This paper employed a psychological-historical framework for an analytical examination of the Russian identity during the Soviet period through the fall of the Soviet Union and the transitional period that led to an establishment of the Russian Federation. A theoretical model is provided for the analysis of Russian identity that can be generalized to any country and any historical time. The psychological lens of Erik Erikson's identity formation at the micro-level of personality development offers a framework to interpret societal change at the macro-level as well as the maintenance of core values such as patriotism, self-discipline, honesty, morality, etc. When dramatic, rapid, and wide-spread change occurred such as with the 1917 Russian Revolution or Perestroika and Glasnost in more recent historical times, it is argued that the healthiest change originates from the thoughtful integration of past values with new patterns of doing things. The temptation to discard important values of the past leaves us mindful of the proverbial warning: "Don't throw out the baby with the bathwater." This paper suggests that Russia's most expedient path to a successful and well adjusted future lies in progressing forward by embracing and testing new ideas without being ashamed or ignorant of its past. It is just such a delicate societal balancing act that holds the greatest promise for promoting realistic optimism and a healthy future for Russia. This analysis should be of interest to educators and other professionals charged with the care, development, or understanding of children and adolescents inside Russia. (Contains 3 tables.)