Help with Russian characters in URL (абвгдеёжзи)

I use vBSEO and need to know the best URL format for SEO for my forum. Right now, my forum uses Russian characters and all canonical URLs become long. The sitemaps also have them like this:

http://www.myforum.com/%D0%B4%D0%BB%...8%D0%B8%D1%85/

But when I click on that URL in the browser it converts to the proper readable form
http://www.myforum.com/для-новоприбывших/

My question is why vBSEO converts Russian letters into their long form?
And whether it's a good idea to have canonical URLs in such a long unreadable form?
Is it a good idea to have proper Russian letters in the URL (абвгдеёжзи)? What's the best practice?

P.S. It looks like this forum simply removed Russian letters in the URL for this post

Hello, welcome to vBSEO .

In order to use non-english keywords on your forum URLs, your database must be converted to UTF-8. Then you should enable vBSEO UTF-8 Support within vBSEO CP.

More info:

[How-To] Keywords in URLs for non-english forums

Thanks!
All I needed to adjust was Disable "urlencoding" in URLs -> YES. There's an option in the settings. Now my canonical URLs have readable Russian characters in them instead of urlenconding!

Disable "urlencoding" in URLs ? NEW!
Select 'Yes' to disable urlencoding (%XX) of special characters in all URLs.

Don't enable this option unless you are asked to do so by vBSEO Support Staff.