The Russians have other priorities, but they are still spending quite a lot on this program and related widebody aircraft activities.
The Russians are currently flight testing the Il-96-400M widebody. And while most of the technology used in that aircraft already existed, like the basic airframe design and the PS-90A1 engines, they designed a whole new glass cockpit for it. I wouldn't be surprised if the avionics were new.
CIAM finished bench testing the PD-35 gas generator recently:
The Russian government will then have to make a decision on the size of the engine to be initially produced based on this technology. It remains to be seen if this will be a 35 ton engine, or a 28 ton engine, or some other power rating. The Russian aviation industry probably wants the 35 ton engine so it can be used on the civilian widebody aircraft, an Il-96 with a new wing and two engines, and the Slon next generation transporter aka PAK-VTA. But the Russian Defense Ministry seems to want an 28 ton engine for the An-124 and to resume its production. If they pick the 28 ton engine, then the 35 ton engine project will probably be delayed past 2030 and won't be available as an option for the C-929.
The Russians are still doing massive spending on the civilian transportation sector. If anything the sanctions only accelerated the spending. Because for a country as large as Russia, with little high speed rail, they need the long haul aircraft.
