Those who follow events in St. Petersburg know of the ongoing struggle between residents, businesses, and government over new mega-construction projects such as the Gazprom Tower, residential buildings across the Neva river from the Hermitage, the new Stock Exchange building and Marine Façade on Vasilevskii Island, Kisho Kurokawa's new stadium, and Norman Foster's New Holland complex. At a recent Kennan Institute lecture, Megan Dixon, Research Associate, College of Idaho, described this trend of high-profile, new construction in St. Petersburg through the specific example of the Baltic Pearl, noting its similarities and differences to other projects. Dixon sees this general building phenomenon chiefly as an attempt to put St. Petersburg on the map of world cities, but she has specifically taken a closer look at the Baltic Pearl project in order to access its greater implications for both local and national dynamics. By scrutinizing the major actors who control the project and assessing its reception among St. Petersburg inhabitants, Dixon not only elucidated the politics behind urban renewal in St. Petersburg, but to shed light on the evolving nature of Sino-Russian relations.

The Baltic Pearl project occupies an entire district to the southwest of St. Petersburg and includes space for commercial activity, residential use, and social services. The whole project is being financed and planned by a consortium of companies from Shanghai, China. The main investor is the Shanghai Industrial Investment Company (SIIC), which, Dixon found, is primarily capitalized by the Shanghai municipal government. According to reports, the Baltic Pearl constitutes the largest single investment project that Chinese firms have initiated outside the borders of China, not to mention the largest coordinated Chinese endeavor in Russia.

Dixon discussed the intentions of this major investment project based on statements made by top project leaders and city officials, numerous interviews with representatives of the Baltic Pearl, and assessments of business, construction, and promotion plans. Images from early Baltic Pearl design books describe the Baltic Pearl as a symbol of Sino-Russian friendship, linking the two countries together. The project is also grounded in practical considerations. For the Chinese, Russia's lower quality of architectural competition presented an ideal location to test their capacity to complete such a large project outside of China. Dixon's interviewees also suggested that the Chinese see the Russian location as a jumping-off point for further activity both within Russia and in Western Europe. For the Russians, the building of the Baltic Pearl helps to accomplish St. Petersburg's goal of constructing an official façade along the water that would reclaim the waterside as a prestige site for retail and residential space – the face of the city.

Unlike other similar European projects, such as Hamburg's China Centre Europe and Rotterdam's European China Centre, the Baltic Pearl has been consistently presented as European rather than Chinese, as intended for Russian residents and businesses. Dixon suggested that the anticipation of popular resistance from Russians may have shaped the way the project has been presented to St. Petersburg residents. Early press speculation about the complex including a Buddhist temple and a branch of the Peking opera stirred up indignation and anxiety among Russians. Some Russians expressed to Dixon fears that the Baltic Pearl would become a ghetto for illegal Chinese labor migrants. In interviews, representatives of the project assured Dixon that the Baltic Pearl would bring "globally approved forms" and "the most popular, successful, European lifestyle to St. Petersburg." Similarly, the project's webpage suggests that the Baltic Pearl is "the choice of successful people" – implying white collar workers and middle class.

Despite Russian xenophobia, local civil society groups involved in urban development have no pretensions toward the Baltic Pearl. Dixon argued that their lack of complaint may indicate the Baltic Pearl project's potential to succeed in its endeavor and to provide alternative urban development practices.

Written by Sarah Dixon Klump