Furious over sanctions against former president, Paraguay says it wants the US ambassador to leave

ASUNCIÓN, Paraguay (AP) — The government of Paraguay on Thursday effectively ordered the U.S. ambassador to leave the South American nation, escalating tensions between the allies in the wake of the Biden administration’s sanctions on a tobacco company linked to the country’s powerful former president.

In a dramatic statement that took diplomats aback, the Paraguayan Foreign Ministry asked the U.S. government to “accelerate the departure process” of Ambassador Marc Ostfield, a career diplomat appointed by President Joe Biden in June 2021.

Ostfield’s expedited departure, the ministry said, would “avoid the loss of confidence in a person damaging the relationship that we have historically maintained.”

The request appeared to be in protest against the White House’s latest move to tighten its sanctions against Horacio Cartes, one of Paraguay’s wealthiest people who served as president from 2013-18, owns dozens of lucrative businesses and retains considerable influence over the country’s ruling Colorado party. The U.S. government first sanctioned the cigarette tycoon last year, accusing him of “significant corruption.”

On Tuesday, the U.S. Treasury Department announced sanctions on Tabacalera del Este, a large tobacco producer that the U.S. government accused of illegally funneling millions of dollars to Cartes, its former majority shareholder. The company, also known as Tabesa, has angrily rejected the accusations and referred to the sanctions as an “abuse of power” by the U.S. government. Cartes has denied all allegations of corruption and said he no longer owns nor is directly involved in Tabesa’s operations.

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