Post-Soviet Moscow

As the capital of post-Soviet Russia, Moscow was at the centre of the nation's historic transformation. As in other parts of Russia, industrial output dropped sharply, unemployment and underemployment increased, and living standards fell for many. Moscow remained Russia's chief financial and research centre, and its service sector expanded rapidly, but not enough to compensate for the industrial decline. Meanwhile, the criminal activity, including organized crime, increased.

In October 1993 violence broke out in the city when members of the Russian parliament launched an armed revolt against the government of President Boris Yeltsin. Many lives were lost when the rebels attempted to occupy the television tower and studios at Ostankino. The Russian military bombarded the parliament building and eventually put down the revolt. In 1999 bombings in Moscow and other cities killed dozens of people. The government attributed the bombings to Chechen separatists.

Meanwhile, a financial crisis in 1998 caused bank failures in Moscow and a devaluation of the Russian currency. Economic hardship continued into the 21st century for many, and the city faced the continuing challenges of improving living standards for a majority of its residents and fighting organized crime.