World rabbit production is growing at an annual rate of 3%, but Russia’s share remains minimal at 1.3%. Russia’s national economic development strategy, which emphasizes self-sufficiency in agricultural raw materials and food products, has highlighted the need to transform all sectors of the agro-industrial complex, including rabbit farming. This study analyses the institutional structure of Russian rabbit breeding, focusing on the institutional environment and the factors driving structural change. The research uses abstract-logical, analytical, statistical and monographic methods. The results reveal three primary institutional structures in rabbit farming: agricultural organizations, farms and personal subplots. Most rabbits are reared on household farms using outdated technologies, mainly for subsistence and limited local sales. A promising solution is the development of family-based rabbit farming, as global experience shows its viability and profitability. With modern technologies, family farms with 250–2500 rabbits can be sustainable, provided they have access to finance, local government support, effective marketing channels and technical equipment. This study proposes that rabbit farming can be transformed into a competitive, highly profitable industry through coordinated social, economic, legal and organizational reforms, supported by government funding. A key recommendation is the establishment of industrial-scale family rabbit farms within socio-economic clusters, fostering cooperation and creating synergistic commercial and social benefits.