German chemicals group BASF and Russia's Gazprom have abandoned a gas assets swap deal planned for this year as companies across Europe continue to suffer from growing tensions between Moscow and the West.

Relations between Russia and Western countries have deteriorated rapidly over the conflict in Ukraine, which has led to sanctions on both sides and hurt Western companies with business interests in Russia.

The swap deal would have given Russia greater access to gas trading and storage in Germany, in return for BASF's oil and gas unit Wintershall getting more stakes in Siberian gas fields.

'Due to the currently difficult political environment, BASF and Gazprom have decided not to complete the asset swap,' BASF said.

Under the deal, Wintershall would have transferred a jointly operated natural gas trading and storage business fully to Gazprom.

It would have also received a 50 per cent share in Wintershall Noordzee BV, which explores for and produces oil and gas in the North Sea.-Reuters