Russia’s 1998 financial crisis included a sharp devaluation of the ruble.
On August 17, 1998, the Russian government devalued the ruble, restructured domestic ruble debt, and declared a temporary moratorium on some payments by commercial banks. The measures followed falling oil prices, weak tax collection, political uncertainty, and pressure from the wider emerging-market turmoil that began in Asia.
The ruble lost much of its value, Russian banks faced severe stress, and domestic investors suffered large losses. The crisis also contributed to the failure of Long-Term Capital Management in the United States, whose highly leveraged positions were exposed to disrupted markets.
This event is distinct from the 1997 Asian financial crisis, although the two were connected through international investor confidence. Russia’s economy later benefited from higher oil prices and improved fiscal conditions in the 2000s.