Badme is still a sticking point in the peace process

The Security Council said Eritrea was still restricting the UN peacekeeping mission's movements.

And it said Ethiopia's rejection of a border demarcation settlement heightened regional tension.

Ethiopia has rejected a 2002 world court ruling giving Eritrea the town of Badme, where a border war started.

The statement said the actions of the two countries presented serious questions over the long-term viability of the 4,000-strong UN peace force, which patrols the border zone.

An 18-month border war ended in June 2000 after tens of thousands of soldiers had been killed.

Following Ethiopia's rejection of the border ruling, there were fears that the war could reignite last year.