The Russian education system is so bad that most are not smart enough to realise they are being lied to. Those that do realise are in opposition and threatened constantly by Putin and his oligarchical cronies. And those that do realise and are not in opposition are smart enough to keep their mouths shut so that they do not get targeted.
Putin basically runs a nationalist message which is always lapped up by the uneducated, and (as a result of poor education) bigoted, masses. The life expectancy in Russia is dire, the quality of life is dire, the social freedoms are dire. The situation in Russia locally is becoming so bad that even Putin knows he will struggle in the near future.
To combat this future struggle Putin has basically gone on a foreign imperialistic crusade. All the attention is on foreign, not local, problems and he preaches a nationalist message about saving Russian speaking minorities in Crimea and eastern Ukraine. It's just another way of galvanizing the bigoted, uneducated masses that will likely keep him in power.
Such a strategy, while it may have been successful many times in history, may not be so effective today though. The EU and USA as a strong combined power, along with NATO, did not exist when these kind of policies were working in the past and they will likely force Putin to back away and eventually admit defeat. But probably not before his next election in 2018, sadly.