The movie is about "some absurd country", which was a laugh at Soviet Union. A country that is developed enough to send shuttles to space, but on the other hand is an empty desert with overpowered police(in the movie they are called "ecilop"), dumb leaders that people worship etc.
Movie is definitely a must-see.
It wasn't a laugh about Soviet Union specifically; rather a warning where one might end up.
I would say modern Russia is far more like Pluk (planet in the movie) than Soviet Union was - so that's where we actually got.
Planet Alpha near the end of the movie is another laugh at imaginary Socialist paradise - a planet with ideal ecology and society, where you have to wear a gas mask when your breath doesn't qualify. Also, decisions by wise post-human elders can't be overriden.