The German minority in Paraguay came into existence with immigration during the industrial age. The "Nueva Germania" colony was founded in Paraguay in 1888; though regarded as a failure, it still exists despite being abandoned by many of its founders in the 1890s. Paraguay was a popular place for German leaders accused of war crimes to retreat after the second World War. There are large communities of German descendants living in the department of Guairá, in a town called (Colonia Independencia), the department of Itapúa, mainly in the Departmental Capital, Encarnación and the German towns of Obligado, Bella Vista and Hohenau. Some recent Brazilian immigrants to Paraguay also have German ancestry (Brasiguayos).[2] Notable Paraguayans of German descent include the former president of Paraguay Alfredo Stroessner.
Another large group of Germanic people who immigrated to Paraguay are Plautdietsch-speaking Russian Mennonites, people of Dutch and Prussian ancestry who immigrated to Russia under the rule of Czarina Catherine the Great. The Paraguayan Mennonite community left Russia in two waves: the first in the 19th century when their exemption from military service ended, and the second to avoid Stalin's collectivization programs. Russian Mennonites are different from another German-Russian group, the Volga Germans, through religion, ethnicity, and reasons for immigrating to Russia. Russian Mennonites are religious Mennonites while the Volga Germans are religious Lutherans and Roman Catholics. Russian Mennonites are mostly of Flemish and Frisian origin. They migrated to German settled parts of West Prussia where they stayed for some 200 to 250 years and then went on to Russia for purposes of freedom of worship, while the Volga Germans went for economic reasons and land.[citation needed]
When the Communists came to power in Russia, the German-speaking population were persecuted by the new government. Some Russian Mennonites saw Paraguay as a perfect place to settle because it looked isolated. The government of Paraguay wanted more people to settle in the Chaco region, which was under dispute with its southern neighbor Argentina and its western neighbor Bolivia. The move to Paraguay was difficult for the Russian Mennonites, because they were new to the climate. Some of them left Paraguay for neighboring Argentina, where they met many Volga Germans, who had decided to settle in Argentina to escape the persecution in Russia. However, the situation changed, and the Russian Mennonites began to prosper in Paraguay.[citation needed]