The slivovarchs... Putin integrated the security services not into democracy but into capitalism.
The FSB is certainly powerful but is not as omnipotent and lawless as the old KGB.
Russian leaders since Yeltsin have turned to veteran military and security personnel simply because of the dearth of trained civilian expertise in the Russian bureaucracy.
This is slowly changing. Russia is not a dictatorship but neither is it a pure democracy. It is somewhere in between.
Even Communist party head Gennedy Zyuganov is part of this game (he has lots of money)...