ULAN BATOR, March 28 (Xinhua) -- The inauguration ceremony of a project with a funding of 4.8 million euros (5.95 million U.S. dollars) from the European Union (EU) to promote Mongolia's trade was held here Wednesday.

The project aims to support the country's economic growth by increasing the exports of non-mining sectors, according to the Mongolian Ministry of Foreign Affairs.

"Under this project, the Mongolian government will support entrepreneurs by building a sound business environment and facilitating trade and exports," D. Davaasuren, state secretary of the Mongolian Ministry of Foreign Affairs said at the ceremony.

Mongolia's main trade partners are China, accounting for 70 percent of its total trade volume, Russia, representing over 10 percent, and the EU, taking up 11 percent, said Davaasuren.

"Our country is capable of exporting 7,200 types of goods on favorable terms to the EU members, but till now its potential has not been fully tapped. We hope the project will help solve this issue," he said.

He said the products exported from Mongolia to the European countries are at present limited to only a few types of wool, cashmere and handicrafts and that therefore Mongolia is aiming to diversify its exports.