In response to reports of espionage, Paraguay announced on Tuesday its decision to recall its ambassador from Brazil, following admissions from Brazilian authorities that their intelligence agency had spied on Paraguayan officials in 2022. Furthermore, Paraguay also decided to halt discussions with Brazil concerning the massive hydroelectric project, Itaipu Dam, which is jointly managed by the two countries.
The revelation of these espionage activities unfolded when Brazil’s foreign ministry divulged that the administration under former President Jair Bolsonaro was behind the operations targeting Paraguay. However, the current government under Luiz Inácio Lula da Silva has stated that it ceased all surveillance activities targeting Paraguay once they were brought to light, though specifics on the espionage or the parties involved have not been disclosed.
According to reports from local media, Brazilian intelligence allegedly breached Paraguayan computer systems in an effort to extract sensitive information concerning tariff negotiations pertaining to the Itaipu Dam, which both countries share.
On the previous day, Paraguay declared its intention to temporarily stop negotiations with Brazil related to the cost of power generation at the Itaipu facility, pending a full investigation into the espionage affair initiated by Brazil. The Paraguayan Foreign Ministry is delving into events that occurred between June 2022 and March 2023 when the alleged spying took place during Bolsonaro’s presidency.
Paraguay’s Foreign Minister, Rubén Lezcano, expressed strong condemnation of the incident, citing it as a breach of international law and an unacceptable intrusion into the nation’s internal matters. “We are under constant attack, and the ministry is taking all necessary steps to defend our confidential information,” Lezcano detailed to the press. Beyond recalling its ambassador, Paraguay has demanded a formal explanation from the Brazilian ambassador concerning the cyber-spying activities.
While Paraguay’s actions indicate a significant diplomatic response, it does not signify a complete severance of relations, as Brazil’s Embassy in Paraguay will continue its operations. Nevertheless, this incident has resurfaced historical tensions between the neighbors that trace back to Brazil’s military conflict with Paraguay in the 1860s, a tragic period when Paraguay suffered territorial and demographic losses.
The Itaipu Dam remains a point of contention within Paraguay, with citizens seeing the original treaty terms as unjust. Paraguyans feel aggrieved, particularly over stipulations that require Paraguay to pass on any unused energy to Brazil instead of selling it to other nations, perceiving this as an encroachment on their national sovereignty.