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The transformation of Russia's party system demonstrates a trend towards a decrease in party competition since the establishment of the party of power, United Russia, which claims to have become the dominant party. These developments are unique among post-Soviet countries, which merely attempted to create personalist, rather than party-based, monopolies of ruling elites. Why have Russia's elites opted to build a party-based monopoly and what are the prospects of this enterprise? The formation of the ruling group's party-based monopoly is explained with the help of a part-contingent model of an interrelated chain of causes and effects: (1) open electoral conflict among elites; (2) forced instrumental use of political parties as tools by the elites, in this conflict; (3) elite conflict turned into a zero-sum game; (4) a set of incentives for the ruling elite to make further instrumental use of the party of power; (5) an effective constellation of ideological and organizational resources of the party of power. The article also analyses the benefits and risks of the dominance of the party of power and its possible role in the consolidation of a non-democratic regime in Russia, along lines comparable to the Institutional Revolutionary Party in Mexico. [ABSTRACT FROM AUTHOR]