Negotiations on border dispute remained at standstill, but Ethiopian and Eritrean involvement heightened fears of proxy war in Somalia.

Blow to border dispute resolution as Eritrea refused to attend Boundary Commission meeting in The Hague 15 June, citing Ethiopia’s failure to implement 2002 agreement. 111 Ethiopian People’s Patriotic Front rebels, allegedly from Eritrea, reported killed by Ethiopian forces; Asmara denied reports. UN report found Eritrea providing military support for Somali-based insurgents attacking Ethiopia and for groups linked to Somali Islamic Courts militia.

UN extended UNMEE peacekeeping mandate for 4 months 31 May but nearly halved number of authorised troops, after Boundary Commission talks 18-19 May in London failed to break deadlock. Ethiopia dropped longstanding precondition of further negotiation before border demarcation can start, demanding instead Eritrea withdraw militias from Temporary Security Zone.

UN Security Council extended UNMEE mandate for 1 month and agreed to decide mid-May whether to scale back mission if sides fail to comply with UNSC demands. International Boundary Commission London meeting with Ethiopia and Eritrea set 28-29 April postponed for month due to ill health of commission head.

Little progress in resolving border dispute despite talks between Eritrea, Ethiopia and Boundary Commission in London. Ethiopia pushed its November 2004 peace proposal that states parts of Commission’s 2002 ruling require further discussion, while Eritrea rejected calls for new talks. UN Security Council extended UN mission mandate to 15 April to give parties more time to resolve differences. Eritrea expelled 3 international aid agencies, saying had not met operational permit requirements.

Situation remained tense along disputed border with troop movement reported on both sides. UN Security Council agreed 8 February to give U.S. 30 days to resolve border dispute before considering troop redeployment. Witnesses of 2000 Algiers Agreement (Algeria, AU, EU, UN, U.S.) met 22 February in attempt to expedite border demarcation process but Asmara refused to work with independent boundary commission to resolve dispute. Eritrea arrested 27 local UN mission staff; 25 later released but no official reason given for arrests.

Tensions along disputed border eased as Ethiopia reduced force levels, but Eritrean restrictions on movement of UN peacekeepers remained in place. High- level U.S. mediation team arrived Ethiopia 19 January in effort to move border dispute forward; visit to Eritrea cancelled after access to border area refused. Eritrea accused U.S. of bias towards Ethiopia; agreed early January to accept December Claims Commission ruling that blamed it for starting 1998-2000 war.

Situation along border remained volatile. Tensions exacerbated after Eritrea ordered UN mission (UNMEE) troops from Canada, Europe and U.S. to leave 7 December. UN Security Council announced temporary evacuation of 180 UNMEE staff after Eritrean President Afewerki refused to meet UNSG envoy seeking to negotiate settlement. UN confirmed Ethiopia had moved some troops back from border 23 December, but neither side fully complied with November UN resolution calling for de-escalation. International Claims Commission ruled Eritrea started 1998 war and liable for damages caused to Ethiopia.

Border tensions continued to rise with high concentrations of troops deployed on both sides. Ethiopian soldiers breached demilitarised zone, withdrawing 23 November. UN Security Council passed resolution threatening sanctions if sides failed to reduce troop numbers and if Eritrea refused to lift restrictions on UNMEE monitors, including ban on helicopter flights; also called on Ethiopia to respect boundary commission ruling on border demarcation, but did not threaten punishment. Eritrea dismissed resolution as biased.

Serious risk of return to conflict led to calls for urgent international action. Eritrea banned UN monitoring mission (UNMEE) from conducting helicopter flights, night patrols and restricted movement to main roads, in move to pressure Ethiopia to accept 2002 Boundary Commission ruling. UNMEE announced withdrawal of peacekeepers from 18 of 40 monitoring posts, as ban limited ability to police border. In Ethiopia, parliament voted to lift immunity of opposition MPs who boycotted first session since disputed May polls; police later arrested over 50 opposition supporters and MPs in separate incidents.