Immediate aftermath of the collapse of a totalitarian communist system was going to be disarray in no matter who was in charge. The low oil prices certainly didn’t help Russia.
By now former slaves of Russia like Czech Republic, Slovakia, Poland, Latvia, Lithuania and Estonia have all managed to get their things in order and they did that without instituting total control over media, crushing of every dissent or turning elections into mockery or without the support of oil money. These countries can do it while retaining rule of law unlike Russia where law is a formality and steps aside when a phone-call from the rulers comes in.
Putin’s reign has managed very little in actual fundamental development although things certainly look different after more than a decade of high oil prices. By disallowing free enterprise (or a general freedom) Russia is not going to be anything more than a petrostate, although a petrostate at a time of high oil prices.
~Russia is not going to be anything more than a petrostate, although a petrostate at a time of high oil prices~
To prove your idea wrong, just compare a GDP dynamics of Russia and the rest of traditional petrocracies. Also mind that Russia is much more popolous than the rest of these nations which means the oil profits might add lesser to otherall economy but somehow it works the other way in Russia.