In late March, Brazil’s government confirmed that former President Jair Bolsonaro ordered the country’s intelligence agency to hack into Paraguay’s government systems.
This espionage occurred during sensitive negotiations over energy tariffs tied to the Itaipu Dam, a major hydroelectric facility shared by both nations.
Bolsonaro’s administration sought confidential information to gain leverage in discussions about electricity pricing after Paraguay’s debt on the dam was fully paid.
Brazil apologized and stated that the spying was stopped once President Lula da Silva took office, emphasizing the action was tied to the previous administration.
Paraguay’s President Santiago Pena reacted strongly, accusing Brazil of violating international law, recalling Paraguay’s ambassador, and suspending negotiations.
The incident has caused a diplomatic rift and threatens the future of the Itaipu Dam negotiations, which are critical for both countries’ energy and economic interests.