Caracas sources stated that Panama has pulled its ambassador from Venezuela, retaliating after the South American nation banned key Panamanian businesses from operating within its borders. Meanwhile the tension between the two countries began escalating in recent days when Panama put President Nicolas Maduro on a list of Venezuelan officials as being at "high risk" for laundering money.
Recently Venezuela announced a temporary ban for a group of Panamanian businesses and leaders. According to sources Panama's government described the Venezuelan move as being "a political reaction lacking substance." Panama also asked Venezuela to call home its ambassador from Panama.
The officials said "The dispute comes as Venezuela is mired in economic and political crisis and finds itself increasingly isolated from the global community". Moreover the European Union has also imposed economic and travel sanctions on seven senior Venezuelan officials accused of breaching the rule of law.
