Geographically, the Baltic States border on Russia, and, in this sense, both parties objectively need to build constructive relations with each other on a range of issues. However, over the sovereign period after collapse of the USSR numerous thorny problems have been plaguing the relationships between the countries concerned. Arguably, in the contemporary span of time an array of dramatic discrepancies arises between Russia and the Baltic states. They should be sorted out and this settlement is vital for stable social-economic development of the entire Baltic region. Still, explicit anti-Russian policy and sentiments of the Baltic elites impede prospects for development of the mutually advantageous cooperation. Noteworthy, in an effort to design a new model of relationships between Russia and the Baltic States security issues along with the interests of the European Union (EU) and North-Atlantic Treaty Organization (NATO) feature a stumbling block. The attempts at exploiting historical memory also are another specific trait of the existent model. All these factors raise the question of accountability of the Baltic countries for the conducted policy and acceptance of its implications. From the authors’ viewpoint, it is a dead-end model. The aim of this research is to find out specific characteristics of interaction between Russia and the Baltic States in the contemporary period of time. The interdisciplinary methodological scientific approaches, as well as the multifactorial balance methodology have been used, which make it possible to analyze dynamics and continuity of interstate relations within wide historical frameworks, since it is impossible to conceive of the modern politics without the entire genesis context. The conclusion was made: despite awareness of benefits from economic cooperation, the political and ideological nuances annihilate an opportunity for a dialogue. Forecasts for evolution of bilateral relations are quite pessimistic. Yet, further exacerbation of the Russian-Baltic relations is capable of confounding the internal policy of the Baltic States as well.