There are a few reasons. First, they are one of the few nuclear states in the world. Second, they have a permanent seat on the UN Security Council and so they can veto UN sanctions and military intervention that’s against their interests. They are very they can’t compete with the USA, China, or the EU economically, but that’s not their strategy.
Are they though? They’re rich with oil and gas so other countries tip toe around them to not upset their fuel delivery arrangements and they are good with cyber “terrorism” but their military is full of old useless gear and they don’t have enough personel/gear/money for an actual war. That’s why they do the internet thing instead. They also have nukes so there’s that.
Russias economy is smaller than Canada or Italy in terms of nominal GDP.
However, when we adjust the economy by PPP (Purchasing power parity), ie how much work and how many bodies you can buy with that money inside the country. Then it’s a somewhat different story.
Adjusted for PPP Russias economy is about twice the size of Canadas. On top of that Russia is spending much more of its economy on the military (20% of government spending). Canada could also do that, if it was willing to reduce citizen access to public services and shifts its economy to a more warlike stance. So effectively Russia is spending 20 times what Canada is doing on its military in terms of internal economic muscle. The russian military is also mainly conscripted, so while Canada pays some $40000 a year the pay for your average russian conscript is $360 a year plus food, housing and clothing.
So to sum it up. Russia can continue to be a threatening power because its citizens are willing to accept worse conditions (less consumer goods, smaller housing, worse service and medical care, fewer freedoms and greater sacrifices) and it can much more effectively leverage its economy towards national production of military hardware.
The trouble nowadays is that these psychopaths like Putin and Jinping have forgotten in their hubris and relatively successful asymmetric war is that in a shooting war, both would be absolutely fucking wrecked up against the west, I hope they have people who remind them of that occasionally before we are forced to but make no mistake, it wouldn’t even be fucking close
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