I recently bought a few hundred rounds of Barnaul for real cheap(.09 a round).  I was curious enough about this stuff that I decided to do some ballistics tests in phone books.   I found at 70 yards this ammo doesnt fragment at all.   The bullet got semi-flattend on one side and the bullet elongated, but no fragmentation whatsoever.
You really do get what you pay for with this stuff, accuracy isnt good at all, the HP round doesnt fragment, and the rounds that I got from online came with the red waterproofing on them.
I found Wolf 55grain FMJ to give me better accuracy in my Lo Pro and the Wolf rounds I got from the store near my house didnt come with red waterproofing.

I have some pics for you guys, but I need a site to host them for me.

My experience has been opposite of yours.

I can't get any Wolf ammo to group in the same state.  On the other hand, the Barnaul groups well out of my Oly PCR3.  I couldn't care less about fragmentation in Russian ammo.  For real defensive ammmo, XM193 is my round of choice.  For plinking, Barnaul/Silver Bear is my ammo of choice.

Never rely on steel-jacketed ammo for fragmentation. Silver Bear 62gr HP did fragment for me (in water), but I still wouldn't rely on it to do so in a dire situation.

If Barnaul doesn't group for you either, and Wolf does, then no biggie. As long as your rifle digests [i]some[/i] kind of cheap plinking ammo, you can be happy about the cost saving.