He was reelected and then resigned as president

Yeltsin's chances of winning reelection to the Russian presidency were diminished by the Chechnya conflict and the ineffectiveness of his free-market policies to promote economic expansion. But in a further stunning comeback, he defeated a communist rival to win reelection in the second round of elections held in July 1996, one of the most interesting facts about Boris Yeltsin. After winning the election, he spent several months recovering from a heart attack he had in June due to the stress of the campaign. Yeltsin's physical condition was a recurrent concern.

Yeltsin struck a cease-fire agreement with Chechnya early in his second term and worked to negotiate a peace treaty in 1997, but tensions persisted. Islamic insurgents from Chechnya attacked Dagestan in August 1999, and the Chechens were accused of carrying out several attacks throughout Russia the following month. Yeltsin promptly gave the order for the republic to receive its forces back. Political scheming predominated much of the late 1990s government as Yeltsin removed four premiers and his entire cabinet in 1998, though many were eventually reinstated.

The State Duma began an impeachment campaign against Yeltsin the next year, alleging, among other things, that he had fostered the dissolution of the Soviet Union in 1991. However, the Duma was unable to obtain the required number of votes to move further. Yeltsin, who is notorious for being unexpected, announced his resignation on December 31, 1999, in favor of what he called a new, dynamic leadership. Yeltsin appointed Vladimir Putin, the prime minister, as acting president. In return, Putin granted Yeltsin immunity from further legal action.