Turns out this is a bug in the market, where carrier-provided apps on your phone will confuse the market into thinking they are a different, existing Market application.
Unsure whether doing this update would replace the carrier-provided app, whichever it is, with this strange Russian one..
Google "Karoges" for more details on a similar issue, where a test app shows up in place of the stock Samsung video player.
Regardless of whether this is harmless or a potential vector for attack, it needs to be resolved on Google Play's end. I submitted a Bug feedback, please do the same if you come across this!