Along with the recent rise of the knowledge economy, intellectual capital (IC) has become the key elements for value creation (F-Jardon and Martos, 2012; Sharabati et al., 2010; Cabrita and Bontis, 2008). As intellectual capital includes different types of knowledge dispersed across different levels and repositories in an organization, it is logical to assume that practices for managing knowledge would positively contribute to the development of IC. Discourses of intellectual capital and knowledge management have been developing for many years independently from each other, but it is clear that the synergy of these two disciplines will help to answer the question of how to manage IC. The findings of this study might inform managers in their decision-making about allocation of resources to different KM practices, aimed to enhance intellectual capital and ultimately, organizational performance of Russian companies. The data for the research was collected in January-March 2015. The sample comprises 240 Russian companies. The data is collected by a survey using the scales already validated in the international context. We use a two-step analysis – factor and regression analyses – to answer the research questions. The findings of the paper show which knowledge management practices enhance development of different intellectual capital elements. As managing IC becomes a crucial task in the economy of the XXI century (Andreeva, Garanina, 2016; Dumay, Garanina, 2013) the findings have very important implications for managers as they can focus on developing those knowledge management practices that are the most important in development of IC elements. The findings contribute to further development of IC theory by providing a more fine-grained understanding of how different KM practices contribute to development of various IC elements which on their turn enhance financial performance in the emerging economy context. This paper might be the first step towards better understanding of how knowledge management practices and intellectual capital enhance competitive advantage on Russian market. From the practical point of view, the paper helps to formulate the practical and applied recommendations on how to improve the management of intellectual capital and knowledge in Russian companies.