Simple answer AFAIK is that Unkil Amirkhan is running a Protection Racket. US is (has been?) in a position to squeeze the Russians who were starving (literally) with promises of hard cash for space and nuclear cooperation. Thus Russian weapon uranium was being ground down and sold for a song to the US, while the uranium price kept rising on the free market. Likewise, the Russian space program's survival depended on NASA $$ based on the ISS. Similarly, Club membership in G-8 , etc. etc.
All these were subject to squeeze if Russia did nuke cooperation beyond certain limits. So, over time, Russian willingness to supply reactors, then fuel, to India, became weaker and weaker, especially with a drunken turd like Boris Y. running the show.
So, the NSG was ganged up to prevent Russia and France from giving India what the US was not willing to give.
This IMO is the reason why even now India bleats that India won't do anything under the IAEA agreement (which basically says that it's fine to trade with India) unless blessed by both the NSG and the COTUS.
This is of course ludicrous - that Russia and France have to wait for the COTUS to say it's OK to deal with India - but that was the reality - maybe until Aug. 11, 2008 when Georgian Yahya set out on his grand conquest.
With the run-up in energy prices the Russian economy has improved, and meanwhile the speculation on uranium prices has burst and the price, which shot from $10 to $123 per whatever unit, is now down to $60. Russia is anyway facing "expulsion" from the G-8, and has cut off its ties to NATO, so the pretences are largely all shattered. Russia is talking about installing sophisticated radar and air defense systems in Syria and maybe Cuba... (and maybe Venezuela?) and may be in a position to support Iranian threats to block the Straits of Hormuz if they are attacked, cutting off 1/3 of world oil supply.
So I doubt if any of these things hold any more. But basically, it's bad news to make deals with Russia because the US and the Protection Racket will sabotage it.
Just the realities of doing business without p***ing off the town mafia...
(and here some people are having orgasms about UNSC VETO

)