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This article discusses ‘green economy’ as a crucial principle of regional socio-economic de-velopment at its current stage. In the Russian context, this principle is particularly relevant in the light of the catastrophic increase in pollution of the human environment and habitat. ‘Green’ economy fo-cuses on modernization of production to ensure its sustainability and restoration of human habitat. The empirical part of the study deals with the social, economic and, above all, environmental problems (resource depletion, pollution, increased health risks) faced by older industrial regions in the Urals (Sverdlovsk, Chelyabinsk and Kurgan regions). These regions are now struggling with the decline of their key industries, such as mining and metallurgy. It is shown that the problems they cur-rently face largely stem from the orientation of the Russian economy towards raw material exports. The article also analyzes the innovation and technological potential of these regions and their priori-ties of socio-economic development. It is shown that their potential (e.g. human capital) is sufficient to modernize their economies. Some recommendations are formulated for these regions’ more efficient transition to the ‘green economy’. These include the development of high-tech industries and eco-friendly technologies, introduction of modern environmental standards of economic activity as the basis of modern regional socio-economic systems.

‘Green economy’ as a strategy of modernization of older industrial areas in the Urals