European G8 members want Russia to ratify a charter which would give foreign companies investing in Russian gas and oil production more legal protection and break the monopoly of Russia's giant Gazprom on gas pipelines in the country, but Moscow refuses.

Russia for its part wants Gazprom to have access to European markets in transport and distribution of gas. It is proposing allowing foreign companies to tap Russian gas in exchange for giving Gazprom shares in European supply firms. Such an arrangement is being tried in Germany and could be agreed soon with Italy.

The Kremlin has taken umbrage at Western accusations that it aims to maintain Gazprom's monopoly as an instrument of political pressure, particularly with regard to former Soviet states like Ukraine.

Brussels has offered Moscow a wider free trade agreement to be implemented once Russia enters the World Trade Organisation.

Gazprom must soon select partners to develop the giant Shtokman gas field in the Barents Sea, with a number of Western majors hoping to be included. But in May the Kremlin warned that Washington's reluctance to support Russia's bid to join the WTO could undermine chances of US firms being chosen.

Tokyo and Beijing are competing to ensure that an oil pipeline from Siberia has its terminal at Nakhoda in Russia or Daqing in China respectively.

A proposed gas pipeline from Iran to India via Pakistan is nearer reality following closer ties between New Delhi and Islamabad, despite strong US opposition. Russian President Vladimir Putin wants to see Gazprom involved.

India wants to take advantage of its presence at the G8 summit to persuade the grouping's leading members to lift an embargo on its transfer of peaceful nuclear technology, imposed because it has nuclear weapons but has not signed the non-proliferation treaty.