While agreeing with SA, I might add that Oracle of course works with cyrillic characters, if set up properly.
Check the
NLS_LANG
settings on the server AND the client that they support the language you use.
Note that the Server and the clients need to have the same setting and that you can't really change the setting on the server after installation while the
NLS_LANG
settings affects the tables on file level.
The best
NLS_LANG
setting is of course to use one of the UNICODE settings and not some national codepage, that would effectively turn varchar2 into nvarchar2.
More on
NLS_LANG
here[
^].