It was quite different from Soviet times, different enough to keep an illusion of things going in the right general direction in a sufficient number of people, especially in large cities, despite impoverishment and wars. The powers that were pushed the idea that it's either these transient problems, or the Communist rule back! (Which was ironic since many of them used to be high-ranking Communist leaders.)
After that, the mafia and KGB have completely overtaken the dominant heights, including the president office, so they strangled non-systemic local corruption. Oil prices also helped. The economy was growing. Some time in 2005, life in Russia might look genuinely attractive, if you happened to live in Moscow. Much like life in Shanghai might look fantastic, rich and free in 2005, too, compared to the times of the Great Leap.
But the authoritarianism bomb kept ticking.
The thing is, under commies people were brainwashed that they live in the best country in the world. It wasn't some kind of evil dystopia with everybody suffering. Yes, they were poor, but they didn't know life outside do compare to understand their poverty. The state gave everybody the bare minimum to live. The state gave the clear direction and meaning of life. Even now there are plenty of (older-ish) people who feel nostalgic about that times!
edit: I agree that in 00s the situation became better, but that's the point, that life in 2005 != 1994.