Corruption scandal puts end to Kushner’s Serbia real estate megadeal

Jared Kushner, son-in-law of U.S. President Donald Trump, abruptly withdrew on 15 December from a controversial real estate venture in Serbia.

The project, which aimed to transform the bombed-out former Yugoslav Army General Staff headquarters in central Belgrade into a luxury complex featuring a Trump-branded hotel, apartments, offices, and shops, had been discussed for over two years.

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Kushner’s private equity firm, Affinity Partners, announced the decision hours after Serbian prosecutors indicted a senior government minister and three officials on charges of abuse of office and document forgery related to the site’s development.

A spokesperson for Affinity Partners stated: “Because meaningful projects should unite rather than divide, and out of respect for the people of Serbia and the city of Belgrade, we are withdrawing our application and stepping aside at this time.”

Sources indicate no wrongdoing on Kushner’s or his firm’s part, but the escalating controversy – marked by mass protests, political backlash, and judicial scrutiny, proved insurmountable.

The site holds profound historical and emotional significance for Serbians. Designed in the 1960s by renowned modernist architect Nikola Dobrović, the iconic complex – clad in white Croatian marble and red Serbian limestone, was partially destroyed during NATO’s 1999 bombing campaign. The 78-day airstrikes, aimed at halting ethnic cleansing in Kosovo under Slobodan Milošević’s regime, left the buildings in ruins. For many Serbians, the site symbolizes national resistance to what they view as unjust foreign aggression, with lingering anti-NATO sentiment strong in the country.

The controversy ignited when President Aleksandar Vučić’s government signed a 99-year lease with Kushner’s Affinity Global Development in 2024, paving the way for a $500 million redevelopment. Critics accused authorities of illegally stripping the site’s protected cultural heritage status through forged documents and rushed legislation. Last month, parliament fast-tracked laws to expedite construction, sparking renewed outrage.

Opposition figures decried the deal as “high treason,” arguing it sold sacred national land to curry favor with the Trump administration. Thousands of students and citizens protested, some vowing to occupy the site. Left-wing groups condemned the opaque sale of public property, while nationalists rejected any U.S.-linked development on “sacred ground” bombed by NATO. Heritage experts and architects warned that demolition would erase a prime example of mid-20th-century Yugoslav architecture. An MIT professor likened the proposal to “putting a Trump Hotel on a significant historical monument.”

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Vučić defended the project as essential for modernizing a neglected downtown eyesore and strengthening U.S.-Serbia ties, particularly amid U.S. tariffs and sanctions on Serbia’s Russian-linked oil industry. He even offered to pardon any convicted officials, declaring himself “guilty” for seeking major investments.

The indicted officials include Culture Minister Nikola Selaković – a close Vučić ally—and three heritage institute directors accused of falsifying records to remove protections. The case underscores tensions between Vučić’s ruling party and Serbia’s semi-autonomous organized crime prosecutor’s office.

Kushner, who served as a senior White House advisor during Trump’s first term, has balanced business with informal diplomacy in Trump’s second administration, including roles in Gaza and Ukraine-Russia mediation efforts. Affinity Partners, managing around $4.8 billion largely from Middle Eastern sovereign funds, has pursued global deals, including stakes in a $55 billion Electronic Arts buyout and financing for Paramount’s bid for Warner Bros.

The withdrawal ends a project that highlighted the intersection of family business interests, geopolitics, and cultural sensitivities in post-conflict Serbia. While Kushner steps away, the ruins remain a potent reminder of 1999’s scars, and debates over their future are likely to persist.

Sources: BETA, BGNES, New York Times

Caption: Trump’s son-in-law Jared Kushner attends a meeting with Russian President Vladimir Putin and US Presidential Envoy Steve Witkoff (both not pictured) at the Kremlin in Moscow, Russia, 02 December 2025. Putin received Witkoff and Kushner to discuss US President Trump’s ‘peace plan’ for Ukraine. EPA/KRISTINA KORMILITSINA / SPUTNIK / KREMLIN POOL