If you decide to do a refund of any kind , make absolutely, positively sure you have the knife in your possession before you issue the refund. Otherwise you will possibly be out both the knife and the refund. I would not even do a partial refund because it could be an extortion tactic. A lot of these folks overseas using freight forwarders ship many items at a time in bulk so you can bet it didn't cost him $60 to ship to Russia as part of a bigger shipment. Paying for his time sets off many alarm bells for me.
Problems like this one are why many of us will not ship to many particular countries overseas like Russia, Indonesia, mainland China, etc. and others where many scams seem to originate from. The only exception I would make to any of these countries is possibly to a forumite with a long proven track record and even then he would have to accept the risk of loss after it leaves the US Postal Service's hands which is the only way I would ship it to any of those countries.