This article deals with the geopolitical and geo-economic importance of Caspian Sea Basin, how the geopolitical indispensability and economic viability of this region giving birth to geopolitical rivalry. Cupidity among different nations to exploit the rich energy resources has created a complex web of international politics in Caspian Sea region. It focuses particularly on Russian policies towards Caspian basin geopolitics. The role and importance of other players, position and interest will be dealt with in the changing geopolitical environment of the region.