Over a year ago, Russia had disagreements with Ukraine and last December had disagreed with Belarus over transit and price agreements. The European Union has been demanding that Moscow ratify the Energy Charter so they would get free access to Russian natural gas and oil reserves. Naturally, Russia has refused the demand but in return is asking for unfettered access to retail energy market in Europe. Newer EU members from the erstwhile Soviet block, particularly Poland, have been calling for an "energy NATO" that could stop Moscow from dominating conversations on energy.

From a Russian point of view, a gas OPEC is financially alluring and politically convenient. It can control prices, resist political and diplomatic pressure, influence such a cartel to hit back with supply embargo, etc. From a Western or Indian point this is not such a good idea as it would definitely increase energy prices and therefore the cost of goods sold. However, unlike the West, India is not badly placed with either Russia or Iran and can therefore be able to negotiate a good deal or at least rely on uninterrupted supply. Some suggest that India can benefit from such a cartel but that is thinking ideologically and not monetarily. Russia and Iran see energy as a revenue generator more than a political tool-the latter is more of a fringe benefit. Hence, it is unlikely they will cut any sweeter deals for India than they would the West. But they may probably make the conversations lot easier.

In a sign of increasing interaction between Tehran and Moscow, Ahmadinejad had invited Russia to participate in the Iran-Pakistan-India pipeline and Putin seems interested to field state-owned monopoly Gazprom. He said that "Gazprom is willing to provide financial and technological resources" for the pipeline as the "project is financially sound and perfectly feasible." One reason for Tehran involving Russia apart from investment and technological reasons may be to deflect Washington pressure to scrap the project.

India too has been keen to involve China with a weaker argument based on a their agreement to cooperate on energy projects. But analysts project that this is a plan to deflect Washington pressure on scrapping the deal.