MOSCOW, April 7 (RIA Novosti) - South Sudan has resumed its oil production, ending a row over transit fees with Sudan - a breakthrough in relations between the neighbors after bloody clashes in 2012, media reported.

South Sudan, which had seceded from Sudan in 2011, suspended crude production in January 2012 saying Sudan was asking too much for transit. South Sudan is landlocked and depends on Sudan's ports for crude export. Both countries also depend on oil export revenues.

The two countries agreed at negotiations in the Ethiopian capital Addis Ababa in March to resume oil production and implement other agreements following months of talks, Al Jazeera reported Saturday.

Tensions on the border between the two states intensified after South Sudan gained independence in a referendum in 2011. Sudan lost 75 percent of its known oil reserves after South Sudan became an independent state.

Following border clashes, Sudan and South Sudan agreed last year to establish a buffer zone along their border to avoid a large-scale war.