A second round of Turkish-mediated talks between Somalia and Ethiopia over a controversial port deal signed by Addis Ababa with Somaliland concluded without a final agreement on Tuesday, but both sides reported progress.

The negotiations, held in Ankara, have been an attempt to mend strained relations between the East African neighbors. Tensions escalated in January after Ethiopia agreed to lease 20 kilometers (12 miles) of coastline from Somaliland, a breakaway region of Somalia, in exchange for recognizing its independence.

Somalia, which considers Somaliland part of its territory, declared the deal illegal, prompting Mogadishu to expel the Ethiopian ambassador and threaten the expulsion of thousands of Ethiopian troops stationed in Somalia to assist in the fight against Islamist insurgents.

During the talks in Ankara, the Ethiopian and Somali foreign ministers did not meet directly. Instead, Turkey’s Foreign Minister Hakan Fidan facilitated the discussions by shuttling between the two delegations. Fidan expressed optimism, noting that the scope of the discussions had broadened significantly since the first round of talks.

Somalia’s Foreign Minister Ahmed Moallim Fiqi Ahmed echoed this sentiment, affirming that progress had been made.

He emphasized that Somalia is seeking a resolution consistent with international law and the United Nations Convention on the Law of the Sea.

A third round of talks is scheduled to begin on September 17, with the goal of achieving a sustainable and viable agreement that could resolve the diplomatic rift between the two countries.