Paraguay Recalls Ambassador Amid Espionage Accusations Against Brazil

Paraguay has recalled its ambassador to Brazil in response to revelations of Brazilian espionage against Paraguayan officials during tariff negotiations concerning the Itaipu dam. While Brazil's current administration claims to have ended these activities, Paraguay demands clarification and suspends ongoing talks over the hydroelectric facility.

In a diplomatic escalation, Paraguay has recalled its ambassador to Brazil following acknowledgments of Brazilian espionage activities targeting Paraguayan officials in 2022. The revelation surfaced that this operation, initiated under the administration of Jair Bolsonaro, was designed to gain leverage over tariff negotiations for the Itaipu dam.

The Itaipu dam, a significant source of hydropower straddling the Brazil-Paraguay border, has been the crux of Paraguay's demands for equitable energy distribution. Brazil's infiltration into Paraguayan computer systems, allegedly to gather sensitive information, has reignited historical tensions between the two nations.

Although Lula's government claims to have ceased these unauthorized surveillance activities, Paraguay remains firm on pausing negotiations over the Itaipu dam. The situation highlights the fragile diplomatic ties and underscores the latent disputes over shared resources and territorial sovereignty.

(With inputs from agencies.)