Speaking to reporters after meeting his Latvian counterpart Aigars Kalvitis in Riga, Sanader said he expected the two countries to sign a deal on the construction of ten tankers for a Latvian client.
The project, which is still being negotiated, has the full support of the Croatian government, Sanader said.
Earlier in the day, Sanader's deputy Polancec attended a Croatian-Latvian economic forum, organised by the Latvian chamber of the economy.
Polancec told reporters he was very pleased with the interest demonstrated by Latvian business people, but that he was dissatisfied with the level of bilateral trade.
In the first nine months of this year, trade between the two countries amounted to four million US dollars, Polancec said, adding that only two Croatian companies had offices in Riga.
PM Kalvitis said Latvia supported Croatia on its road to the EU and expected Croatia to become a full member by 2009. He added that Latvia also supported Croatia's membership in NATO.
Relations between Latvia and Croatia are very good and continue to develop, Kalvitis said. The two countries cooperate closely in many areas, including European integration, and have very dynamic bilateral relations, particularly in recent years, Kalvitis said, adding that Croatia was becoming an increasingly popular tourist destination for Latvians.
Sanader, who is on a two-day official visit to Riga, thanked the Latvian prime minister for support to Croatia's efforts to start accession talks with the EU. He added that Croatia was also interested in Latvia's experience in EU entry talks and implementation of reforms.
Croatian Culture Minister Bozo Biskupic, who is a member of the Croatian delegation visiting Latvia, reached agreement with his Latvian counterpart on a programme of intensive cultural cooperation.