The Russian economy contracts by 5.3% in 1998. GDP per capita even reaches its lowest level since the formation of the Russian Federation in 1991 (see Figure 2). Sovereign debt restructurings take place in 1999 and 2000. An IMF agreement of USD 4.5bn, concluded in July 1999, is meant to help Russia to regain access to the international financial markets access. However, allegations of irregularities in the banking sector again have a negative impact on the country’s financial market access and government bond yields remain high during the course of 1999. Nevertheless, thanks to both the sharp depreciation of the ruble, which continues in 1999, and an increase of international oil prices, the Russian economy recovers rather quickly and grows by 6.4% in 1999, 10% in 2000 and 5.3% in 2001. Meanwhile, inflation falls from 85.7% in 1999 to 20.8% in 2001 and 21.5% in 2001. The unemployment rate, which was 13% in 1998 and 1999, decreases to 9% in 2001.