Baltic Roundup: December 2023

December 2023

“Smoke Sauna Sisterhood,” a documentary directed by Anna Hints, focuses on a single location: a smoke sauna-cabin located in an Estonian forest. (Greenwich Entertainment)

Dear readers, 

As we welcome 2024, a look back at December in the Baltic states. And if you are still on vacation, consider adding ‘Smoke Sauna Sisterhood’ to your watch list.

SECURITY

Poland's national security agency estimated that Russia could attack NATO along its eastern flank in just three years, halving earlier estimates by the German Council on Foreign Relations. US President Joe Biden warned that a Russian victory in Ukraine could result in American troops fighting Russian troops in defense of NATO allies as he works to secure additional funding for Ukraine from Congress. 

Russia appears to be jamming GPS systems across the Baltic Sea region with more intensity. 

Lithuania and Germany agreed to a brigade deployment plan that will see some 5,000 German military personnel and civilians arriving in Lithuania over the next few years. 

Shifting from their previous abstentions on a call for a truce in October, Estonia and Latvia were among the 153 countries voting for a UN resolution calling for an immediate humanitarian ceasefire in Gaza on December 12. Lithuania was one of 23 countries that abstained. The US voted against the resolution.  

MIGRATION

Some 1,200 Russian citizens who failed to submit required residency documents may face deportation if they are unable to show valid reasons for staying in Latvia. For The New York Times, Andrew Higgins reported on recent changes to the immigration law from Riga and Daugavpils. Similarly, Lithuania's Seimas is considering amendments that would require foreign nationals looking to extend temporary residence permits to have some fluency in Lithuanian.

Estonia's Ministry of Economic Affairs and Communications wants to quadruple migrant worker quotas in response to a labor shortage, while business leaders cite Lithuania's flexible labor policies as a positive example. Lithuania's Minister of Interior Agne Bilotaite has argued the opposite, saying more migrant workers pose a threat to national security.  

And a devastating story of a Sri Lankan man who died on the Lithuanian-Belarusian border and his wife's efforts to find him.

ECONOMY

The Baltic countries took steps in response to high bank earnings and increases in interest rates. Lithuania passed a windfall profits tax on banks, while in Estonia, banks will pay higher dividends from increased earnings. Latvia passed measures to compensate mortgage loan holders to mitigate the impact of higher costs.

Lithuanians saw a slight deflation in December after a prolonged period of rising prices. Estonians can expect to see taxes rise, but family benefits decrease in the coming year. LSM summarizes legislative “near-certainties” for Latvia in 2024. 

Aitäh, paldies and ačiū,

Indra Ekmanis
Baltic Bulletin Editor

CALL FOR ARTICLES 
 

FPRI invites article contributions for the Baltic Bulletin. We are particularly interested in pieces covering NATO, support for Ukraine, cybersecurity, and domestic politics. We welcome pitches at iekmanis@fpri.org.

Catch up on recent episodes of the Baltic Ways podcast.
New episodes are coming in 2024!