We discuss the development, challenges and outcomes of model forests in the Russian Federation as potential tools to help ensure forest-based sustainable development. We use in-depth interviews to explore local perspectives on Pskov and Gassinski model forests. We find that despite demand for change from some local non-governmental and companies, as well as support from international players, the idea of participatory environmental governance is still not widely accepted, the system remains dominated by the traditionally big state and effects of such alternative initiatives remain limited. Using our case studies, we show that unless domestic and international stakeholders of model forests refocus their efforts, model forests are likely to remain unstable 'islands' of change with only limited local impact.