Aim. To identify specific features of production and use of transportation biofuels in selected developing countries, as well as to assess the potential of bioethanol industry development in the Russian Federation (RF).Objectives. To assess the economic efficiency of bioethanol production in Russia; to reveal the potential of applying foreign experience in the development of bioethanol industry in our country.Methods. In the process of the research the methods of system analysis, comparative analysis, method of expert evaluations, mathematical, statistical methods were applied.Results. The actual estimation of economic efficiency of bioethanol production in Russia was obtained. The cost of a unit of bioethanol, which is equivalent to a liter of gasoline in terms of energy content, is 5-36% higher than the cost of a liter of gasoline (depending on the production technology). At the same time, state support for the production and use of bioethanol in our country is reasonable. This will allow to create additional demand for grain crops and reduce carbon dioxide emissions from motor transport. The production and use of bioethanol will form an additional supply in the gasoline market, will give an opportunity to support projects on deep processing of grain and wood chemistry.Conclusions. The experience of Brazil, China and Indonesia in the development of bioethanol industry is relevant for Russia. At the same time, in order to minimize possible risks in the field of food security at the initial stage of bioethanol industry development, low-quality grain stocks should be used as feedstock and the production of second-generation bioethanol should be stimulated.