Russian financial crisis

Weakened by the Asian crisis's effect on commodity prices and years of unsustainable short-term government borrowing, Russia defaulted on its domestic ruble-denominated debt and devalued the currency on August 17, 1998. The ruble lost roughly two-thirds of its value within weeks, several major Russian banks collapsed, and the shock also helped sink the US hedge fund Long-Term Capital Management, which had large bets tied to Russian markets and required a Fed-organized bailout to unwind safely. Paradoxically, the cheaper ruble and rising oil prices from 1999 onward helped kick off a decade of much stronger Russian growth under Vladimir Putin, who became prime minister in 1999 and president in 2000.