The collapse of the ruble is similar to the crisis in Russia in 1998. Expert: “The system may collapse”

Let’s compare the pattern of events then and now.

The policy of the Russian government in 1998 was to maintain a stable ruble exchange rate. The Russian currency was overvalued 1.6-2 times – at the free exchange rate, the dollar would then be worth no more than six, but 10-12 rubles.

That power, under the presidency of Boris Yeltsin, refused to acknowledge this fact and did not allow the devaluation of the currency until all resources were exhausted. Then the ruble exchange rate was liberalized, but at the same time the payment of foreign and domestic debts stopped. There was a so-called default or insolvency.

And that means more than just another government change. It was the ideological and moral bankruptcy of those who have been the face of the regime for the past seven years. (This does not prevent Sergei Kiriyenko, prime minister of the declaring government, from shining in the Kremlin salons today as Vladimir Putin’s deputy chief of staff.)

The regime’s subsequent transformation has not only pushed others to the top. The regime has gradually changed, but most of all the spirit of the times has changed. Freedoms were restricted, and the 90s ended before the calendar date.

The current Russian government, which is a direct descendant of the post-default regime, is not going to change. And those options don’t even exist. Until the dictator’s rule ends, they will remain in power.

Echo Richards

Echo Richards embodies a personality that is a delightful contradiction: a humble musicaholic who never brags about her expansive knowledge of both classic and contemporary tunes. Infuriatingly modest, one would never know from a mere conversation how deeply entrenched she is in the world of music. This passion seamlessly translates into her problem-solving skills, with Echo often drawing inspiration from melodies and rhythms. A voracious reader, she dives deep into literature, using stories to influence her own hardcore writing. Her spirited advocacy for alcohol isn’t about mere indulgence, but about celebrating life’s poignant moments.