The recent meeting of the Indo-Russian Business Co-operation Council and the Trade and Investment Forum in New Delhi was significant, in that it took place after the recent summit-level talks between the two countries. This symbolises the fact that both countries assign considerable value to increasing bilateral trade and economic co-operation.

In January 2007, when the Iranian Supreme Leader Ayatollah Khamenei suggested to the Secretary of the Russian Security Council, Igor Ivanov, that the two countries should explore setting up an OGEC or an organization of gas exporting countries similar to OPEC, Ivanov dismissed it as a "general idea" and not a "proposal for discussion".

Vladimir Putin's visit to India on January 25-26, 2007 provided fresh impetus to the strategic partnership between the two countries. The visit reinforced the interests of both states in maintaining their traditionally close and friendly relationship and in strengthening a multipolar world order.

Russia's energy potential is undeniably playing a significant role in its geopolitical and economic revival. Viewing energy as the major source for its growth, Russia is modernizing and diversifying its energy sector. It has been playing a significant role in supplying energy to many countries of the world. It has performed its role consistently and reliably during the past many years and is expected to do so in the foreseeable future as well.

With its economy in a resurgent mode, Russia seems set to regain its traditional influence and power. But in tune with the popular Russian saying that "the bear is still licking its wounds," Russia has to overcome a number of obstacles to sustain its economic growth. Russia's economic resurgence has been made possible by a combination of factors: strong leadership and firm handling of the transition to a free market economy, integration into the world economy, the growth in oil and gas production and increasing oil revenues due to rising prices.

Russia is on the move to become an energy superpower by spreading its influence deep into Western and Eastern energy markets. Possessing the largest reserve of natural gas in the world, Russia's domestic and foreign policies have now come to be largely determined by the energy factor. Apart from the already existing market in the West, Moscow's plan to explore Asian markets was welcomed by the major energy consuming countries such as China, Japan, and the Koreas in the East Asian region.

As the Russian thinking on its near abroad is crystallizing in the wake of the US withdrawal from Uzbekistan's Karshi-Khanabad airbase in late 2005, it appears that Moscow is aiming at strategic predominance in Central Asia and the Caspian Sea region, though it seems ready to accept the reality of free market dynamics. But the fact of the matter is that Moscow has neither the will nor the resources to single-handedly resolve all the problems of the impoverished former Soviet republics of the region.

Russia's concern over Iran's nuclear programme is increasing with every passing day. Iranian authorities are showing un-willingness to accept Russia's proposal to enrich uranium in Russian territory. Russia is trying to resolve an international crisis over Iran's suspected nuclear weapons programme, though its position on Iran has rhetorically moved closer to the European "Troika" (France, Germany, UK). Russia agreed to Iran's referral to the UN Security Council on the condition that the council would take action only after the March 6 IAEA meeting.

The dispute over the price hike for Russian gas deliveries to Ukraine was settled on January 4, 2006 , when Russian energy giant Gazprom and Ukraine 's state oil and gas company Naftogaz reached an agreement on the supply of Russian natural gas to Ukraine through a joint-venture company Rosukrenergo. It focused international attention on Russia 's current policy shift and the mechanisms of its implementation.