Introduction. The issues of federalism theory, history, policy and practices have been the focus both in Russia and abroad over decades. Hundreds of books, thousands of research papers, lots of scientific conferences and seminars seem to have been dedicated to this problem. Yet we are still watching a burgeoning interest in this issue due to the increasing role of federalism in the reality of the modern world.Methods and Materials. The research involves such methods as logical analysis, systematic and comparative legal methods, etc.Research Outcomes. 1. The federal system of Russia, its political stability, sustainable nature of interfederal relations are the true facts, giving rise to necessity for the transition to a new model of federalism, which can prove to be more appropriate in terms of current economic and political environments prevailing in Russia.2. There is no doubt that the federal system of polity of the Russian Federation is justifed by legal, judicial, political and economic aspects, with no reasonable alternatives. The question is whether the existing principle of national and territorial structural organization of the Russian Federation is appropriate by now. There are persuasive arguments for the priority of the geographical and economic principle over the national and territorial division.3. The geographical and economic principle priority in the organization of modern Russia does not mean that specifc national and ethnic features of certain regions will be neglected.4. The geographical and economic principle priority in the organization of the Russian Federation will result in the consolidation of Russian entities and provide them with more extent of economic independence.Discussion and conclusion. It is obvious that from perspective of long-term development of Russia, the development of all Russian entities should be going at the same pace, which is not an easy task in the existing social, political and economic environments. The pace of development demonstrated by Moscow or Saint Petersburg Regions, or Tatarstan cannot be justly compared with those of Ingushetia or Dagestan. Indeed, the developed entities of the Russian Federation cannot endlessly donate to those lacking dynamics in their development. It is crystal clear that the modern day organization of the Russian Federation based on mere national and territorial grounds can hardly promote the equal development and integration of all Russian regions. Cultural and civilizational distinctions of certain entities should not lead to their isolation within one country and lagging behind national development.
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