Date first published: 15/04/2025
Key sectors: energy; infrastructure
Key risks: business risks; economic risks; frustration of process; regulatory changes
Risk development
On 1 April Paraguay suspended negotiations with Brazil over the Itaipu Dam after it was revealed that Brazil’s intelligence agency (Abin) had spied on Paraguayan officials. The cyber espionage operation, carried out under former president Jair Bolsonaro and continuing into the early months of Luiz Inacio Lula da Silva’s administration, aimed to access information related to the renegotiation of Annex C of the treaty, which governs electricity tariffs at the dam and represents a major economic interest for Paraguay. Asuncion condemned the surveillance as a breach of international law, summoned Brazil’s ambassador and announced that talks would remain suspended until Brazil provides satisfactory clarifications. Brazil confirmed the operation ended on 27 March 2023, shortly after President Lula took office on 1 January.
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