If you looked at Russia post 91 and under Yeltsin, and compared it with today there a big difference.
Instead of losing a war in Chethyna, they've won one. They've rebuilt there economy, the Kremlin has reaserted its infulance over the Oligarchs.
They've become immune to western pressure, you can't push Putin around where as Yeltsin was a patsy.
They have rebuilt there power in central asia.
They have used there great oil and gas reserves to build strong links with western europe. There Economy has grown by 6.4% annually since 98'
As for an Army, they face no iminent threats from the west and have good relations with there biggest neighbours, India, China, Iran. Why would they spend more than they need on defence? There the 2nd biggest weapons exporters in the world, which has kept there defence industry alive, so when they do decide to reinvest in there armed forces they should have a head start.
Anyway you only need a cutting edge military if your bent on global reach, which russia doesent seem to be.