Two years have passed in which Serbia had to fulfill the prerequisites for the Americans to start building the Trump Hotel on the site of the General Staff. Now comes the news about the possible compensation that Serbia should pay to Trump's son-in-law
Exactly two years ago, on May 15, 2024, the then Minister of Construction Goran Vesić he initialed the contract with the representatives of the company Jared Kushner, the son-in-law of US President Donald Trump, about the renovation of the complex General Staff and the construction of the Trump Hotel in the center of Belgrade.
At the time of signing the contract, hardly anyone could have guessed that the case of the General Staff would lead to criminal proceedings against state officials, protests by part of the professional public and citizens, and, finally, withdrawal of the American investor from the project.
This is exactly what happened during the following months. Kushner's company withdrew from the planned project at the end of 2025, after the General Staff case turned into a political and legal problem for the government in Serbia.
As it was announced at the time, the American partner abandoned the project after protests and the initiation of proceedings against the Minister of Culture Nikola Selaković regarding the status of the General Staff complex.
The contract, which was previously seen by Radar journalists, foresees financial consequences for Serbia, if it does not fulfill the promised preconditions. And they could go up to 50 million euros, that weekly published earlier.
Photo: Marija JankovićOne of the protests against the demolition of the General Staff
Contract deadline has expired.
The issue of possible compensation was reopened by the vice-president of the Freedom and Justice Party (SSP). Marinika Tepic, which stated that Kushner's company could demand compensation of 50 million euros from Serbia due to unfulfilled obligations from the investment contract.
Tepić told Nova television that the two-year deadline for Serbia to fulfill the conditions stipulated in the contract signed by Goran Vesić with the American side has expired.
"I have information that next week Kushner's company will initiate proceedings for damages, i.e. for compensation, because the obligations from the contract they signed with Serbia have not been fulfilled. The question arises as to who will pay those 50 million euros," Tepić said, among other things, as a guest on Nova television.
For now, however, there is no official confirmation that Kushner's company has initiated or is preparing arbitration or other proceedings against Serbia.
Photo: InstagramJared Kushner visiting Aleksandar Vučić
What did Serbia guarantee?
According to Radar's earlier writing, Serbia has committed to fulfill several conditions requested by the American side within two years.
Among other things, the state guaranteed that there are no disputes, investigations, arbitrations or other proceedings related to the land and facilities of the General Staff that could affect the implementation of the project, or a lawsuit or investigation that threatens to be initiated in connection with the land (on which the General Staff is located) or facilities.
Serbia undertook to declare the project a project of special importance for the country, which was later made possible by special law.
Among the conditions that the state had to fulfill were the removal of the status of cultural property from the General Staff complex, the completion of the demolition of the buildings, as well as the confirmation that the ecological rehabilitation of the land has been completed or is not required.
In addition, it was planned to obtain the consent of the Commission for the Protection of Competition, the positive opinion of the Commission for the Control of State Aid, as well as the adoption of appropriate planning documents.
Indemnity clause
According to Radar, the contract also contained a provision according to which the American partner can terminate the contract and demand reimbursement of expenses if Serbia does not fulfill its obligations.
Possible claims, as previously reported, could include costs incurred by the US firm in connection with the project, including the costs of acquiring a stake and terminating the contract after the joint venture was established.
The contract provided for the establishment of a joint venture in Serbia in which the American partner would have a majority stake, but it is not known whether that company was formally registered.
At the same time, one provision of the contract stipulated that Serbia's total liability towards its strategic partner could not exceed 50 million euros, Radar wrote.
The text of the contract was adopted by the conclusion of the Government of Serbia in February 2024, and on the Serbian side it was signed by Goran Vesić in May of the same year.
Today, Vesić is under investigation by the Prosecutor's Office for Organized Crime as part of the procedure related to possible financial malfeasance on the railway modernization project in the Nadstrešnica case.
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