Russia plays an increasingly important role in the world economy and politics. It is the world's largest country with immense natural resources, which help Russian government to attract foreign investors and shape European as well as global geopolitical agenda. Its economy has undergone crucial changes from the Soviet central-planning model towards the market-based economy just within two decades. Today, Russia is still considered one of the grey areas for the foreign investors on the world map, as its political and economic system are still in transition and bear significant risks for investors. One of the unique features of the Russian economy, which distinguishes it from the more developed Western countries, is the high State involvement in the economy through ownership in the largest companies in the country. Although, these State-Owned Companies are responsible for the substantial part of country's GDP, there has been limited amount of research on corporate governance of such companies. In order to narrow this gap, the goal of this Thesis is to discover and analyse corporate governance system and standards applied by the State-Owned Companies in Russia and compare them with the available best practices. In order to do so, Hilb's New Corporate Governance (2012) model has been chosen as a main theoretical framework of analysis. Findings of the survey and research conducted by the author show that Russian State-Owned Companies have already implemented compliant corporate governance systems, which to the certain extent enable the proper oversight of the company. Nevertheless, after comparing these systems with best practices available in the literature, the main conclusion of conducted analysis was that, although the significant progress has already been achieved, there is still plenty of room for improvement and refinements which can enhance effectiveness and overall quality of the corporate governance systems observed in the R.