Prosecutors said a fight broke out between a racketeering group of some 20 people who descended on a market in the Volga city of Samara Wednesday morning and about 30 market traders - nationals of Azerbaijan and Tajikistan.
"The visitors demanded monthly payments from the traders, which sparked a brawl involving baseball bats, knives and guns," prosecutors said.
One trader was stabbed in the chest and died in hospital, while several others sustained injuries.
There has been a wave of recent disturbances in Russia involving different ethnic groups. A confrontation between locals in the northern Russian town of Kondopoga, in the Republic of Karelia, and Caucasus natives left at least two city residents dead in late August, and culminated in riots that shook the town as residents demanded Chechens be deported.