Of course Putin's totalitarian regime affects the neighboring countries.Honestly I am not worried about democracy in Russia. First of all its the Russians problem, not mine.... It doesn't have any effect outside of the borders of Russia. Secondly, it's really doubtful if Russia is any less democratic than Europe in general and the USA in particular.
Putin's regime does not even fully recognize Baltic states.
Current Russian government policy is to create instability in "near foreign countries" or "Russian sphere of influence".
And they do it by spreading lies, half-truths and misinformation (many Russians in Latvia use Russian media (because they understand language better and Russian media can provide a lot more content than Latvian media) and easily become victims of their propaganda)...
And financing political parties and other groups hostile to countries they operate in.
Money for recent hate-mongering campaign (to sign petition for Russian to become official language in Latvia) also, probably came from Russia.
And of course - invasion in Georgia in 2008.