I created a small plugin for Cyrillic transliteration (I just created it based on Oleg06's Russian GS language file), so that you can keep using the backend in English (or whatever language) while having support for slug transliteration of titles in Russian (or other languages using cyrillic characters).
Download cyrillictrans plugin (GS Forum)
Usage:
Unzip and upload to your plugins folder.
If you create a page with title "Привет" it will be saved as privet.xml (slug = "privet").
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