While the dominance of urban entrepreneurialism, governance and competitiveness in Western cities has been well documented, much less is known about the drivers and mechanisms of urban development in the Russian context. This article examines the role of the local state in urban development under the conditions of post-socialist transition in the Russian Federation. The article focuses on the Special Federal Programme for the Preservation and Development of the Kazan Historic Centre (2001–2005). The study challenges the assumption of a key role of partnership between the public and the private sector. Under conditions of post-socialism, the state may have sufficient economic resources and the capacity to govern which may make the role of public–private partnership less relevant. Other findings are as follows: (i) the local authorities play a leading role in entrepreneurialism; (ii) there is a mismatch between the entrepreneurial rhetoric and reality; (iii) while the authorities in Kazan engage in ‘entrepreneurial urbanism’, the similarities with Western cities are superficial or even deceptive, due to the underlying political and economic conditions of Russian cities.