During the following months, Yeltsin was particularly attentive to the mood that dominated the public, he demanded that the government efficiently deal with the issues that were worrying citizens. The President carried out a complete reorganisation of the Cabinet of Ministers, which in January 1996 began working on a new program of reforms.

From January to April 1996 the President signed a series of decrees which dealt with the compensation of budgetary workers and of pensioners and increasing grants to students and artists. Large strides were made in the resolution of the Chechen crisis. The signing of treaties between Russia and Belarus and likewise between Russia, Belarus, Kazakhstan and Kyrgyzstan demonstrated the seriousness with which the post-Soviet countries viewed integration.

As part of his campaign, the President made a total of 52 trips to the various regions of the Russian Federation, in part to activate the various agreements struck between the Central Federal Government and the different provinces and regions of Russia.

Yeltsin’s determination, his desire to see all Russian people living freely and as they deserve, his uncompromising battle against those who attempted to steal power away and drive Russia away from its rightful course — it was these factors that eventually brought him victory in the 1996 presidential elections. In the second round of the elections, Yeltsin beat out Genadiy Zuganov, the leader of the Russian Communist Party, winning 53.8%  of the votes. The main outcome of this victory was not just the election of Boris Yeltsin, it was proof of the success of the new Constitution, of the rejuvenated political system and of the new Russian State itself.

The presidential marathon of ’96 proved to have an important and lasting effect on the socio-economic and political situation in Russia. The victory made it possible to ease the social tensions and to focus on moving towards a free-market economy. The strengthening of the democratic foundations of the Constitution continued, trade of foods, currency, precious papers began to flourish. Unfortunately, the situation in Chechnya showed no signs of easing: after the presidential elections armed conflict picked up. Consequently, the president sanctioned talks to take place in Hasavurte on 22nd and 30th August 1996, which ended with the signing of a number of important documents. In accordance to the signed treaty, both sides ceased their military action, the Federal armed forces were withdrawn from the region and discussion on Chechnya’s status was put off till 2001.

By Spring 1997 the President completed his efforts in reorganising his parliament, whose chief aim during Yeltsin’s second turn as president was to work on a new socio-economic program. The resulting program gained fame under the title «The Seven Chief Actions».

The Government enthusiastically set upon trying to achieve each of the set goals, although not all their decisions were met with understanding and approval, both from the people and parliament. The President sounded his criticism of these «young reformers» in his address to the Federal Committee in February 1998; and on 23rd March he issued a decree for the resignation of his prime minister Victor Chernomyrdin and his entire cabinet. A decision that was initially seen as a sensation, proved to have at its core a deep understanding of the necessity of the completion of a certain phase in the economic politics of the country.

The political «heavyweight» Chernomyrdin was replaced by the young Sergei Kiriyenko and the President once again demonstrated his principle of constant rejuvenation and rotation of the government.

However, in August 1998 Russia came face to face with a world wide financial crisis, which eventually brought the downfall of Kiriyenko’s cabinet. The Default, the collapse of the Russian banking system and the complete devaluation of the ruble caused great problems for the economic stability of the country; surprisingly though, the Russian market showed itself to be much stronger than was expected. The August crisis was followed by an upsurge and by replacing imported goods with local ones and encouraging export the economy was soon stabilised.