Introduction. In modern conditions of great importance is the modernization of the Russian economy. It is necessary to analyze the limitations of modernization. This determines the relevance of the study. Theoretical analysis. Modernization involves the restructuring of the economy, producing competitive products. Its limitations are: ill-conceived economic policies, inflation, economic instability provoked by economic crisis, the weakening role of the state in the economy. Limitations lead to the formation of contradictions in the economy of the country. The main contradictions of modernization are: the contradiction between the goals of modernisation and the means of achieving objectives between the need to strengthen the role of the state in crisis and the weakening of the role of the state in modern conditions. Conclusions. In this case the mechanism of the removal of restrictions would be to strengthen the area of responsibility of the state in conditions of instability of economic development, the development of promising industrial policy.