The article summarizes the findings of a study on developing a closed-loop economy model at the federal and regional levels in Russia. The study aims to identify the challenges faced by Russian market participants in implementing circular economy instruments and technologies at the regional level within the current environment. Given the depletion of natural resources and growing pressure on ecosystems, more and more developed and developing countries are shifting to resource-efficient economies, where the most economic value is derived from efficient resource use. The author examined the most popular circular economy business models and their development pathways in the Russian economy, as well as the key requirements for advancing a circular economy compared to the traditional linear economic model. The study analyzed the dynamics of the formation, disposal, utilization, and burial of solid municipal waste. The research details the outcomes of the federal projects «Comprehensive Solid Municipal Waste Management System» and «Closed- Loop Economy», as well as the application of circular economy instruments in solid municipal waste management. The study results revealed the most effective indicators for achieving the «Environmental Well- Being» national goal. The author identified the main barriers to the circular economy’s expansion and suggested government support initiatives aimed at boosting the supply and demand for secondary resources.