Budgeting in Russia doesn't work like the one in the US. The Russians are more dependent on generating an export surplus so are more reliant on external factors. As long as external factors remain unchanged, things keep moving for them.
Right now, only a small part of their consumer and retail sectors were affected, along with some IT work due to people leaving. The grey market will bring a lot of goods back, India is also heavily dependent on the grey market. Low unemployment in IT will raise salaries and bring more people back into it. So these are temporary issues. Overturning IP laws will help return things back to normal over time.
So until the West does something about Russia's oil and gas exports, nothing will change.
The impact on defence exports via CAATSA was definitely a consolation prize though. But Russia and China will help create new enemies for the US to deal with in the future, that will in turn become new defence markets.
Technologically, the Russians have not stopped developing new tech. Next up is their own bomber, transport and ultra high altitude fighter, all within the decade.