By Reuters Staff

       2 Min Read

       ALGIERS/MADRID (Reuters) - Algeria has suspended its 20-year-old treaty of friendship, good neighbourliness and cooperation with Spain, upping the ante after months of tensions over Madrid’s shift closer to Morocco’s position on the conflict in Western Sahara.

       No reason was given for the decision by Algeria’s top security council. It was reported by Algerian state media on Wednesday and confirmed by Spanish diplomatic sources, who said the Spanish government regretted the decision and reaffirmed its commitment to the content and principles of the treaty.

       “The Spanish government considers Algeria a neighbouring and friendly country and reiterates its full availability to continue maintaining and developing the special relations of cooperation,” said one diplomatic source.

       In April, the Algerian-backed Polisario Front, Western Sahara’s independence movement, said it was severing ties with Spain after Madrid backed Morocco’s plan giving autonomy to the former Spanish colony.

       Algeria is a key gas supplier to Spain, and is expected to review prices for any new gas contract with Spanish firms, a source familiar with the matter told Reuters.

       The current gas contract with Spain is long-term with prices well under the current market level, the same source, who asked not to be identified, told Reuters.

       Appearing in parliament earlier on Wednesday and asked by the opposition to address the simmering diplomatic crisis with Algeria and potentially higher gas prices, Prime Minister Pedro Sanchez abstained from comment, only reiterating that the change of stance on Western Sahara was a serious and realistic step.

       Reporting by Enas Alashray and Belen Carreno; Writing by Lamine Chikhi and Andrei Khalip; Editing by Mark Heinrich

       Our Standards: The Thomson Reuters Trust Principles.