The 2018 Panama–Venezuela diplomatic crisis was a diplomatic stand-off between Panama and Venezuela after the Panamanian government imposed sanctions on President Nicolás Maduro and several key officials of the Bolivarian government over alleged involvement with "money laundering, financing of terrorism and financing the proliferation of weapons of mass destruction" on 29 March 2018.
On 5 April 2018, Maduro imposed sanctions on Panamanian companies and as well as prominent Panamanian officials, including President Juan Carlos Varela in response to the sanctions imposed by Panama.
The diplomatic crisis ended on 26 April 2018 when President Maduro announced that he had called President Varela and agreed to the return of the ambassadors and the return of air communication between both countries.
Background
Bilateral relations between the Panama and Venezuela have been suspended on two previous occasions under the Bolivarian government. In 2004, diplomatic relations were suspended by Venezuelan President Hugo Chávez (together with Cuba), when the Panamanian government refused to extradite a Cuban exile militant and CIA agent Luis Posada Carriles, claiming his life was in danger if extradited to those countries.
In March 2014, Venezuelan President Nicolás Maduro broke off diplomatic relations between the two countries, after President Ricardo Martinelli expressed support for the demonstrators during the 2014 Venezuelan protests. Relations were later restored in July 2014, after Vice President Jorge Arreaza attended the inauguration of President Juan Carlos Varela.
Start of the crisis
On March 29, 2018, the Ministry of Economy and Finance in Panama published a list of Venezuelan people, for their history of banking operations, were subject to investigations by cash or bank fraud laundering, so the list sought to warn both public and private institutions that limit their economic and financial operations with the listed group, considering them to be "high risk". The Panamanian government accuses these officials for alleged involvement with "money laundering, financing of terrorism and financing the proliferation of weapons of mass destruction."
The list contained high-profile officials of the Bolivarian government including president Nicolás Maduro, 2017 Constituent National Assembly President Delcy Rodríguez, Vice President of the United Socialist Party of Venezuela (PSUV) Diosdado Cabello, Head of Local Committees for Supply and Production (CLAP) Freddy Bernal, ANC member and brother of former President Hugo Chávez Adán Chávez, Prisons Minister Iris Varela, President of the TSJ Maikel Moreno, Attorney General of Venezuela Tarek William Saab, President of the pro-government CNE Tibisay Lucena, Minister of Interior Néstor Reverol and Head of SEBIN Gustavo González López.
A group of Venezuelan opposition deputies, Freddy Superlano, Luis Florido and Ismael García traveled to Panama on April 3 to request the Panamanian Vice President and Foreign Minister, Isabel Saint Malo, the detailed list of the 55 Venezuelan officials. included in the list and the express reasons. In response, the foreign minister promised to provide all possible information in the way of cooperation between both countries, always respecting the applicable law.
Venezuelan government reaction
On 5 April 2018, the Venezuelan government imposed sanctions on 22 people and 46 Panamanian companies, among which were key officials of the government, including the President and Foreign Minister or Panama-based companies operating in Venezuela, such as Copa Airlines.
Panamanian government reaction
On 6 April 2018, the Panamanian government ordered to recall its ambassador to Venezuela, Miguel Octavio Mejia Miranda, in Caracas and urged the Venezuelan government to do the same with the Venezuelan ambassador, Jorge Luis Durán Centeno, in Panama City.
Copa Airlines was forced to suspend its operations from Caracas, Maracaibo and Valencia in response to the sanctions but resumed on 1 May 2018.
According to President Varela, the sanctions imposed against Copa Airlines by the Maduro government will hurt Venezuelans since Panama is a logistic route for supplying medicine and food in response to the outgoing shortages.
Sanctions between both countries
Sanctions on Panama by Venezuela
Venezuela imposed commercial sanctions by breaking commercial relations with Panama to 22 personalities and 46 Panamanian companies in response to the sanctions that Panama had imposed on Venezuela while reporting on the future publication of the list of Venezuelan personalities susceptible to money laundering.