As an approach to move towards a sustainable waste management system, circular economy (CE) is gaining an increased interest by most countries. Russia is among the countries where the CE is one of the priorities of the country’s economy, with a market value of the CE is USD$ 755.05 billion. However, such a strategy is facing challenges and barriers which are country specific. This study aimed to review the status of the CE in Russia and to identify the obstacles that are hindering the country from achieving its objectives. Moreover, the study aimed to evaluate the role of eco-industrial parks (EIP) in Russia in promoting the CE model. The study findings indicate that the CE adoption in Russia is still in its early stages. To create an enabling environment for CE promotion in Russia, there is a need to overcome several institutional, technical, and social barriers. Russian higher educational institutions are playing a major role to create the critical mass of experts that will help the country transition towards a CE model. Using life cycle assessment (LCA) to analyze the environmental performance of one of the EIPs in Russia revealed that such enterprises are more sustainable than the business-as-usual scenarios, under which the generated solid waste is buried into landfill. The comparison shows that by diverting 1.813 million tons of mixed municipal solid waste that is generated in Moscow to EIP would lead to a reduction in environmental impacts. The total global warming potential of the EIP scenario is less, by 59%, than the direct landfilling scenario, while the eutrophication, acidification, smog, and ozone depletion are less, and fossil fuel depletion impacts under the second scenario are less, by 81%, 26%, 18%, and 81%, respectively. Furthermore, the health impacts including carcinogenic, non-carcinogenic, eco-toxicity were found to be 92%, 96%, and 96%, respectively, less than the baseline scenario.