Panama today ordered Venezuela's ambassador out and recalled its own envoy to the country as Caracas imposed sanctions on senior Panamanian officials and suspended flights in an escalating diplomatic row.
At issue is Panama's alignment with other Latin American countries as well as the European Union, Canada and the United States that have taken measures against President Nicolas Maduro's and his government on the grounds that he is undemocratically tightening his hold on power.
"Panama's government has decided to withdraw its ambassador to the Bolivarian Republic of Venezuela, Miguel Mejia, and asks the Venezuelan government to withdraw its ambassador accredited to Panama, Jorge Duran Centeno," the Panamanian foreign ministry said in a statement.
The communique came hours after Venezuela's government news agency AVN announced sanctions on Panama's president and other officials, and on a number of Panamanian companies including its main airline Copa.
Venezuelan aviation authorities also announced that all Copa flights "to and from the country are suspended as of April 6, 2018 as a measure to protect the Venezuelan financial system."
According to AVN, the sanctions against the Panamanian individuals and companies will result in a suspension "for 90 days (of) economic and financial relations."
Humberto Figuera, head of the Airlines Association of Venezuela, old AFP ahead of the Copa suspension announcement that such a moved would be "really serious."
The state news agency said Venezuelan prosecutors called for the sanctions were because of the alleged "recurrent use of the Panamanian financial system by Venezuelan nationals to move money and assets derived from crime against the nation's wealth."