In a statement on Sunday, the Algerian Foreign Ministry said the statements have an improper manner as the action was based on political differences between the two countries.

The step taken by Algeria will not affect is commitments towards the EU, the ministry added.

The ministry also stressed Algeria's commitment to natural gas supply deals with Spain.

On Friday, the European Union said “The decision taken by Algeria to suspend the treaty of friendship and good neighborly relations signed with Spain in 2002 is of utmost concern".

"We are assessing the implications of the Algerian actions, including the instruction given to the financial institutions to stop transactions between the two countries, which upfront appear to be in violation of the EU-Algeria Association Agreement, in particular in the area of trade and investment. This would lead to a discriminatory treatment of an EU Member State and adversely affect the exercise of the Union's rights under the Agreement."