Abstract: The study analyzes approaches to regional economy restructuring, the increase of stability of regional economic systems. It has considered the existing problems in the sphere of the regional development has revealed the factors generating structural disproportions, inertia of the Russian regions in conditions of instability of the world and domestic economy, the unfavorable external environment, economic sanctions of western countries. The study has offered a concept of regional economy restructuring. It has also proved the need for formation of a regional restructuring strategy which includes mechanisms and instruments of structural disproportions overcoming in the economy of regions. The study has paid a special attention to the analysis of institutional factors providing an optimization and regulation of restructuring and modernization processes of the regional economy.