A couple comments on the FUD:

1) The EU is actually extremely hypocritical. The 500 euro banknote is the highest denomination banknote in the world.

Here is an interesting BBC article on the criminal uses of this note: http://news.bbc.co.uk/2/hi/8678979.stm As the article notes in some countries these notes are know as "bin ladens".

 "The 500 euro note is really the note of choice among criminals.
"We estimate that more than 90% of the 500 euro notes that are provided in the UK have actually gone into the hands of serious organised criminals."

etc etc

2) What is never discussed is the possibility that bitcoin can also be used by the good guys to pay the contractors that inhabit the nether lands of mercenaries, informers, information providers etc etc.

3) The big problem for the Russki's is that BTC can be used to move money outside of the country.