Russia is facing two interrelated problems. The first problem is its economy. The Russian currency, the ruble, was devalued August 17, making the Russian people pay more for scarce goods. The second problem is the political crisis caused by Russia's failing economy. The devaluation increased consumer prices because Russians rushed to purchase goods that will hold value as the ruble continues to lose value in a continuous free fall.
More people seeking to buy the same goods causes the price of scarce commodities to increase.
Deepening public discontent has produced a tumultuous political state in Russia. To overcome the economic crisis, the president of Russia, Boris Yeltsin, dismissed Prime Minister Kiriyenko and the entire Cabinet, and re-appointed a former leader, Viktor Chernomydrin, to ensure stability. Nevertheless, the elected political body of Russia, the Duma, rejected Chernomyrdin twice. Finally, a new acceptable candidate, Yevgeny Primakov , was chosen. But clearly, Yeltsin's government is in disarray and even the Communists, who control the Duma, are putting pressure on his imminent resignation.