Paraguay has taken action due to allegations of espionage by Brazil. The Brazilian Ambassador Jose Antonio Marcondes has been recalled by Paraguay’s Ministry of Foreign Affairs to report on the “espionage activities” conducted against Paraguay in relation to the Itaipu hydroelectric power plant.

The statement also mentioned that negotiations concerning the Itaipu energy plant, which were supposed to be finalized by the end of May, have been suspended until Brazil provides clarification.

WHAT HAPPENED?

A news report by Brazil’s UOL media revealed that the country’s intelligence agency, Abin, attempted to infiltrate the computers of Paraguayan officials during negotiations about the Itaipu Hydroelectric Power Plant. The purpose was to gather information on the tax agreement of Itaipu, a binational venture between Brazil and Paraguay.

Following the news, the Brazilian government acknowledged that espionage activities against Paraguayan officials were conducted during the time of former President Jair Bolsonaro. However, Brazil stated in a statement on Monday that the operation was authorized by the Bolsonaro government but ceased immediately when the current administration noticed it in March 2023.

Moreover, the Brazilian Ministry of Foreign Affairs rejected allegations on Monday that the administration of former Brazilian President Luiz Inacio Lula da Silva was involved in intelligence operations.