RIGA, May 19 (RIA Novosti) - Latvian Prime Minister Valdis Dombrovskis has said his country needs to strengthen its economic relationship with neighboring Russia.

In an interview with RIA Novosti, Dombrovskis said economic cooperation between the countries, which has been weak since the collapse of the Soviet Union, is a now priority for the Latvian government, but that Latvia has no plans to seek financial aid from Russia.

Latvia's economy has suffered the worst slump in the European Union since the onset of the economic crisis.

"I believe our relations are developing in a constructive direction. Now both sides are preparing for the next Latvian-Russian intergovernmental commission meeting. But I think the most important thing now is to step up economic cooperation between the countries. It is the economic issues on today's agenda that are the priorities - they were created by the crisis, and have brought their changes to everyday life," he said.

Dombrovskis, who took office in March, said that Latvia is now seeking a new loan tranche from the International Monetary Fund. In April, Latvia was refused a request for additional funds, as the country's budget deficit was over the limit set by IMF rules.

"We are now working on receiving another tranche from the IMF; there are only technical issues remaining," Dombrovskis said.