| Disputes - international: | Russia refuses to sign the 1997 boundary treaty due to Latvian insistence on a unilateral clarificatory declaration referencing Soviet occupation of Latvia and territorial losses; Russia demands better Latvian treatment of ethnic Russians in Latvia; as of January 2007, ground demarcation of the boundary with Belarus was complete and mapped with final ratification documentation in preparation; 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 must implement the 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 Balkan 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 |
