Petroleum prices fell precipitously from approximately $30 per barrel in late 1985 to just over $10 by mid-1986.
The drop crippled the Soviet economy and -- in the opinion of many analysts -- helped expedite the breakup of the USSR. Many in Russia think the United States and Saudi Arabia colluded to bring it about.
Now, with oil prices again falling, and with relations with the United States cooling, that history will likely be on Vladimir Putin's mind when he visits Saudi Arabia, Qatar, and Jordan February 11-13.
"You can say that Russia remembers this problem," said Fyodor Lukyanov, editor in chief of the Moscow-based journal "Russia In Global Affairs." "Today's Russia is very different from the Soviet Union of those days, but nevertheless predictability on the oil markets is a big concern for our economy and for our leadership. Some kind of communication with Saudi Arabia in this regard is very important."
Many Issues, But Energy Key
During his historic trip to the Persian Gulf, Putin is expected to touch on most of the traditional regional security issues: the Middle East peace process, the escalating crises in the Palestinian territories and Lebanon, and the deteriorating situation in Iraq.
But analysts say protecting Moscow's interests in the volatile energy market -- which the Kremlin views as key to Russia's domestic prosperity and international clout -- will be job number one.
"Russia's economy really stands and falls with world commodity prices, oil and gas prices," says Clifford Gaddy, a Russia specialist at the Brookings Institution. "And that uncertainty that is necessarily there is a big question mark, a big obstacle for Russian policies, for both its domestic policy, thinking about the health of the state, for revenues into the budget and other projects they want to undertake, as well as, of course, its international status."
When Putin meets with Saudi King Abdullah, it will be a summit of the world's top two oil producers.
And when he sits down with Qatar's Sheikh Hamad Khalifa al-Thani, it will be a meeting of two natural-gas powers. And it is here where analysts say discussions of an OPEC-style natural gas cartel are likely to emerge. Qatar has the world's third-largest natural gas reserves after Russia and Iran.
Coy On Cartel
Iran raised the gas cartel idea
in January and Putin later called it "interesting" and promised to "think about it."
But Russian politicians have since dismissed it as unrealistic, saying it would limit Moscow's room to maneuver on the international gas markets.
"The fundamental principal of Russian foreign policy is to avoid binding commitments, things that tie Russia's hands in terms of its ability to determine its own destiny, its own future," Gaddy said.
He added that Russia will most likely try to get the benefits of a gas cartel, but avoid the costs and limitations. Most importantly, Russia doesn't want anybody else to have control over its pricing policy.
"They are going to make sure that they kind of run the show or at least that they will be able to withdraw and make their own decisions if they have to," Gaddy said. "So they are very cautious about it in that regard."
Russian Foreign Minister Sergei Lavrov (left) with Qatari Foreign Minister Shaikh Hamad Bin Jassem Bin Jabor Al Thani in Doha in May 2006 (epa)