The spy scandal breaks out between Brazil and Paraguay via Itaipu Dam talks

A youngest spy scandal has intensified the long -term tensions between Brazil and Paraguay and thrown a shadow about the negotiations on the ITAIPU dam, an important hydropower device that is managed together by the two nations.

At the beginning of April 2025, after reporting, Paraguay called for explanations from Brazil that the Brazilian secret service, Abin, had carried out in 2022 via Paraguaya officials about the monitoring of the Paraguaya officials.

In response to this, Paraguay reminded of his ambassador from Brazil and suspended the ongoing discussions in connection with the ITAIPU dam, which signaled a significant diplomatic crack between the two countries.

The ITAIPU dam since 1984 is a cornerstone of the energy supply for both Brazil and Paraguay. In 2024, the dam produced 67 million megawatt hours (MWh) of electricity, which was about 6% of Brazil and 80% of the Paraguay energy consumption.

In May 2024, both countries achieved a new agreement on energy tariffs and determined the interest rate at $ 19.28 per kilowatten month rate, which had a compromise between Paraguay's initial demand and Brazilian preference. This deal is expected to generate around 1.25 billion US dollars for Paraguay annually, whereby the funds for critical sectors such as education, healthcare and infrastructure are intended.

Despite the spy controversy, both nations had previously expressed an engagement for the review of the financial conditions of the ITAIPU contract. In January 2024, President Luiz Inácio Lula da Silva and Santiago Peña discussed future cooperation, including the structure of an integration bridge, to strengthen the commercial relationships.

At the same time, the ITAIPU dam has been enforced since its most important technological upgrade began. A consortium cited by GE Renewable Energy has started a 14-year project to modernize the equipment and systems of the system to improve efficiency and to support the region's energy transition targets.

The espionage incident has undeniably tense Brazil paraguay relationships, especially with regard to management and the advantages of the Itaipu dam. While both governments have shown the willingness to work together on energy and infrastructure projects, the reconstruction of trust will be of crucial importance for future negotiations.

Political commentator for international relationships, Latin American and southern Caucasus Current affairs Peter Tase In an interview with News.az Brazil confirmed that ex-President Bolsonaro spied on Itaipu Dam in Paraguay during the talks and highlighted a long history of exploitation and discrimination against Paraguay in energy, diplomacy and trade in Brazil.

“The government of Brazilian President Luiz Inacio Lula da Silva confirmed in mid -March that the predecessor of Lula, former President Jair Bolsonaro, spied on neighboring Paraguay. In particular, Bolsonaro, a military general, had ordered the Brazilian secret service agency to chop into the Paraguayan government computer systems in order to collect confidential information, while the two governments have re -negotiated energy tariffs and electricity prices from the ITAIPU dam. Paraguay was always mocked and discriminated against by the Planalto Palace every time there is negotiations on the administration of Geldern. Creates from the energy generation and the sale of excessive energy generated by the ITAIPU dam -a common hydropower plant on the Parana River, which forms the border of the two countries. “

After TaaseThe government of Paraguay is actively working with a congress delegation in the United States Congress in order to share critical knowledge into the long discriminatory policy of decades adopted by Brazil towards Paraguay: ”The two South American nations have always been in the spade about regional integration matters, including the administration of the ITAIPU dam. And economic and trade cooperation that damage Asunción and always prefer Brazilia. In contrast to his predecessor Mario Abdo Benítez, the President of Paraguay Santiago Peña Palacios has diligently defended, who was a scandalous and shameful corruption scandal in the public germs of over 250 million US dollars on scandalous and shameful corruption scandal. The secret bilateral agreement, organized by MAB and his MFA Luis Alberto Castiglioni Soria, continues to continue in the complex relationships of Brazil with Paraguay. Brazil treats Paraguay as one of his provinces and has held an attitude of cultural imperialism and economic imperialism against Paraguay since the early century, but with a growing malignant campaign against the national interests of Paraguay.

Itaipu Dam now offers higher sales because the debts to finance his construction was fully paid. However, Paraguay has not received any additional cash benefits in the past ten years. The Brazilian government decided in a very hideous behavior to resign his support for the candidacy of the Minister of Foreign Affairs from Paraguaya Darío Ramírez Lezcano as the new general secretary of the organization of the American states on March 10, 2025.“”

News.az