Introduction. The authors analyze the peculiarities of the formation, evolution and prospects of Russian ethnofederalism, based on the achievements of Russian and Western researchers. Methods and materials. Along with classical approaches to the nature of ethnofederalism, the authors proceed from the concept that relations between the elites of the center and the regions in the Russian Federation are based on the so-called “incomplete contract”, which is characterized by the absence of guarantees for its implementation. Analysis. This political practice comes as a source of the elites desire to change the distribution of power and resources in their favor while the Constitution remains unchanged, the “pendulum” nature of relations along the “federal center – regions” line. In modern Russia federalism does not have a value dimension, both for the elites of the center and the elites of most regions, and it remains a purely instrumental concept. The authors build their analysis of interethnic relations and the prospects of ethnic federalism in Russia, proceeding not from any ideal model, but starting from the existing ethnic political reality with its already existing imperfect institutions of ethnic federalism. At the same time, a differentiated approach is used to assess the correlation between federalism and ethnicity. Results. The authors come to the conclusion that, despite the numerous shortcomings of the ethnic model of federalism (organizational complexity, special requirements for political elites, asymmetry with its inherent “injustice”, etc.), there is no real alternative to it in Russia.