The Russian government banned the use of hard currency with the exception of credit cards in an effort to stabilize the ruble; as a result, inflation began to slow. Russia also announced that 15 percent of its territory suffered from serious ecological damage, mostly because of radiation contamination.
The IMF released a loan of $1.5 billion to support economic reform and the building of democracy in Russia. Yeltsin issued a decree on May 23 to increase foreign investments in Russia in the hope of boosting the economy. Russia then announced its desire to participate in the NATO Partnership for Peace initiative, enrolling on June 22. At the EU summit on June 24–25, Russia signed an economic and human rights accord.
Forces from the Loyalist government of Chechnya, a secessionist republic in southern Russia, captured a rebel stronghold, cutting off links with Russia. Massive violence erupted. On Sept. 15 Chechen president Dzhokhar Dudayev declared martial law and imposed a curfew.
