Hello everyone

I'm 26 years old, US citizen, born and raised in Russia. My sister is 21 and currently live in Russia. This summer she plans to move to the states on F1 visa. My questions are - can I file I-130 for her? Can she became a lawful permanent resident? Does she have to leave states and wait in Russia or she can stay in the states throughout the whole process? How long can it take? Can she work?

Thanks

Yes you can file an I-130 for her.
It will take 10 - 11 years for her priority date to become current.
She won't be able to wait for it in the U.S.

You might be assuming a bit, I take it that she does not yet have a F1 Visa. F1 requires amongst other things non immigrant intent.

I agree with Boiler.
She cannot stay in US during the processing.
Average wait is about 12 yrs