It's a combination. Russia is a value-extracted, not a value-added, economy. The lack of reform, lack of property rights and lack of rule of law is keeping Russia a kleptocracy with rent-seeking behaviour right now. Those are not the conditions under which there will be a generalized prosperity. The sanctions add to that and put pressure on the system.
Anders was spot-on recalling the 1980s. It reminds me of the early 1980s, the late Brezhnev era, when Russians were quietly whispering that they couldn't go on like this and they didn't know what to do. They have reached a developmental dead end as long as Putinism is in effect.