The decision comes after the Central American nation requested a meeting at the Organization of American States (OAS) to discuss Venezuela's crisis.

 

Mr Maduro was speaking to other Latin American heads of state at events to mark the first anniversary of the death of the Venezualan leader Hugo Chavez. 

 

At least 18 people have died in anti-government protests in the last month.

 

"I've decided¹ to break political and diplomatic ties with the current government of Panama and freeze all trade and economic relations from this moment on," Mr Maduro told the presidents of Cuba, Raul Castro, Uruguay, Jose Mujica, and Bolivia, Evo Morales, among other leaders gathered around the tomb of Mr Chavez.

 

 

Panama's President Ricardo Martinelli expressed surprise at Venezuela's decision.

 

"Panama only hopes that this brother nation finds peace and strengthens its democracy," Mr Martinelli wrote on Twitter.

 

Panama's official statement said the country was "astonished" and called Mr Maduro's words "unacceptable". 

 

"The measure announced by President Maduro should not become a smoke screen intended to hide reality," it read.

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