Spain and Algeria have formally ended a diplomatic rift that began in 2022, with both nations signing a new agreement to enhance cooperation, particularly in the energy sector. The reconciliation was sealed during a meeting between Spanish Prime Minister Pedro SΓ‘nchez and Algerian President Abdelmadjid Tebboune in Algiers on July 19, 2026.
The agreement focuses on resuming and expanding natural gas supplies from Algeria to Spain, which were disrupted after Spain shifted its position on Western Sahara in 2022. Algeria, a key gas supplier to Europe, had suspended the Treaty of Friendship and Cooperation with Spain, leading to a freeze in bilateral trade and energy talks.
Under the new pact, both countries commit to restoring diplomatic relations to pre-crisis levels and establishing a joint committee to oversee energy cooperation. Algeria's state-owned Sonatrach will prioritize gas exports to Spain, while Spanish companies will be encouraged to invest in Algerian energy infrastructure.
Analysts note that the rapprochement is driven by Europe's need to diversify energy sources following the Russia-Ukraine conflict. Spain, which relies on Algeria for about 30% of its natural gas imports, stands to benefit from stable supplies. The deal also includes provisions for renewable energy projects, such as solar and wind, in Algeria.
The reconciliation marks a significant shift in North African geopolitics, with both sides emphasizing mutual economic benefits. However, the Western Sahara issue remains a sensitive topic, with Algeria maintaining its support for the Polisario Front, while Spain has not altered its stance on the region's autonomy plan.
