Estonia–Latvia relations Estonia–Latvia relations Estonia and Latvia, the two northernmost Baltic states, share 343 km of common borders. Both states share a long common history, having since the 13th century been ruled by the Livonian Order, Poland-Lithuania, Sweden and finally, until achieving independence in 1918, the Russian Empire. They were both re-occupied by the USSR between 1945 and 1991. Both countries reestablished diplomatic relations on January 3, 1992. Estonia has an embassy in Riga. Latvia has an embassy in Tallinn. Both countries are full members of the Council of the Baltic Sea States, NATO and the European Union. The two countries were
Economy of Estonia for Latvia. Estonia today is mainly influenced by developments in Finland, Russia, Sweden and Germany – the four main trade partners. The government recently greatly increased its spending on innovation. The prime minister from the Estonian Reform Party has stated its goal of bringing Estonian GDP per capita into the top 5 of the EU by 2022. However, the GDP of Estonia decreased by 1.4% in the 2nd quarter of 2008, over 3% in the 3rd quarter of 2008, and over 9% in the 4th quarter of 2008. The Estonian economy further contracted by 15.1% in the first quarter of