The efficiency of any model of federative relations is determined by how it corresponds to the historical background and realities of a country at a particular development stage. In Russia the model that might be called “unitary federalism ” is applied. It was formed in the early noughties and had favorable results as it prevented the collapse of the Russian Federation or its transformation into a Confederation. At the same time the high centralization of financial resources and powers at the Federal level does not contribute to the further development of the constituent entities of the Russian Federation. There is a lot of evidence for this: a high level of interregional socio-economic inequality, disproportions in the level of development and budget provision of regions, low rates of GRP growth. There are only 15 or 16 regions-“donors” among 85 constituent entities of the Russian Federation. Russian federalism requires the formation of a new balance between state powers and resources. In fact “Bases of the state policy of regional development of the Russian Federation for the period till 2025” approved by the decree of Vladimir Putin, the President of the Russian Federation are aimed at achievement of the above mentioned goal. The issue of the Federation Council as an institution itself and in terms of its implementation of constitutional powers will arise at a certain period of these changes. In this regard the experience of the European Union may become useful. The article examines the theoretical basis of the evolution of federalism and of the European integration. A parallel is drawn between the Federation and the Integration association, a comparative analysis of the formation, organization and activities of the Council of the European Union and the Federation Council is carried out. Particular attention is paid to the legislative process, as well as to the implementation of the principle of federalism in the activities of these institutions.