The demography of the Baltic states changed significantly following World War II, as the former Soviet Union (FSU) encouraged Russians to migrate to its western borders. By 1991 only half of Latvia’s population consisted of ethnic Latvians as large numbers of Russians and others settled in the country. In Estonia the proportion of non-Estonians tripled from 1934 to 1989, when it reached 38 percent. When they regained their independence in 1991, Estonia and Latvia sought to reverse this trend. Both governments decided to limit citizenship to those who had been citizens prior to 1940, the year the FSU had occupied Estonia, and to their spouses and descendants.

The citizenship legislation is not based on ethnicity. In Estonia it enfranchised some 80,000 non-Estonians and disenfranchised many ethnic Estonians who had lived in the FSU in the period between the wars. Nevertheless, most Soviet-era settlers, most of whom are Russian-speakers, became noncitizens. Thus of the total population of 1.4 million people, about 300,000 do not hold Estonian citizenship. Resident noncitizens cannot vote in general elections, but are allowed to vote in municipal elections. This has resulted in the formation of Russian-speaking political parties that can articulate and defend the interests of the Russian community.

Throughout the 1990s, Western countries criticized Estonia’s legislation in connection with noncitizens’ rights. In 1999 the European Union recommended that Estonia amend a controversial 1995 language law that mandated the use of Estonian as the country’s official language.

As of January 2001 visa requirements for those traveling to Russia were extended to noncitizens of Estonia (and Latvia). This will probably speed up noncitizens’ adoption of either Russian or Estonian citizenship, as like Latvia, Estonia prohibits dual nationality. The authorities assume that about half of the 300,000 holders of Estonian "aliens passports" will apply for citizenship. For the remainder this would complicate travel to Russia, with which most of them have personal or business ties.

The number of noncitizens in Latvia fell from around 700,000 in 1991 to 570,000 in early 2001. Naturalization procedures were included in the requirements for citizenship and were subsequently amended throughout the 1990s in an effort to integrate noncitizens. Noncitizens cannot run or vote in local or national elections, and initially were not permitted to work for the civil service (a restriction that was later reversed on the condition that they become naturalized within a year). Naturalization requires proficiency in the local language. A 1999 language law confirmed Latvian as the only state language and encouraged its use; a controversial move because Russian-speakers are heavily engaged in business activities. Nevertheless, naturalizations have been slow. International observers estimate that around 300,000 noncitizens, or nearly half the total, mainly the elderly and those who cannot speak Latvian, will never apply for citizenship.