He should have seen it coming. He squandered all his oil cash on military crap that he has to start a war to use. It should have been re-invested in industrial modernization and diversification.
A vibrant economy never grew under Putin because of his kleptocracy smothered it. No need to innovate in Russia, just pay a bribe to grow your company. There will be no Russian Google type success stories. Sad really. A country with that many smart people and natural resources should do better. But Russian chauvinism always bites them in ass in the end.
That's true. It's Mexico with white people.
The money all goes to the top and then ends up in Swiss bank accounts.
Seen it first hand. It's like a mafia bustout: the connected oligarchs get control of a Russian company doing OK, squeeze the life out of it, let it fall apart when they think there's no more cash to be had.
Then they criticize the "management" for letting it happen.
Like Mexico's oil industry, it wouldn't take much to bring in real foreign investment and management to make things grow. To some extent this did happen under Putin in the last decade, but he and his buddies only let such things go so far: wouldn't want to let the furriners get too much control, cut the locals outta the gravy train.
So you're right, Russian chauvinism bites them in the end.
Most Russians that I know understand this. They have no real feedback mechanism such as the vote because of course that's corrupt. Putin's gang will have to be overthrown by another rival gang, and the cycle will repeat. Assuming he can't get Russia past the current crisis...
PS: they could take advantage of the Ruble devaluation to improve the indigenous businesses. That's what is supposed to happen when your currency devalues relative to the rest of the world. They now have a price advantage for exports and imports: Buy Russian, it's cheaper. But the products have to be competitive, Russians now know the difference - 25 years of European goods being available let them know.
If Putin's gang were to let such markets operate internally - and not try to kill off anyone doing a better job, simply because they are taking away Cousin Yuri's market share (which he paid the bribe for as you said) - then it would happen.
We'll see what he does. Can start a war to divert attention, or try to take care of business. When the world starts clamoring for Russian products beyond resources, then the currency will appreciate naturally.