Which action has not the baltic states transform their economies? privatizing industries encouraging foreign investment increasing trade with russia increasing trade with europe

The correct answer is - increasing trade with Russia.

Increasing trade with Russia is not a step that was made by the Baltic states in order to improve their economies, instead they started to focus more and more on increasing the trade with the EU. Of course, they do have significant trade with Russia because they are neighbors and Russia has lot of natural resources, but they have tried to balance it in order to not be totally dependent by them.