The economy of Latvia is similar to the model in Russia. Oligarchs with connections to the Russian security services are rich from receiving state assets. Almost everyone else is poor.

Additionally, in the early 1990′s, Latvia became an offshore banking center under the guidance of KGB man Grigori Loutchansky who had a close relationship with Russian Prime Minister Viktor Chernomyrdin.

This early cooperation between the Latvian government and the KGB kicked off a racket for Latvian politicians that is still continuing.

http://www.lawlesslatvia.com/2014/06/united-states-senate-briefing/