Thank you. And I'm glad to announce that there is a hot fix now for sites that support Russian language.
It may not be perfect yet, but at least it will display the category name on the link clearly.
HOWEVER, HOWEVER, there IS a drawback: it does work on FF, it just does not work on IE (we use the same encoding technique wiki uses, see http://ru.wikipedia.org/wiki)
And also, because it is encoded this way, it will NOT help with search engine.
Anyhow, this is update is recommended for those who support multi-langs.
I think in the next version I will give you another option here: you can tell SSU to always use english names.
I'm also open to suggestion here, if you have experience working with utf-8 url please share it here.