Serbian President Aleksandar Vučić stated that Serbia suffered a significant economic loss after Jared Kushner’s company, Affinity Partners, withdrew from a planned luxury development project in Belgrade. The project was intended to be built on the site of the former General Staff building of the Yugoslav Army, destroyed during NATO bombings in 1999.
Vučić described the withdrawal as a result of a “witch hunt” against the investor and the construction project, estimating that Serbia lost at least €750 million in potential investments.
“We lost a major opportunity. Today, Serbia is being criticized because some claim it was a bad project. A smaller project rushed in Albania has gained significant attention and publicity because the Trump family will publicly praise it,” Vučić said, referring to Kushner’s investment plan for Sazan Island in Albania.
He added that certain groups, including parts of the political opposition, failed to act in the country’s interest.
Opposition and Public Resistance
The project faced opposition from anti-government protesters, political opponents, and experts, who advocated for preserving the cultural heritage status of the General Staff building. The company announced its withdrawal on December 15, coinciding with the Serbian Organized Crime Prosecutor’s indictment of Culture Minister Nikola Sellaković for allegedly violating laws in removing the building’s cultural monument status.
“Large projects should unite, not divide. Out of respect for Serbian citizens, we are withdrawing and stepping aside this time,” said a spokesperson for Affinity Partners, according to the Wall Street Journal.
Vučić placed blame on the prosecutor’s office and so-called “blockers,” referring to anti-government protesters who have opposed the ruling Serbian Progressive Party (SNS) for over a year.
Legal Proceedings and Controversy
The Serbian Organized Crime Prosecutor’s Office has been investigating alleged document falsification since May, which allegedly facilitated the removal of the building’s cultural heritage status. Goran Vasić, director of the Republican Institute for Cultural Heritage Protection, admitted to falsifying documents, which were then submitted to the Ministry of Culture, headed by Sellaković, to justify the decision.
Vučić denied corruption allegations, asserting:
“There was never corruption involved, nor was that the goal. I am the one responsible. I wanted to modernize Serbia and bring a major investor.”
Meanwhile, experts including Edward P. Joseph, senior fellow at Johns Hopkins University, described the withdrawal as a predictable consequence of the Serbian government’s mishandling of cultural heritage regulations.
Background of the Project
The contract with Kushner’s company was initially signed in May 2024, with Goran Vesić, former Minister of Construction, Transport, and Infrastructure, as Serbia’s signatory. Terms required Serbia to:
- Remove the building’s cultural heritage status “in a manner satisfactory to Kushner’s company.”
- Complete the demolition of the site.
- Lease the land for 99 years at no cost, with an option for free ownership.
The withdrawal has sparked widespread criticism and highlighted ongoing tensions between economic ambitions and cultural preservation in Serbia.
