On September 12, 1998, the Russian government defaulted on its debt and devalued the ruble, triggering a financial crisis. The crisis was caused by a combination of falling oil prices, excessive borrowing, and political instability. The Russian economy collapsed, and millions of people lost their savings and jobs. The crisis led to widespread poverty and led to a shift in Russias political and economic system. The event had global repercussions, affecting the international financial markets.