A major real estate venture backed by the Trump family has collapsed in Serbia, marking a significant and rare setback for their international business expansion. The planned $500m Trump Tower in Belgrade has been abandoned following the indictment of a senior Serbian government minister.
Project Derailed by Corruption Allegations
The ambitious hotel and apartment development, which had been personally championed by Serbia's President Aleksandar Vučić, was scrapped on Monday. This decision came after the indictment of Culture Minister Nikola Selaković and other officials. They are suspected of abusing their office to facilitate the project by illegally revoking the site's protected cultural heritage status.
"We have lost an exceptional investment," a frustrated Vučić stated on Tuesday. He vowed reprisals, saying, "I will personally ensure that everyone who participated in causing this damage is held accountable." The president, whose close ties with Russia's Vladimir Putin have strained his relations with the West, had actively courted the Trump family for the deal.
Public Outcry and Legal Hurdles
The proposed building site was a location of deep historical and cultural significance: the ruins of the former military headquarters of Slobodan Milošević's regime, bombed by NATO in 1999. Its protected status had long prevented development.
However, nine days after Donald Trump's election victory in November 2024, the Vučić government moved to strip the site of its protection. This action sparked immediate controversy and thousands of demonstrators took to the streets of Belgrade to protest against the project and the government's alleged corruption.
Prosecutor Mladen Nenadić led an investigation, culminating in this week's indictments. Estela Radonjic Zivkov, an official at the cultural heritage institute who resisted pressure to support the project, welcomed the collapse of the deal. She told the Guardian it proved that "public interest, the rule of law, and professional integrity cannot be permanently overridden by political will and private interests."
A Blow to the Trump Business Empire
The project was a joint venture between the Trump Organization and Affinity Partners, the investment firm run by Trump's son-in-law, Jared Kushner. In a statement, a spokesperson for Affinity Partners said they were withdrawing "because meaningful projects should unite rather than divide, and out of respect for the people of Serbia."
This setback is notable within the context of the Trump family's prolific deal-making since Donald Trump returned to the White House 13 months ago. His sons, Donald Trump Jr and Eric, have secured a string of international agreements, helping to swell the family's income to an estimated $864m in just the first half of this year.
Critics have long accused the family of engaging in "pay to play" politics, where foreign entities seek favour through lucrative business deals. The White House has consistently denied any conflicts of interest.
The failure of the Belgrade project underscores the complex intersection of global business, geopolitics, and local activism, leaving a prime Serbian site undeveloped and a major investment in tatters.
