The plane disappeared from radar 20 minutes after taking off from the resort of Sochi at 05:20 (02:20 GMT). Fragments have now been found and one body has been retrieved.
The defence ministry said the Tu-154 was carrying service personnel, members of the famed Alexandrov military band, and reporters,BBC reports.
The flight originated in Moscow and had landed at Adler airport in Sochi for refuelling.
The plane was carrying passengers to a New Year's performance for Russian troops deployed in Syria.
The performance was scheduled to take place at Russia's Hmeimim air base, near Latakia.
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