The Permanent Court of Arbitration in The Hague has ordered Eritrea to pay neighbouring Ethiopia seven million euros in compensation for damage inflicted on each other during the war between 1998 and 2000.

The court actually ordered both countries to pay each other compensation, but ruled that Eritrea must pay 123 million euros: seven million more euros than Eritrea will receive from Ethiopia. The international tribunal said it specified the extra money because Eritrea had begun the conflict. Both countries have agreed to the ruling.

Analysts say the compensation awarded bears little relation to the actual damage wreaked during the war, which left approximately 70,000 people dead.

Although the Algiers Peace Agreement brought the fighting to an end in 2000, both countries still keep troops stationed on their side of the border. The exact course of the border between the two countries has never been fully determined.

Flags of Ethiopia and Eritrea from Wikimedia Commons