The Branch | Caracas Chronicles
It is too early to say that things are settling at The Branch, the hostile takeover by Corporate left some ripples and management is scrambling to adapt. For the moment, we can say that the status remains “fluid.” We’re not at a place yet where the branch manager can fire the annoying janitor that’s been around for decades and seems to have more power than he should, but at least she’ll be able to change that old pot that makes cockroach tasting coffee for a proper Nespresso.
That’s where we are. Por ahora, Venezuela seems to be stuck in a corporate takeover by the US government. And like any corporate takeover it’s natural that the target’s management will be jittery, but at the same time trying to stick to their old ways, the “this is how we do things here” attitude that lasts until Corporate reminds them that “how we do things here” is what landed them in this position in the first place. Regardless, management has to calm the staff, who are hoping that things will remain somewhat the same, although deep down they know they’re not.
I’m not going to hold the analogy throughout the whole piece, but rather ramble in and out of it as it comes. The point is that the Venezuela strategy is currently detached from a democratic logic (por ahora), and it may be more oriented to results on a spreadsheet. I’m not saying this just because Donald Trump is a businessman and the first thing they’re tackling is the oil business while he talks about how profitable this whole thing will be, but also because they are approaching the situation just how you would approach the expansion of a business. And branch, dare we say, not subsidiary, since there’s little to no independence on how this business is being run.
Delcy Rodríguez and her brother Jorge, have been keeping the house together for a while. Delcy has been the executive part of The Branch since before it was a branch and Jorge a key strategist and negotiator for the organization. We’ve said before that even when the regime has had the dictatorial tumbao since forever, and that democratic institutions where thrown out the window many years ago, they did have a certain degree of separation of powers caused by the death of Hugo Chávez (who did concentrate all powers). Bout of course, not separation of powers how it was taught in political institutions classes (executive, legislative and judicial), but more into chavista factions (executive, Diosdado, and the military). That separation of powers maintained a certain balance, if you saw it from a chavista logic. The executive, under Maduro and Cilia Flores, not only concentrated the powers of the presidency but a big chunk of the judiciary (in Cilia particularly). Delcy Rodríguez’s role in this structure was, actually, executing almost all of Maduro’s functions and many other roles delegated in her (in a way, Delcy was the Rubio to Maduro’s Trump).
The military in the post Chávez era has always been its own mega bureaucratic, too big and too divided to move behemoth, focused on wealth and politics, that has the legendary power to change things in the country at a snap of its fingers, but that won’t do it because it is too big and too divided.
For a long time, Diosdado stood his ground in the legislature because of his influence over the party. He was able to hold leverage over the “executive” by blocking certain legal initiatives, like one touted reform of the Hydrocarbons Law that had been requested for ages by Russia, China, Iran, and the United States. Then, after the 2024 presidential elections, when this structure started losing balance, Diosdado accumulated more power when he became Venezuela’s top cop—in command of a force that probably has more experience and is more combat ready than the military.
After Maduro’s extraction, this balance broke. Chavista politics and separation of powers out the window. The military sent to the barracks and the Rodríguez siblings forced to play nice with Diosdado (and viceversa) por ahora. The chain of command disolved into a single line between two speakerphones. Tyranny.
Welcome to the corporate world.
While adjusting to this new reality hasn’t been easy, The Branch has been understanding some basic rules based on efficiency and celerity required by Corporate. In just a week, after Exxon CEO Darren Woods voiced concerns over the legality of PDVSA’s current contractual framework, the lack of resources to protect investment in Venezuela, and the complications to carry out regular business activities, the National Assembly presided by Jorge Rodríguez “discussed” for immediate approval in first discussion three pieces of legislation provided by the branch manager (Jorge’s sister, it’s a family business!): the hydrocarbons law, which doesn’t only legalize the aforesaid contractual framework but also adds alternatives to solve disputes beyond Venezuela’s courts; a Socioeconomic Rights Law; and an anti red tape law. This first law packet should be fully approved and entering into force within the week. Easy peasy.
Mr. Trump, please tell Mr. Woods that his request should be fulfilled shortly.
Best,
Delcy R.
Also, part of the funds from the first batch of oil sold via the US has already been injected into the financial system, partially stabilizing the foreign exchange market and liberating crude storage space. Delcy also started making some cabinet changes, nothing major yet, she’s still keeping the people she trusts close, and giving some space to Cabello, but she got rid of Alex Saab—it’s not hard to please the boss when you get to do something you really wanted to do in the first place.
Staffing has been at the core of this takeover. A Reuters headline yesterday read: Trump considers role in Venezuela for Machado. While we don’t see yet that Corporate will Machado to supervise Delcy, we’re at such a dry spot right now, that Trump decides whether the most popular politician in Venezuela can participate or not in… What? Can it even be called a transition? What is it? We argued in a different post that beyond the ruckus that Machado’s involvement may cause in Venezuela in this moment, Trump is just happy on how Delcy has been delivering. His weekly reviews all include gold stars. Versus what could mean having to deal with a leader “constrained and empowered by a democratic mandate” and an actual obligation to the Venezuelan people.
That’s why the easy part is starting with the business stuff. Getting to the core of the organization is the hard part. We’ve seen many comments on how the first thing that has to be done in order to actually entice investors to come into Venezuela is to work on its democratization and fixing its institutions (not entirely true). We can discuss about democratic principles all you want, but it’s just not going to happen that way, even when it would be the most desirable option. It’s just not the path we’re on. Corporate decided to “fix” the business first, because they want to see profit, they want to see that it’s worth it. And perhaps, by working their way from the outer shells of the business, eventually, maybe, getting to the core of the issue: the need for re institutionalization and getting democratically elected leaders to replace the branch management. While there’s a very slim chance of this happening, democracy would have to seep through a crack of the business shell into the core, it may be the only chance. Not that the takeover method was correct or ethical, but no one else would’ve been crazy enough to put in the investment. And again, it’s the reality that we’re in and that’s what we have to deal with.
Timing, not time, is one of the big challenges here. Corporate needs to keep oversight and control for just the right amount of time, taking into account that there’s a big chance to get pushback from the branch management when trying to impose a new system, if they take too long, let’s say… November, the chance may be lost and branch management will sit comfortably and sooner than later go back to their old ways. Just look at how they’ve been handling the “good faith” gesture of political prisoner release. Yes, they’ve been complying, but there’s been resistance, lies and treachery.
And then there’s the issue of Cabello himself. It’s hard to see a democratization process with him, his special forces, and his colectivos around. We don’t see it. Big oil doesn’t see it. The region doesn’t see it. And perhaps, at some point, Corporate won’t see it too.
Sadly, at present, bringing Venezuela back to democracy requires more than the will of Venezuelans. Of course that part is key, but right now we mostly depend on the good heart of men in a board room looking at excel sheets. Or just wait for the numbers on those excel sheets to spell “democracy.”





















