Paraguay’s decision came after Brazil’s foreign ministry revealed that the administration of Jair Bolsonaro, the right-wing predecessor of current President Luiz Inácio Lula da Silva, had conducted espionage against the small South American nation.

Lula’s government insisted that it had halted the surveillance against Paraguay immediately after becoming aware of it, without elaborating on the nature of the operation or whom it targeted.

Brazilian news site UOL reported that the country’s intelligence agents had infiltrated Paraguayan computer systems to obtain intel on sensitive tariff negotiations related to the Itaipu dam on their shared border.