The RTS Index lost almost 80% of its value during the Russian financial crisis of 1998.
The crisis intensified in August 1998 when Russia devalued the ruble, defaulted on domestic debt, and declared a temporary moratorium on some foreign debt payments. The RTS, a dollar-denominated Russian stock index, plunged as investors reassessed the country’s political, fiscal, and financial risks.
Russia had struggled with weak tax collection, falling commodity revenues, large budget pressures, and short-term government debt known as GKOs. The ruble’s devaluation also damaged borrowers with foreign-currency obligations and contributed to banking-sector distress.
The RTS Index and MICEX Index were separate Russian benchmarks for many years. They were later combined through the Moscow Exchange, created in 2011. The crisis also helped trigger losses at Long-Term Capital Management, although the two events were not the same collapse.