To keep foreign investors from pulling up stakes, the Russian central bank had to keep raising the interest rate on loans to banks. That left them little ammunition to continue to fight off the collapse of the ruble. The Yeltsin government found itself in an economic vice. To stave off default, they had to sell treasury bonds at ever higher interest rates just to service the debt. A pullout would force Russia to devalue the ruble to meet its debts and to brake imports.
Foreign institutions are understandably nervous.
In June, Standard and Poors downgraded Russia's long term credit rating, forcing the government to offer even higher rates on future bond offerings. The most stinging show of disrespect for Russia's economic future was the auction of Rosneft, the government-owned oil company. With oil prices depressed on the international market, however, they did not receive a single bid. They announced that they would try again in a few months, hoping that a rebound in oil prices will enhance Rosneft's appeal to foreign oil companies. The negotiations between the IMF and the Russian government had stalled for months.