Karosta was constructed in 1890-1906 as a naval base for the Russian Tsar Alexander III, and later served as a base for the Soviet Baltic Fleet. When the Russian army left Latvia in 1994 after Latvian independence, Karosta became largely uninhabited and most structures fell to ruin. In the late 1990s, the area was troubled by high unemployment, street crime and drug problems. Some remaining residents are considered neither Latvian nor Russian and hold alien passports.