I've lived in Moscow for 3 years and found the cost of living far lower than Europe. Surveys like this are deceptive because of the methodology adopted. If you want to enjoy the same facilities as an expat, that you get back home, then yes it is expensive. OTOH, for Russians, things are inexpensive.
To take an example, if you travel from the airport to the city centre (40 km away) by special train, which is quite comfortable, it costs around US$ 5. The poor man's option, might be a minibus *** Metro train which would cost US$1. However, a taxi with an English speaking driver, might cost you $100
Similarly, the average Russian can rent a reasonable (by local standards) apartment for $1000/month. The same sized apartment in an exclusive expat enclave, would cost 5 times more.