By Belén Carreño and Inti Landauro

MADRID, Reuters – The Spanish government is determined to defend its national interests following Algeria’s 20-year-old treaty for friendship and cooperation. It also banned all trade other than gas with Spain. This move was also alarming Brussels.

Jose Manuel Albares, Spain’s Foreign Minister said that on Thursday Spain was monitoring the gas flow from Spain’s second largest supplier after the United States. However these flows were not affected by diplomatic disputes over Madrid’s position on Western Sahara.

Nabila Massrali (European Commission foreign affairs spokesperson) told reporters Algeria’s decision to strike was “extremely alarming” and asked them to examine it with Spain in order to find solutions.

The Algerian banking association has stopped payments to Spain on Wednesday. According to Algerian sources this affects all trade, except gas supplies.

Albares said to reporters that “we are analysing its reach and the nation and European consequences of this measure in a tranquil, constructive way but also with firmness and defense of Spain and Spanish companies.”

Spanish exports to Algeria consist of iron, steel, machine, paper products and fuel, and service exports such as construction, banking, and insurance.

Spanish energy giants Naturgy (OTC:), Repsol (OTC 🙂 and Cepsa signed agreements with Sonatrach the Algerian state gas company.

Abdelmadjid Tebboune the Algerian president has said that he wouldn’t break the supply contract because of this row. Sonatrach has been contacted by Reuters for comment.

Spain’s Energy Minister Teresa Ribera expressed confidence in Sonatrach, while acknowledging that this diplomatic and trade dispute comes at an awkward time when the price of 10-year supply contracts is being reviewed by the parties.

In light of Russia’s invasion of Ukraine, North African gas supply to Europe has become more important.

WESTERN SAHARA SIMMERS

Spain’s March statement that it was supporting a Moroccan plan for autonomy for Western Sahara angered Algeria. Algeria is backing the Polisario Front, seeking total independence for the territory. Morocco views Algeria as its sovereign.

In 2020, almost three decades after the ceasefire was signed, conflict flared up again. Algiers decided to end diplomatic ties last year with Rabat. It also decided to not extend a gas export agreement via a pipeline that runs through Morocco to Spain, which provided nearly all Morocco’s natural gas supplies.

Now supplies are using only 25% of Spain’s remaining subsea pipe and vessels, a drop from almost half a decade earlier.

The treaty between Algeria and Spain also included a commitment by both parties to work together in managing migration flows. There are fears that Algiers could be tempted to loosen its border controls to allow for an increase of Spanish arrivals, just like the diplomatic dispute with Morocco.

It could also pose problems for NATO or the European Union.

Spain is hosting a NATO summit. Albares stated that Spain would push for “hybrid dangers” like irregular migration to be included in the NATO’s new policy roadmap.

Fernando Grande-Marlaska, Interior Minister, expressed optimism that the conflict would not affect its security cooperation or illegal migration flows.

In recent years, the numbers of Algerian migrants arriving in Spain have increased. After around 2,400 migrants from Algeria arrived by 164 boats in Spain’s Balearic islands in 2021 (five times as many than 2019), police in Spain had to improve their screening procedures.

Spanish police reported that Wednesday saw 115 migrants undocumented arrive in Balearic Islands, with 104 being Algerians.

“Further actions (by Algeria), cannot be ruled out, but will depend upon the demands of the parties,” said Haizam AmirahFernandez. He is a senior analyst in the region at El Cano think tank in Madrid and calls for a U.N.-mediated resolution to the Western Sahara issue.