It's dirty and will fowl semi-autos and some revolvers will have extraction problems, and the steel casing wear more in the chamber and extraction process. But the powder won't hurt your barrel as long as you clean it afterwards - but it is more corrosive and if you leave your piece uncleaned, especially an older model, you might see some corrosion (easily avoided by cleaning, of course). I have tremendous jamming problems with Russian rounds and find the gun to be horribly dirty after shooting so I've given up on the stuff, figuring the dollar or two saved v. performance of my far more valuable handgun was not a fair trade-off.
I'm not sure I buy the brass collection issue, though. Plenty of other manufacturers use non-brass rounds (e.g., Blazer uses aluminum as do CCI shot shells) and your range isn't banning them. So there's more to the story. The fact that the burt powder smells terrible means there are different chemicals in the mix and, given the source, those could be about anything.