Yes Putin is holding back the prosperity of the Russian people and in two decades has done nothing to diversify the economy away from fossil fuels. If he had done what Norway have done with their good fortune maybe Russia would be even higher than 7th. And a lot of Russian people know this but are too cowed by a brutal system of repression holding them down because everything is geared up to keep Putin in power rather than to work for the interests of the country as a whole.
So, would I be right in guessing that Putin basically used the oil wealth to create a loyal inner circle who are enriched by it?