The government of Paraguay has requested the U.S. ambassador to leave the country in response to the Biden administration's sanctions on a tobacco company linked to a former president. The Paraguayan Foreign Ministry urged the U.S. government to expedite the departure of Ambassador Marc Ostfield to prevent any damage to the historically maintained relationship between the two nations.
The tensions arose following the U.S. Treasury Department's decision to impose sanctions on Tabacalera del Este, a tobacco producer accused of funneling money to Horacio Cartes, a prominent figure in Paraguay's political and business landscape. Cartes, a former president and influential member of the ruling Colorado party, has been under U.S. sanctions for alleged corruption since last year.
The U.S. Embassy in Paraguay confirmed that Ambassador Ostfield was summoned by the Foreign Ministry for discussions regarding the sanctions. However, there was no comment on the demand for Ostfield's accelerated departure.
Paraguayan Foreign Minister Rubén Ramírez Lezcano expressed the government's objection to the politicization of the sanctions and emphasized the country's sovereignty and independence. The mention of potential extradition in Ostfield's remarks on anti-corruption efforts raised concerns in Paraguay, where Cartes' supporters hold significant political influence.
In a show of solidarity with Cartes, lawmakers from the Colorado party gathered at his residence after the sanctions announcement. President Santiago Peña, a close ally of Cartes, was notably absent from the gathering, indicating the growing pressure on him to defend the former president amidst corruption concerns that are impacting investor confidence in Paraguay's economy.
