The UN Security Council today toughened its sanctions against Eritrea after the East African country was accused of supporting militants in neighbouring Somalia.
Foreign companies involved in Eritrea’s mining operations must now ensure funds from the sector do not end up in the hands of militants.
The Security Council resolution had been watered down after objections by Russia and China.
Some European countries also expressed concern the impact sanctions would have on ordinary Eritreans.
"Eritrea is a prime source of instability for the whole region," said Ethiopian Prime Minister Meles Zenawi.
"It's a problem of attitude, of a certain clique in Asmara that has never grown up; it's a problem of lawlessness and reckless disregard for international norms."
Eritrea had denied the allegations and reacted with outrage to the sanctions.
“The peoples of Eritrea, Ethiopia and the region will undoubtedly pay the price for this continued misguided policy, but the Eritrean people will prevail, as they prevailed in the past” a statement from Eritrean Foreign Ministry stated.
The Council passed the resolution with 13 votes in favour and two abstentions from China and Russia.