The article highlights the process of “indigenization” as an element of Soviet national policy. The research has been conducted on the example of Autonomous Republic of the Volga Germans. The “indigenization” was an element of Soviet national policy in 1920s, accomplished in all the nation-state formations of the USSR both Union and autonomous. The “indigenization” was supposed to consolidate the position of “titular” nation, but also caused a whole new set of problems in interethnic relations.