Somalia ruled out Thursday any possible mediation with Ethiopia unless Addis Ababa canceled a controversial agreement with the breakaway region of Somaliland.

Tensions in the Horn of Africa have escalated after landlocked Ethiopia reached a memorandum of understanding (MoU) with Somaliland on Jan. 1 that gives it access to the sea.

"There is no space for mediation unless Ethiopia retracts its illegal MOU and reaffirms the sovereignty and territorial integrity of Somalia," the country's Foreign Ministry said in a statement posted on its official social media accounts.

The comment comes after the African Union's conflict resolution body Wednesday discussed the crisis and called on the two countries "to exercise restraint, de-escalate and engage in meaningful dialogue towards finding a peaceful resolution of the matter."

East Africa grouping IGAD is also holding an extraordinary summit in Uganda on Thursday on the Ethiopia-Somalia feud, as well as the conflict in Sudan.

Somalia says its sovereignty and territorial integrity have been violated by the pact and has appealed for international support.

Under the Jan. 1 deal, Somaliland agreed to lease 20 kilometers (12 miles) of its coast for 50 years to Ethiopia, which wants to set up a naval base and a commercial port on the coast.

Somaliland is a former British protectorate facing the Gulf of Aden which declared its independence from Somalia in 1991, a move not recognized by the international community.