The social situation in Russia continued to worsen. In addition to a considerable shadow economy, corruption, high (above all organized) crime as well as social degradation and impoverishment of large sections of the population assumed a threatening extent. In the 1990s, government arrears in wages repeatedly led to nationwide strikes and protests (e.g. blockade of important railway lines), which in turn aggravated the already tense economic situation. In view of the increasing financial hardship of the government, the situation also deteriorated (especially After the completion of the withdrawal of Russian troops from the former stationing countries in Central and Eastern Europe as well as from various former Soviet republics, the state of the armed forces (decline in reputation and morale due to inadequate supplies and equipment, arrears of wages, involvement of high-ranking members of the armed forces in corruption affairs, numerous incidents). Extremist currents increasingly gained in importance in domestic politics; Attacks against democratic politicians, but also against journalists and business people, increased. In the course of the worsening situation, the Russian domestic secret service (since 1995 Federal Security Service, abbreviation FSB), which emerged from the KGB through several restructuring and renaming, was given ever more extensive powers. High-ranking military personnel involved in corruption scandals, numerous incidents). Extremist currents increasingly gained in importance in domestic politics; Attacks against democratic politicians, but also against journalists and business people, increased. In the course of the worsening situation, the Russian domestic secret service (since 1995 Federal Security Service, abbreviation FSB), which emerged from the KGB through several restructuring and renaming, was given ever more extensive powers. High-ranking military personnel involved in corruption scandals, numerous incidents). Extremist currents increasingly gained in importance in domestic politics; Attacks against democratic politicians, but also against journalists and business people, increased. In the course of the worsening situation, the Russian domestic secret service (since 1995 Federal Security Service, abbreviation FSB), which emerged from the KGB through several restructuring and renaming, was given ever more extensive powers.
In the face of a new financial crisis in the spring of 1998, Russia faced the urgent task of restructuring the deficit state budget and continuing the economic reforms that had almost completely stalled; Russian financial policy in particular became increasingly dependent on international lenders (including the IMF and the World Bank). After repeated restructuring of the cabinet, into which several young reform politicians (including Boris Nemtsov, * 1959, † 2015; Anatoli Tschubajs, * 1955) were accepted, Yeltsin dismissed the Chernomyrdin government in March 1998 and nominated the previous energy minister, Sergei Kirijenko (* 1962). as Prime Minister (only confirmed in the third vote by the State Duma in April 1998). Kiriyenko, who presented a rigorous anti-crisis program in June 1998 but was rejected by the State Duma with planned tax laws to cover budget gaps, lost his post in August 1998. In September 1998, the State Duma elected former Foreign Minister J. M. Primakov as his successor; Although he was able to calm down domestic political issues for a while, he did not achieve any improvement in the economic situation during his short term in office, whereupon Yeltsin also dismissed him in May 1999 and replaced the previous Minister of the Interior, Sergei Vadimowitsch Stepashin (* 1952) used as head of government. In August 1999, Stepashin was appointed by the former head of the domestic intelligence service W. W. Putin replaced as prime minister. On the one hand, he was confronted with an internationally sensational corruption affair that reached into the highest levels of government and, on the other hand, with the worsening domestic and economic problems accompanied by a decline in state authority. In the parliamentary elections on December 19, 1999, the KPRF again became the strongest political party with 24.3% of the vote, but the real winner was the newly formed, pro-government bloc (above all the “Unity” movement with 23.3% and the reform-oriented one Union of right-wing forces with 8.5% of the vote). The Zhirinovsky bloc received 6% of the vote. The previously second strongest Duma faction, »Our House – Russia«, failed at the 5% hurdle and was only able to win a few direct mandates.
The second Chechen war
The conflict with Chechnya broke out again when Chechen Muslim rebels proclaimed an Islamic state in Dagestan in the summer of 1999 and fights with Russian soldiers broke out. Bloody bomb attacks against houses in Moscow and other large Russian cities, which were attributed to Chechen terrorists, provided the occasion for one on September 30th / 1. 10. New military action against the breakaway republic, begun in 1999, which was largely occupied by Russian troops by the spring of 2000 after fighting with heavy losses (combined with a wave of refugees in the neighboring regions, especially to Ingushetia); but they continued to face violent partisan fights v. a. in southern Chechnya, which in June 2000 came under the direct administration of the Russian President.
