The fate of Col Gaddafi's regime is a key sticking point in talks on the future of Libya Russia is a critic of Nato's campaign in Libya, giving these routine talks special significance.
South African President Jacob Zuma will also attend.
On Sunday Libyan rebels rejected an initiative by the African Union to sponsor talks between them and the government in Tripoli.
Gaddafi question This event is is one of regular Nato-Russia Council meetings, but it has gained more than usual significance because of the continuing fighting - and bombing - in Libya, says the BBC's Daniel Sandford in Moscow.
Russia has criticised the bombing of Libya, saying the mission has lost its original focus on protecting civilians, and is now about removing the Libyan government.
In a statement it said the only way to stabilise the situation in Libya was an "immediate ceasefire" and talks "with support, but not interference, from outside the country".
On Sunday Libyan rebels rejected an AU peace initiative, with rebel spokesman Abdel Hafiz Ghoga saying: "We have rejected it. It did not include the departure of [Libyan leader Col Muammar] Gaddafi, his sons and his inner circle."
But TNC head Mustafa Abdul Jalil later conceded that Col Gaddafi was welcome to live out his retirement inside Libya as long as he gave up all power.
"As a peaceful solution, we offered that he can resign and order his soldiers to withdraw from their barracks and positions, and then he can decide either to stay in Libya or abroad," he told Reuters news agency.
"If he desires to stay in Libya, we will determine the place and it will be under international supervision. And there will be international supervision of all his movements."
President Zuma of South Africa - which has played a leading role in attempting to mediate in Libya - will be at the talks in Sochi.
He will discuss Libya with the President Medvedev, and possibly with Nato, our correspondent says.
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