The European Union has closed down its office in Hargeisa, the capital of Somali self-declared state of Somaliland.
The union also ordered its staff out from the unrecognized break away Northern republic of Somalia region.
It is not immediately clear what precipitated the move but according to self-declared state foreign minister Mohamed Yunis Bihi, financial constraint is the reason behind closure of the key office in Hargeisa.
Main opposition parties in the self-declared state have refuted the authorities claim saying political issues such as extension of the election period has resulted European Union to take decision.
European Union which is significant supporter of Somali federal government has its main office in the capital Mogadishu.