In this paper we take advantage of a longitudinal survey of Russian households and individuals by using an ordered logit model to explore the determinants of life satisfaction and its changes in modern Russia. Most prior research on well-being in Russia is focused on the transition years. In contrast, we focus our attention on the more recent (and economically stable) period from 2004 to 2008. We extend prior models to include more determinants. In particular, we are interested in the effect of living space, perceived economic rank and other subjective attitudes and perceptions on well-being. In addition, we endeavor to correct for bias due to unobserved personality factors by instrumenting for “permanent” happiness. Our results clearly indicate the importance of non-economic determinants of reported well being.