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Security & Strategic Review - May 2025

PARAGUAY-BRAZIL: Spying scandal impacts bilateral Itaipú talks

Tensions have risen between Paraguay and Brazil after the Brazilian media revealed that Brazil’s intelligence agency (Abin) had allegedly spied on Paraguayan authorities from 2022-2023 to obtain information related to negotiations to revise Annex C of the Itaipú Treaty, the section which determines the prices for the sale of surplus electricity generated by the binational Itaipú hydroelectric dam. The revelation of the Brazilian surveillance has caused outrage and the Paraguayan government led by President Santiago Peña has suspended talks with Brazil related to Itaipú.

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