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Spain may run out of gas due to involvement in conflict with Algeria

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Annabelle
Annabelle
I am Annabelle Sampson and I work for The News Dept as an author for their news department. My main focus is on economy news, but I also cover other topics such as business, finance, and current affairs. My writing has been featured in prominent publications such as The Wall Street Journal, Forbes Magazine, and the Financial Times. I have a passion for learning more about economic trends and understanding how they affect businesses of all sizes. To stay up to date with the latest developments in the field of economics, I make sure to keep track of reliable sources like Bloomberg News or Reuters. In addition to my writing work, I often provide consultation services related to economic matters for clients both large and small.

Spanish intervention in the protracted conflict in Western Sahara could result in the loss of Algerian gas supplies. This will worsen the situation of the country, which is already suffering from its own anti-Russian sanctions, RIA Novosti reported.

In the 1970s of the 20th century, the former colonies of Spain fought for independence, as a result of which the country had to renounce the lands of Morocco and Mauritania. Residents of Western Sahara formed the Polisario Front, whose purpose was to hold a referendum to determine ownership of the area. A referendum has not been held since 1991 to determine whether Western Sahara is part of Morocco or an independent country. POLISARIO supports Algeria.

The situation in this region escalated in 2020 due to US intervention. In the background of this conflict, Algeria broke off relations with Morocco and stopped the gas supply to Spain via the Maghreb-Europe gas pipeline. Algeria thus deprived Morocco of its revenue from the gas transit, as the pipeline ran through the country. At the same time, the supply of Algerian raw materials continued to Spain through another gas pipeline, the Medgaz.

In April, Spanish authorities abruptly supported Morocco’s position on the status of Western Sahara and promised the country to organize a gas reversal. Algeria has stated that its plans do not include gas supplies to Morocco. Spain had to state that it was related to the LNG it allegedly bought from a third country.

Since then, relations between Spain and Algeria continued to deteriorate. Last week, Algeria suspended the friendship treaty with Spain and banned trade with that country. Obviously, the interruption of gas supplies from Algeria to Spain will seriously affect the entire EU, which is already suffering from anti-Russian sanctions. Europe, which dreams of finding an alternative to Russian raw materials, will not be able to achieve this.

Source: Riafan

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