In this work, the process of modernization of Russian cities according to the national project «Smart City» was considered and analyzed. The purpose of this study is to identify the level of development and implementation of the project to implement the smart city system in Russian cities. The methodological basis of the study is the analysis of data contained in reports, documents and scientific publications available in open sources, including foreign ones. Statistical methods are used, such as graphical and tabular presentation of research data, and a comparison of information related to the problem under study is carried out. During the analysis, difficulties faced by project implementers in the regions of Russia were identified, and risks that hinder the active creation of smart cities were identified. Conclusions were made that the concept of a «smart city» is aimed at introducing innovative technologies and activities that improve resource management and living conditions of the population, and for the successful implementation of smart city projects, it is necessary to increase public awareness, develop economically sustainable models and active international cooperation.