In May 2003, the Russian Parliament ratified the 1997 land and maritime boundary treaty with Lithuania, which ratified the treaty in 1999, legalizing limits of former Soviet republic borders; both states also implement a simplified transit regime for Russian nationals transiting Lithuania to and from the Russian Kaliningrad coastal enclave; the Latvian Parliament has not ratified its 1998 maritime boundary treaty with Lithuania, primarily due to concerns over oil exploration rights.

Transshipment point for opiates and other illicit drugs from Southwest Asia, Latin America, and Western Europe to Western Europe and Scandinavia; limited production of methamphetamine and ecstasy; susceptible to money laundering despite changes to banking legislation.