USA & allies broke up the Soviet Union and put puppet president Yeltsin into "power" and a few oligarchs -- one for media, several for natural resources. The thing with the president is that by new constitution (written by american advisers) president does not have much real power. During Yeltsin's period Russia lost almost all of its military power and at the end of 90s according to american plan Chechen separatists should start a war which would lead to break up of Russia itself into several independent states.
Yeltsin was a puppet, but he, unlike Gorbachev who actually was an american agent, did not enjoy this position, unfortunately he could not do much. That's why he started to drink heavily. He tried to get into real power with the help of
Alexander Korzhakov, but as soon as he realized that Korzhakov has no chance, Yeltsin backed out. At the end Yeltsin managed to pull one little trick -- at the New Year holiday (New Year for Russians is the same as Christmas for Americans) he assigned Putin as his successor (that's a Russian democracy for you
Yeltsin lost the first war in Chechnya and signed humiliating
Khasavyurt Accord and now another war was going on with terrorists invaded Dagestan. Putin quickly managed to pull the shit together and to win that war, that gave him unprecedented popularity and people easily agreed for him to be the next president.
Putin's first steps were to get the oil back into the state's hands, because although Russia was selling a lot of it almost nothing went into budget. He cancelled production sharing agreements, fought and negotiated with oligarchs (this is when Khodorkovsky went to jail, because he did not want to cooperate) and that's how money started to finally flow in the budget.
Since then Russia runs a very nice surplus budget, almost repaid its debts and starting at I believe 2010 or so is doing a huge army modernization. Why? Because American might is based upon the dollar being the reserve currency of the world and other countries by all means are made to use it for trade.
USA runs a huge budget deficit year over year and has to borrow more and more money. Other countries like Russia and China are forced to lend them money by buying their government bonds, it is a modern way of paying the tribute. Because USA can not sell all the bonds they need to sell, they have to print money devaluing the dollar.
USA's survival is based upon dollar, they have to enforce it being the reserve currency. Obama started so many wars not because he is a warmonger, but because he has to, he has to enforce the status quo. Putin sure gets it and that's why strong army is a must for him "no one will prevail over Russia military", "in a meeting in Sochi on November 2013, President Putin said the country's defense budget will reach 2.3 trillion roubles, stressing the huge amount in comparison to the 2003 budget, which stood on 600 billion rubles". I don't think it will be a direct attack on Russia by USA or allies, it would be very hard to justify for regular american people, most likely more Syria style "freedom fighters" and I'm sure Russian military will be ready for it.
Anybody who thinks Russia has nothing but rusty old soviet nuclear warhead rockets is plain wrong. Russia has a history of defeating Napoleon and Hitler -- two military supermachines. As one of the Russian heroes put it "Who will come to us with a sword will die from the sword".
With that being said Putin's favourite methods are political, he does not like making huge changes and bold moves. Look at his latest gains -- no USA strike on Syria (prevented by political move to destroy chemical weapons), no Ukraine deal with the EU (prevented by giving them money and threatening with economic sanctions). So for all those people who compares countries by dollar amounts spent on army -- that's not how politics work. Strong army is a big part, but that's definitely not whole.
How Putin will get back to Saudis? He is already doing it aiding Assad. Saudis want him gone and puppet regime installed, Putin wants independent Syria. So far unclear how will it resolve, but by the looks of it Syrian rebels are on shaky grounds, while Assad seems to be mostly in control of a situation.