The paper analyzes the formation process of the circular economy and of the related closed-loop supply chains within the framework of the transition towards a contemporary sustainable socio-economic development. It describes the role the circular economy plays in reducing resource use, waste production and environmental pollution as well as in contributing to significant economic and social progress. Furthermore, on one side, the attention is focused on barriers to the development of the circular economy in the Russian Federation. On the other side, in the paper the potentials to develop transition strategies to replace the current linear economic model by the circular one are provided. The study highlights the ways of how companies can organize their business to move from the linear model to a more sustainable one, also by the gradual implementation of closed-loop supply chains. Finally, the perspectives of the application of the circular economy principles in several branches and companies are characterized. Refs 34. Fig. 1. Tables 4.