Thursday’s announcement came a day after the North African nation suspended a 20-year treaty of friendship with Spain, which committed the two sides to working together to control migratory flows. Algeria has also banned imports from Spain. The European Union has urged Algeria to reverse its decision, pushing for dialogue to resolve the dispute. Spain was the former colonial power in Western Sahara until the region was annexed by Morocco in 1975. Since then, Algeria and neighboring Morocco have had strained ties to the fate of Western Sahara, at one point fighting a desert war. Algeria has long supported the Polisario movement, which seeks independence for the region, claimed by Algeria’s neighbor and rival Morocco. Spanish Foreign Minister Jose Manuel Albaras said on Thursday that Spain’s response to Algeria’s move to suspend bilateral trade would be “peaceful, constructive, but also steadfast in defending Spanish interests.” Algeria’s now openly hostile turn against a European Union member comes as Spain and the rest of the 27-nation bloc rush to find alternatives to Russian energy imports to protest Russia’s war in Ukraine.

“Extremely anxious”

In March, Spain publicly acknowledged Morocco’s plan to grant the region autonomy instead of full independence, resolving the dispute with Rabat but angering Algeria. At that time, Algeria recalled its ambassador to Spain. In its most recent move, Algeria threatened trade ties, including the continued supply of Algerian gas. This in turn could complicate the EU’s wider ties with Algeria, with EU Foreign Affairs spokeswoman Nabila Massrali saying Brussels was “extremely concerned”. “Algeria is an important partner of the European Union in the Mediterranean [region]”and a key factor for regional stability,” said Massrali. “We would ask the Algerian party to take another look at this decision,” he said, urging Algeria and Madrid to work through diplomatic channels to resolve the dispute. Jihane Boudiaf, senior financial and risk analyst at S&P Global Market Intelligence, said the controversy was putting Spain in a difficult position. “This will be mainly problematic for Spain, because Algeria is Spain’s third largest customer. “So when it comes to things like agri-food or processed products, it will be a serious blow to Spanish exporters,” Boudiaf told Al Jazeera.

Gas supply

Morocco controls 80 percent of Western Sahara. The rest is held by Polisario, who fought for 15 years with Morocco after the withdrawal of Spanish forces in 1975 and wants a referendum on independence. Morocco has offered limited autonomy, but insists the fishery-rich pocket must remain under its control. Spain formally approved the post in March to help resolve a year-long diplomatic dispute that sparked a visit by Polisario leader Brahim Ghali to Spain for treatment for COVID-19. Weeks after his hospitalization, Moroccan border guards looked the other way, as more than 10,000 migrants stormed the tiny North African enclave of Ceuta, Spain. In April, Sanchez paid an official visit to Morocco to improve ties, after his government backed Rabat’s autonomy plan in 2007. Algiers said on Wednesday that Madrid “gave its full support to an illegal and illegal formula… backed by the occupying power”.

“It did not cause any difficulties”

Spain’s position is complicated because while it shares borders and strong economic ties with Morocco, it also depends in part on Algeria for gas. The Spanish government has moved quickly to allay fears that Algeria’s substantial gas supply, which it pumps and transports to the Mediterranean, could be jeopardized. Spanish Foreign Minister José Albares said that so far no Spanish company cooperating with Algeria had reported any “inconvenience”. He added: “What the gas companies are telling us is that the decision has not caused any difficulties.” Algeria’s Sonatrach was Spain’s largest gas supplier last year with more than 40 percent of its imports. Teresa Ribera, Spain’s energy minister, said state-owned Sonatrach was expected to suspend the deal. “We do not believe that the contracts can be broken unilaterally by the decision of the Algerian government,” Ribera told Onda Cero radio. Coinciding with the disintegration of relations with Algeria, Spain has since turned to the United States, which became the leading supplier of natural gas in recent months before Algeria. Algeria, whose fragile economy is heavily dependent on energy exports, signed a new agreement with Italy in April to increase gas flow through the pipeline connecting the two countries.