The subject of the study is the municipalities of the Arctic, their specifics of functioning and development in comparison with the southern regions of the Arctic states. The purpose of the work was to identify problem areas of regional development that affects the socio-economic situation of the Arctic municipalities, prospects, and directions of their development. The theoretical and methodological basis consisted of the works of Russian and foreign scientists on regulating and stimulating the socio-economic development of the territories and municipalities of the Arctic. The study grounds on an integrated approach to the functioning and development of municipalities in the specific conditions of the Arctic, as well as general and specific factors for the growth in the Russian Arctic, considering international research. An analysis of the leading indicators of the socio-economic situation of the Arctic territories showed several common problems for the development of municipalities. The main forces of state regulation should be aimed at solving the issues of human development, social and transport infrastructure and require the approval and state support of the Arctic territories. Government policies to minimize negative processes and factors for the municipalities of the Russian Arctic should base on international experience. Authorities and management can use the results of the study for the development of fiscal, tax, investment policy, programs, and plans for the socio-economic development of the Arctic territories.