Brazil engages in talks with Paraguay to defuse crisis over espionage
Brazil’s Ministry of Foreign Affairs is working to ease tensions with Paraguay following reports that the Brazilian Intelligence Agency (Abin) conducted a hacking operation to access confidential information from Paraguayan officials involved in negotiations over the binational Itaipú power plant.
The case prompted the Paraguayan government to summon its ambassador to Brazil, as well as the Brazilian ambassador in Asunción, for clarification—a diplomatic move that signals formal discontent between the two countries.
“We deeply regret what happened. The information we have at this point is what’s stated in the official note [from the Ministry of Foreign Affairs]. There was a program that began under the previous administration and ended under the current one. And it would never occur to us to spy on a friendly country. The institutions involved are conducting their internal investigations—including into the regrettable leak to the press. Investigative processes should not play out in the media, ” said Brazilian ambassador Gisela Padovan, Secretary for Latin America at the Ministry of Foreign Affairs, in a press interview on Thursday (Apr. 3).
Abin’s alleged monitoring took place between June 2022 and March 2023 and was first reported by the UOL news website. In an official statement issued on Monday (31), the Brazilian government acknowledged that the operation originated under former president Jair Bolsonaro’s administration and was halted as soon as the current administration became aware of it.
“The Ministry of Foreign Affairs has absolutely no involvement in this matter, and we are working closely with our Paraguayan counterparts to ensure that it does not hinder the strong, deep, and historic relationship we share with Paraguay. We are currently awaiting information from the relevant authorities,” Padovan added.
Suspension
Paraguay announced the suspension of negotiations on the revision of Annex C of the Itaipú Treaty, the binational hydroelectric plant built and jointly operated by both countries. The annex addresses the pricing of surplus energy generated by the plant and sold by Paraguay to Brazil. The two countries continue to disagree over the terms of these adjustments.
