Ukraine has severed diplomatic relations with Nicaragua after the Central American nation formally recognised Russian sovereignty over occupied Ukrainian territories, in Kyiv's harshest rebuke yet to the dwindling group of nations backing Moscow's annexations.

The Ukrainian foreign ministry announced the break on October 1, condemning Nicaragua's endorsement of Russian control over Crimea and parts of the Donetsk, Luhansk, Zaporizhzhia and Kherson regions as a "gross violation of the UN Charter and fundamental norms of international law."

The rupture follows reports that Nicaraguan co-presidents Daniel Ortega and Rosario Murillo had written to Vladimir Putin in late July expressing "full support and recognition" of Russia's occupation of the territories. Nicaragua becomes the first UN member state to explicitly back Moscow's annexation of the four regions, which Russia formally incorporated through signed treaties in September 2022.

"This decisive diplomatic step is evidence that Ukraine will continue to react as harshly as possible in response to any attempts to encroach on its sovereignty and territorial integrity," said Ukrainian foreign minister Andriy Sybiha, as quoted by Ukrainian news agency UNN.

The foreign ministry accused the Managua regime of "political identification with the aggressor state" and described Nicaragua as financially and politically dependent on Moscow. The statement also referenced Nicaragua's opening of what Ukraine calls an "illegal honorary consulate" on occupied Crimean territory, which had prompted sanctions from Kyiv in 2020.

Nicaragua's backing of Russian territorial claims extends beyond diplomatic statements. Recent decrees published in the Nicaraguan official gazette grant presidential son Laureano Ortega Murillo authority to negotiate trade agreements with the occupied Ukrainian regions, pointing to deepening economic ties between Managua and Russian-controlled territories.

The alignment builds on Nicaragua's Cold War-era Soviet ties. During his first stint in power from 1979 to 1990, Ortega cultivated close relations with Moscow, receiving substantial military support. Since returning to office in 2007, the former Sandinista guerrilla member has become increasingly authoritarian and touted Nicaragua as Russia's most reliable Latin American ally.

Intelligence analysts have identified Nicaragua as a pivotal hub for Russian activities in the region. According to research from Florida International University, sophisticated surveillance infrastructure is operating under Russian intelligence supervision at Nicaragua's Cerro Mokorón facility, including SORM-3 technology capable of extensive communications interception.

Military cooperation between the two nations has also intensified. Nicaragua and Russia are finalising a comprehensive partnership agreement covering 16 areas of collaboration, from tactical training to intelligence sharing. The arrangement could facilitate the transfer of Russian combat experience from Ukraine to Nicaragua's armed forces.

Nicaragua's foreign ministry last year hailed relations with Russia as reaching "the level of a strategic alliance," with both nations committed to “creating a multipolar world order.” Trade between the countries surged 70% in 2023, with growth continuing at 79% in the first quarter of 2024, according to Russian officials quoted by TASS.

The diplomatic break represents a rare instance of Ukraine terminating relations entirely rather than merely downgrading them. Nicaragua was among only four nations—alongside North Korea, Syria and Belarus—to vote against a UN resolution condemning Russia's invasion in October 2022. However, Damascus has since pivoted away from Moscow following the overthrow of former dictator Bashar al-Assad and last week restored diplomatic ties with Kyiv.

Nicaragua had previously backed Russian territorial ambitions, recognising the breakaway Georgian regions of Abkhazia and South Ossetia in 2008 and supporting the 2014 Crimean annexation. But the formal endorsement of the four Ukrainian regions marks an unprecedented level of support for Moscow's territorial expansion.

The severing of ties, first established in 1992, eliminates Ukraine's diplomatic representation through its embassy in Mexico and consular services via Havana. For Ortega's increasingly embattled regime, which has jailed hundreds of opponents and shuttered civil society organisations, the Russian partnership offers crucial international support amid Western sanctions and diplomatic pressure.

As competition intensifies between Russia and, to a greater extent, China and an increasingly assertive United States for influence in Latin America, Nicaragua's positioning as what exiled opposition leader Felix Maradiaga calls an "aircraft carrier" for autocratic powers poses mounting challenges for democratic institutions across the region.