Sorting Contacts in Other Languages

I had a similar problem. Have several contacts in Serbian (cyrillic) others in English. I solved the problem by adding to each contact written in cyrillic new fields for phonetic spelling for the last and the first name.

Unfortunately since your iPhone is set to the default language of English; your contacts in Russian will be sent straight to the # section of your contact listings. The reasons are that the Russian and English alphabets are not associative, and therefore you cannot file Russian characters under English ones. Even though it could make sense that character sounds in Russian could be relatively phonically associated with English ones; it doesn't make sense to program something that heavy into a mobile OS. I have Japanese contacts on my phone, and it is pushed to the # section as well. I'm sorry that I couldn't solve your dilemma, but there isn't a solution (yet).