Algeria to build and diversify energy and other ties

Significance

Algeria’s traditional foreign policy of non-alignment has been tested by Russia’s invasion of Ukraine. It is performing a delicate balancing act, preserving close political and military ties to the Kremlin but exploiting European -- and now US -- interest in its hydrocarbon reserves as states look for alternative energy sources.

Impacts

• Algeria will seek more EU investment in petrochemicals and automotive.
• European companies will dominate upcoming solar capacity tenders.
• The United States may expand ties with Algeria to draw it away from Russia.
• Algiers will become more assertive within the African Union and the Arab League.