10. Russian Financial Crisis (1998)
The 1998 Russian financial crisis was precipitated by a combination of factors, including a sharp decline in global oil prices, which significantly reduced Russia’s export revenues, and the aftermath of the 1997 Asian financial crisis, which led to capital flight from emerging markets (dollarsandsense.org). In response to these pressures, the Russian government devalued the ruble, defaulted on domestic debt, and imposed a 90-day moratorium on foreign debt repayment. These actions resulted in a severe economic downturn, with the Russian economy contracting by 5.3% in 1998, and inflation soaring to 84%, leading to widespread social unrest and political instability.
