Perhaps the clearest sign that things aren’t going well in Venezuela is the sudden decision of the powerful oligarchs to flee the only place that has given them their wealth. Recently, we learned of Juan Carlos Escotet’s offer of €1 billion and his subsequent acquisition of Novagalicia in Spain. Novagalicia, a small bank active in northwestern Spain, had received financial assistance from Spain and Brussels during the banking crisis, requiring approval from the relevant Spanish and European regulatory bodies for its sale. Despite Escotet’s false claims about the wealth of his bank, BANESCO—where he asserted to have €25 billion using an unrealistic Bs/USD exchange rate—the official approval was granted quickly and without much scrutiny. Recently, he appointed his former partner, Miguel Ángel Capriles López, the ex-owner of the largest newspaper conglomerate in Venezuela, to the new board of Novagalicia.
In other news, we also learned about Víctor Vargas’s attempt to enter the Spanish banking sector by acquiring the European Bank of Finance (BEF). The potential takeover is being led by Tomás Niembro, one of Vargas’s trusted associates. Lastly, we’ve been following the activities of Derwick Associates, whose executives are now marketing Venezuelan oil and gas in the market through a former U.S. ambassador.
It’s no surprise why these thugs are being welcomed with open arms in Spain—not just by banks and authorities, but also by real estate brokers and society at large. Spanish politicians, who would otherwise criticize what the boliburguesía represents, have also been caught dipping their hands into Venezuelan public funds via questionable contracts. This showcases a common trend of plundering Venezuela whenever possible, where, as the good David Cameron said, “we’re all in this together,” whether they are corrupt chavista officials, Venezuelan ‘entrepreneurs’ and ‘bankers,’ radical Spanish politicians, members of the Kennedy clan, or Republicans.
However, if there is one thing to be said about these top-tier thugs, it’s that they are a well-connected group. They likely understand better than anyone how the winds are blowing in Venezuela. By the nature of their dealings with the chavismo, they must be witnessing something dramatic enough to decide to leave for other countries, like Spain. I would argue that Miguel Ángel Capriles López, Juan Carlos Escotet, and Víctor Vargas Irausquin rank among the most informed and connected Venezuelans today. Not only have they dealt with chavismo at the highest levels for years, but through clientelism and corruption, they also know what’s happening in the army, the opposition, the energy sector, finance, and the media. And, more importantly, they are now ‘diversifying’ into other jurisdictions, where they won’t be able to replicate what they’ve done in Venezuela.
What are these people seeing? While one could argue in favor of asset protection, I don’t think that fully explains it. Because what this group has done was only possible in Venezuela. Are they about to turn their backs on the opportunities Venezuela represents for them? Millions made overnight, illegally, without consequences? Or is it rather that the Venezuelan petro-piñata no longer has any sweets left, and the regime seeks to recover them?