These are the results of additional investigation:

1. When using bugzilla3 Debian package, bug search by product name with
Cyrillic
characters does not work at all - no matter with PostgreSQL or MySQL
backend.
This means that the problem is not limited to PostgreSQL backend.

2. Bugzilla 3.2.3 (downloaded from www.bugzilla.org) works fine. No problems
at all
and pretty nice localization.

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