"The government of Paraguay regrets that the foreign policy decision taken in a sovereign form corresponding to international law [the decision to cancel embassy relocation] will damage bilateral cooperation, which is a genuine expression of friendship among the two peoples and which remains unchanged from Paraguay's side," Paraguay's Foreign Ministry said in a statement.
At the same time, the ministry noted that the Israeli embassy in Asuncion yesterday made a statement about the suspension of joint projects.
"None of these projects are currently under implementation, and therefore it is wrong to talk about their cancellation or suspension," the ministry added.
On September 5, the office of Israeli Prime Minister Benjamin Netanyahu said that Israel is closing its embassy in Paraguay in response to Paraguay reversing its decision to move its embassy in Israel from Tel Aviv to Jerusalem.
The move came in response to Paraguayan Foreign Minister Luis Alberto Castiglioni's statement that Paraguay stopped the process of moving the diplomatic mission to Jerusalem, which was launched in May under the decision of the country's former President Horacio Cartes.
Paraguay was the third country to announce the relocation of its embassy from Tel Aviv to Jerusalem, after the United States and Guatemala.