ASUNCION/SAO PAULO (Reuters) – Paraguay’s government summoned Brazilian ambassador Jose Antonio Marcondes to report on an “intelligence action” against Paraguay linked to the Itaipu power plant, according to a statement published on Tuesday.
Negotiations related to the Itaipu hydroelectric power plant, which were due to be concluded by end-May, were suspended until Brazil provides clarifications, the Paraguayan government added.
Brazil acknowledged on Monday that there was an operation authorized by the previous government of President Jair Bolsonaro, after Brazilian news outlet UOL reported Brazil’s intelligence agency Abin took action to hack Paraguayan authorities, but added that the operation was later canceled.
The actions aimed to gather information related to the Itaipu tariff agreement, the outlet added.
The hydroelectric power plant is a binational venture between Brazil and Paraguay.
Brazil’s foreign ministry said in a statement late on Monday that President Lula’s administration “categorically denies any involvement in the intelligence action”.
The operation was shut down as soon the current government became aware of it in March 2023, the statement added.
(Reporting by Daniela Desantis in Assuncion; Additional reporting by Andre Romani, Eduardo Simoes and Ricardo Brito; Writing by Isabel Teles; Editing by Aida Pelaez-Fernandez and Chizu Nomiyama)
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