Russia significant event 1998 Russian financial crisis
Modern liberal Constitution, international cooperation and economic stabilization
In December, a referendum was held and approved, which introduced a new constitution, giving the president enormous powers. The 1990s were plagued by armed conflicts in the North Caucasus, both local ethnic skirmishes and separatist Islamist insurrections. From the time Chechen separatists declared independence in the early 1990s, an intermittent guerrilla war was fought between the rebel groups and Russian forces. Terrorist attacks against civilians were carried out by Chechen separatists, claiming the lives of thousands of Russian civilians.After the dissolution of the Soviet Union, Russia assumed responsibility for settling the latter's external debts. In 1992, most consumer price controls were eliminated, causing extreme inflation and significantly devaluing the rouble. High budget deficits coupled with increasing capital flight and inability to pay back debts, caused the 1998 Russian financial crisis, which resulted in a further GDP decline.
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