Ethiopia has complied with a UN demand to withdraw troops from its tense border with Eritrea, but Eritrea has not lifted restrictions on peacekeepers as ordered, a UN report says.

The report by Kofi Annan, the UN secretary-general, on the confrontation made no reference to sanctions, a move mooted in a Security Council resolution in November, if the two countries did not scale down troop presence at the frontier by 24 December.

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