The term 'Capital on the Baltic Sea' refers to two cities, Stockholm and Riga. Stockholm is the capital of Sweden and is located on the east coast of the Baltic Sea. It has a population of over 900, 000 people and is the largest city in the Nordic countries. Riga is the capital of Latvia and is located on the Gulf of Riga, which is part of the Baltic Sea. It has a population of over 700, 000 people and is the largest city in the Baltic states.