Disputes - international: Lithuania and Russia committed to demarcating their boundary in 2006 in accordance with the land and maritime treaty ratified by Russia in May 2003 and by Lithuania in 1999; Lithuania operates a simplified transit regime for Russian nationals traveling from the Kaliningrad coastal exclave into Russia, while still conforming, as a EU member state having an external border with a non-EU member, to strict Schengen border rules; the Latvian parliament has not ratified its 1998 maritime boundary treaty with Lithuania, primarily due to concerns over potential hydrocarbons; as of January 2007, ground demarcation of the boundary with Belarus was complete and mapped with final ratification documents in preparation
Illicit drugs: transshipment and destination point for cannabis, cocaine, ecstasy, and opiates from Southwest Asia, Latin America, Western Europe, and neighboring Baltic countries; growing production of high-quality amphetamines, but limited production of cannabis, methamphetamines; susceptible to money laundering despite changes to banking legislation