Yes, it supports cyrillic.
And it is definitely the low-cost bidder.
Note that it locks you into the Amazon bookstore for *DRM'ed* ebooks.
DRM-free books you can, of course, get from anywhere but you might need to convert them if they're not in mobipocket format.
(Look into the Calibre free software package. Most people like it.)
You've checked the manual?
http://kindle.s3.amazonaws.com/Kindl...de_English.pdf
It's not a bad reader at all and the new one has much better ergonomics and controls than the previous generations. If it's limits don't concern you she'll probably enjoy it.
Good luck!