The gist of it is that Ms. Klugh wanted him to kill her because they have been captured and they have to do anything to keep them out of "the territory", but Mikhail says there is another way out. Ms. Klugh orders him (presumably to shoot her).
Lostpedia has posted the conversation both in Russian and in English. If you look at Mikhail Bakunin's Lostpedia Page and scroll down towards the bottom, you will see the conversation.
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