Putin reorganized and strengthened the security apparatuses, giving him greater ability to dominate the people under one political party, purge foreign influence from the economy and build a cult of personality among the people.
Putin then set his sights on a Russian empire of sorts in order to secure the country’s future. This was not a matter of ego for Putin but a national security concern derived from centuries of historic precedent.
They have reasons to need that, of course, as Stratfor discusses. Russia's core sits on a flat plain and only territory gives them the space to trade for time in case they are invaded. Although the historical reasons for wanting a buffer zone in the west seem ludicrous given Europe's trajectory on defense matters. But it makes sense to Putin, so that's where he is going. As I've said in other contexts, it doesn't matter if something makes no sense to us. It matters if it makes sense to the people who have to make the decisions.
But just because it may make sense for Russia to want that buffer doesn't mean it is in our interest to acquiesce to that objective. Or in the interests of the buffer zone people. Or, for that matter, the interests of the Russian people who must live under an autocrat to get that buffer zone.
But that's the way it is going. "Reset" means something completely different to Putin. They most certainly have more territorial demands.