Russia's Economic Crisis

Russia's Economic Crisis In November of 1997 markets fall worldwide, marking the beginning of the worldwide economic recession. On March 23, 1998 Yeltsin sacked his Prime Minister Viktor Chernomyrdin and replaced him with not so well known Kiriyenko, the energy minister to Viktor Chernomyrdin. May 12, 1998 coal workers strike over unpaid wages. They block the Trans-Siberian railway. This turns foreign investors off. Stock prices fall in the same month after the passing of a law calling for the removal …

…causes over one year which led to the collapse of the world, Russian, and American markets. Causing a downward spiral in the FTSE5000 (London), Nikkai (Tokyo), BOVESPA (Brazil), Hang Sang (Hong Kong) and various other markets in all countries. In addition it caused potential investors to be cautious about the economic risks of investing in a previously bull market. Due to the increasingly global markets all countries were affected by this crisis in Russia.