Russian financial crisis (2014–2016)

The financial crisis in Russia in 2014–2016 was the result of the drop in oil prices and, to a lesser extent, sanctions. It started with a devaluation of the Russian rouble beginning in the second half of 2014 which led to high inflation at the end of the year. The Russian Central Bank adjusted its monetary policy and successfully stabilized the economic situation. As a result of the crisis, Russian GDP contracted 3.7% in 2015.

The crisis stemmed from at least two major causes. The first is the fall in the price of oil in 2014. Crude oil, a major export of Russia, declined in price by nearly 50% between its yearly high in June 2014 and 16 December 2014. The second is the result of international economic sanctions imposed on Russia following Russia's annexation of Crimea, the war in Donbas and the broader Russo-Ukrainian War.

Capital outflows of $154B and balance of payments shocks put additional pressure on the currency which led to a rise in inflation at the end of the year. In response the Central Bank accelerated the move to a floated exchange rate, sharply increased interest rates from 8% in August to 17% in December and spent $107.5B of Russian foreign reserves in 2014 alone to stabilize the economy, which was ultimately successful.

The crisis affected the Russian economy, both consumers and companies, and regional financial markets, as well as Putin's ambitions regarding the Eurasian Economic Union. The Russian stock market experienced large declines, with a 30% drop in the RTS Index from the beginning of December through 16 December 2014.

During the financial crisis, the economy turned to prevalent state ownership, with 60% of productive assets in the hands of the government. By 2016, the Russian economy rebounded with 0.3% GDP growth and was officially out of the recession. In January 2017, Russia had foreign currency reserves of around $391 billion, an inflation rate of 5.0% and interest rate of 10.0%.

Following the 2022 Russian invasion of Ukraine, the country was hit with a new financial crisis.