It’s derogatory. It’s a play on the stupid “Z” they had on all their vehicles when they invaded Ukraine. “Cuntistan” would probably have got me banned. Anyway, I’ll misspell the names of any country I loathe, as much as I like :)

The ‘z’ for me emphasizes the fact that not all russians are war hungery, ignorant ruzzians. Just like all Americans are not Magatz