A Luxurious Belgrade Hotel Connected to Donald Trump
From an investor's perspective, the building's location on one of the central streets in the Serbian capital is self-explanatory. For Serbians, the former military building in the ruins is much more.
Highlights
Expect debate over plans to redevelop Belgrade's bombed Ministry of Defense site by Jared Kushner's company.
Questions arise about potential political influence and ethical concerns.
Read about the emotional weight of the site, representing NATO's 1999 bombing of Yugoslavia.
Two years prior to his presidential run, Donald Trump had his eyes set on a very particular location in the capital of Serbia. His initial plan to build a luxury hotel at a very prominent location in Belgrade has now been inherited by his son-in-law, Jared Kushner, who has reached an agreement with the Serbian government. In addition to a luxury hotel, the project includes an apartment complex and a museum, covered by a 99-year, no-charge lease.
However, the Serbian public did not welcome the news about the agreement with open arms. The praised, sought-after location in Belgrade is, in fact, the site of the bombed Yugoslav Ministry of Defense headquarters, destroyed by NATO in 1999. The thought of the demolished Defense Ministry site, standing as a symbol of Serbian suffering, being redeveloped by an American company seems to have opened up a deep 25-year-old wound.
The Controversial Belgrade Deal
What was once Donald Trump’s Balkan vision, interrupted by his presidential obligation that ended the foreign dealmaking, is now Jared Kushner’s redevelopment project—closer to realization than Trump’s ever was.
Even though Trump’s representatives made no comments and Kushner denied the connection between the two development deals, Richard Grenell seems to be the common denominator. Once appointed the special envoy in the Balkans by Trump himself, Richard Grenell appears to be the mastermind behind the project, which he was rather vocal about during his diplomatic career in Serbia.
Today, Grenell could be considered Jared Kushner’s right hand in the Belgrade deal and the person whose connections in the Balkans may have led to the idea's launch. The New York Times article also recognized a striking resemblance between Kushner’s Belgrade development deal and the previous Saudi multi-billion dollar deal based on former Treasury Secretary Steven Mnuchin’s involvement in Middle Eastern diplomacy.
According to Kushner’s X (Twitter) post on March 15, the Balkan development projects include not only the downtown Belgrade site but also the Albanian coast—the former military base island of Sazan and the Zvërnec peninsula. Both Albanian real estate projects involve the development of hotels and hundreds of luxury villas.
As far as the Belgrade deal is concerned, the $500-million investment should greatly benefit the Serbian government, as it would receive a significant portion of the profits (22%). At the same time, Kushner would gain ownership of the property free of charge once the project is completed - including a luxury hotel, a residential project with 1,500 units, and a museum.
Even though Kushner, as well as his wife Ivanka, have created a barrier between their personal affairs and Trump’s political career by stating that they’re not re-joining Trump’s administration, the possibility of Trump’s reelection is raising questions about the influence of these deals on foreign politics. However, the political aspect isn’t the only obstacle, as Kushner’s development plans in Serbia trigger ethical concerns.
The Historical and Ethical Perspective
What is the reason behind the apparent strong interest in a ruined building? From an investor's perspective, the building's location on one of the central streets in the Serbian capital, Knez Milos, is self-explanatory. For the people of Serbia, the former military building in the ruins is much more than what meets the eye.
On the evening of March 24th, 1999, after years of conflicts between some of the ex-Yugoslavian nations, NATO started the bombing of Yugoslavia (today’s Serbia, excluding Montenegro), which lasted for two and a half months. The NATO attack on Yugoslavia was the first of its kind since the organization’s formation.
The UN Security Council did not back it, and, therefore, the operation did not have international legal approval. Referred to as Operation Noble Anvil by the U.S. forces, there was hardly anything noble about it, as the consequences were catastrophic and can still be felt among the people of Serbia.
In addition to a destroyed political image, the demolished infrastructure, and the economic downfall, the human victims included around 2,500 civilians - some of whom were children. What’s more, the depleted uranium ammunition used by NATO has an ever-lasting effect on the health of the population, as these toxic particles can still be detected in air and soil.
Business vs. History: The Verdict
The devastated former General Staff building was never reconstructed, as it stands as a reminder of the 78-day-long battle that altered the Serbian brain chemistry forever. Even if the newly built museum fairly portrayed the struggle of the Serbian people, for a vast majority of the public, gifting the symbol of NATO aggression to a company from a country that destroyed it in the first place would be a slap in the face - and a petition signed by more than 22 thousand Serbs confirms it.
While economic prosperity, forgiveness, and peace remain the staples of Serbian society, the question remains: is the site of the ruined army headquarters the appropriate choice for the newly established symbol of the Serbian-American friendship?