Following his victory in Russia’s first direct presidential election (held 1991-06-12), Boris Yeltsin was inaugurated, marking the start of his presidency and a shift toward a popularly legitimated executive in the Russian republic.
Yeltsin and the leaders of Belarus and Ukraine signed the Belovezha Accords, stating the Soviet Union had ceased to exist and establishing the Commonwealth of Independent States (CIS), accelerating Russia’s transition to independent statehood.
The Russian government launched major market reforms commonly associated with “shock therapy,” including broad price liberalization at the start of 1992, triggering rapid inflation but beginning the dismantling of the command economy.
To keep the new Russian Federation intact, the federal government and 86 of 89 federal subjects signed the Federation Treaty, defining federal relations; Chechnya and Tatarstan notably refused to sign.
Russia began mass voucher privatization, distributing “privatization checks” to citizens to exchange for shares in state enterprises—an effort to rapidly create private ownership that also enabled later concentration of assets.
Yeltsin issued a decree dissolving the legislature and calling new elections, a move widely described as unconstitutional and triggering the 1993 constitutional crisis that culminated in armed confrontation in Moscow.
A nationwide referendum approved a new constitution that strengthened presidential authority and restructured federal institutions; it later entered into force later in December 1993.
After failed political and covert efforts to control Chechnya, Yeltsin ordered Russian forces into the republic, beginning the First Chechen War—a major conflict that damaged state legitimacy and fueled insecurity.
Chechen separatists seized a hospital and took over 2,000 hostages, pressuring Moscow into negotiations and a halt in some military actions—an early, highly visible terrorism crisis in post-Soviet Russia.
Facing fiscal pressures, the government implemented the loans-for-shares program, auctioning stakes in major resource and industrial firms for loans—often at low prices—helping shape Russia’s powerful “oligarch” business class.
In the first post-Soviet presidential election, Yeltsin advanced to a second round and defeated Communist challenger Gennady Zyuganov, securing a second term amid intense polarization and controversy over campaign practices.
Russian and Chechen representatives signed the Khasavyurt Accord, effectively ending the First Chechen War’s main phase and postponing a final decision on Chechnya’s status.
Yeltsin dismissed Prime Minister Viktor Chernomyrdin’s government and named Sergei Kiriyenko acting prime minister, a disruptive reshuffle preceding the 1998 financial crisis and repeated cabinet instability.
The government devalued the ruble, defaulted on domestic debt, and imposed a moratorium on certain foreign obligations—events that deepened recession, reshaped politics, and discredited parts of the reform agenda.
After sacking Sergei Stepashin’s government, Yeltsin appointed Vladimir Putin as prime minister and publicly signaled him as a preferred successor, setting the stage for the transfer of power at the end of 1999.
In a televised New Year’s Eve address, Yeltsin announced his resignation and transferred presidential powers to Prime Minister Vladimir Putin as acting president, ending the Yeltsin presidency.
Boris Yeltsin Presidency (1991–1999)
