US lifts sanctions on Paraguay’s ex-President Cartes

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By Daniela Desantis and Lucinda Elliott

ASUNCION (Reuters) -Former Paraguayan President Horacio Cartes said on Monday the United States Office of Foreign Assets Control had lifted sanctions imposed on him two years ago for his involvement in acts of alleged corruption.

The announcement followed a statement on the OFAC’s website in which the former president and several of his companies were removed from a list of what the OFAC calls “specially designated nationals.”

Cartes was slapped with sanctions in 2023, with OFAC citing “rampant corruption,” which the former leader has repeatedly denied.

“With humility and satisfaction I receive the news of the lifting of the OFAC sanctions that weighed on me,” Cartes said on Monday in a statement on X.

Cartes, who governed Paraguay between 2013 and 2018, is considered the political mentor of the country’s current President Santiago Pena. Cartes still heads the ruling Colorado Party and has significant influence in Pena’s government.

The United States had accused Cartes of participating in corrupt activities before, during and after his term as president, and of obstructing a major international investigation into transnational crime to protect himself.

A U.S. State Department spokesperson, in a written response to Reuters on Monday, said the government decided that the “sanctions on Cartes and his related businesses were no longer required to incentivize changes in behavior and were therefore not in the foreign policy and national security interests of the United States.”

The State Department did not confirm whether a travel ban against Cartes entering the U.S. would be lifted or remain in place following the decision.

“I extend recognition to the government of the United States, led by President Donald Trump, for having acted with objectivity and a sense of justice in reviewing all relevant circumstances and the merits of my defense,” Cartes said.

In addition to maintaining Paraguay’s alliance with Taiwan despite growing domestic calls to recognize China, Pena has shown strong support for U.S. initiatives in international forums, including his support for Israel during the war in Gaza.

“We celebrate this decision by the Government of the United States and reaffirm our commitment to work ever more closely together,” Pena posted on X on Monday.

(Reporting by Daniela Desantis and Lucinda Elliott; Writing by Kylie Madry; Editing by Daina Beth Solomon and Bill Berkrot)