I have my first order to Russia and am having this issue too. I'm trying to print DC label for First Class to Russia and I got a message that says "Shipments to Russia must be completed at local Post Office". And now the Print Shipping Label button is grayed out, so I can't click it.
If this is true, I'm really bummed we weren't told ahead of time because now I'm going to lose money on shipping since I quoted Etsy rates and not retail rates. I also want insurance on it!!
If we cannot use Etsy shipping for Russia, is there anyway to know of other countries like this too? Because it means I'm going to have to go back and change ALL my shipping again to put the retail rates for Russia.