Russia demands better Latvian treatment of ethnic Russians in Latvia; boundary demarcated with Latvia and Lithuania; the Latvian parliament has not ratified its 1998 maritime boundary treaty with Lithuania, primarily due to concerns over oil exploration rights; as a member state that forms part of the EU's external border, Latvia has implemented the strict Schengen border rules with Russia
Russia and Estonia in May 2005 signed a technical border agreement, but Russia in June 2005 recalled its signature after the Estonian parliament added to its domestic ratification act a historical preamble referencing the Soviet occupation and Estonia's pre-war borders under the 1920 Treaty of Tartu; Russia contends that the preamble allows Estonia to make territorial claims on Russia in the future, while Estonian officials deny that the preamble has any legal impact on the treaty text; Russia demands better treatment of the Russian-speaking population in Estonia; as a member state that forms part of the EU's external border, Estonia implements strict Schengen border rules with Russia
Illicit drugs
transshipment and destination point for cocaine, synthetic drugs, opiates, and cannabis from Southwest Asia, Western Europe, Latin America, and neighboring Baltic countries; despite improved legislation, vulnerable to money laundering due to nascent enforcement capabilities and comparatively weak regulation of offshore companies and the gaming industry; CIS organized crime (including counterfeiting, corruption, extortion, stolen cars, and prostitution) accounts for most laundered proceeds
growing producer of synthetic drugs; increasingly important transshipment zone for cannabis, cocaine, opiates, and synthetic drugs since joining the European Union and the Schengen Accord; potential money laundering related to organized crime and drug trafficking is a concern, as is possible use of the gambling sector to launder funds; major use of opiates and ecstasy
Refugees and internally displaced persons
stateless persons: 209,167 (2020); note - individuals who were Latvian citizens prior to the 1940 Soviet occupation and their descendants were recognized as Latvian citizens when the country's independence was restored in 1991; citizens of the former Soviet Union residing in Latvia who have neither Latvian nor other citizenship are considered non-citizens (officially there is no statelessness in Latvia) and are entitled to non-citizen passports; children born after Latvian independence to stateless parents are entitled to Latvian citizenship upon their parents' request; non-citizens cannot vote or hold certain government jobs and are exempt from military service but can travel visa-free in the EU under the Schengen accord like Latvian citizens; non-citizens can obtain naturalization if they have been permanent residents of Latvia for at least five years, pass tests in Latvian language and history, and know the words of the Latvian national anthem
stateless persons: 73,214 (2020); note - following independence in 1991, automatic citizenship was restricted to those who were Estonian citizens prior to the 1940 Soviet occupation and their descendants; thousands of ethnic Russians remained stateless when forced to choose between passing Estonian language and citizenship tests or applying for Russian citizenship; one reason for demurring on Estonian citizenship was to retain the right of visa-free travel to Russia; stateless residents can vote in local elections but not general elections; stateless parents who have been lawful residents of Estonia for at least five years can apply for citizenship for their children before they turn 15 years old
