China announces biggest investment in Russia

The announcement of the "Baltic Pearl" project comes amid official efforts to expand Chinese-Russian trade and investment ties to match the warming political links between the former Cold War enemies.

Photo: China announces biggest investment in Russia

The "Baltic Pearl" will have housing for 35,000 people and should be completed in six to eight years, said a statement issued Thursday by the Shanghai Industrial Investment Group Ltd., one of five Shanghai-based companies in the investment group. The deal was announced Monday.

China is a leading buyer of Russian oil and weapons, and Russia's imports of Chinese-made appliances and other goods are rising, according to the AP.

State-owned China National Petroleum Corp. announced a US$500 million investment this week in Russian oil producer OAO Rosneft. But most other Chinese investments in Russia are small.