I'm struggling with the audio to this sentence. At first, I kept hearing "stands" instead of "costs" but upon re-listening, I think it probably has the stress on the first syllable, as is it supposed to be with costs. Nevertheless, I wonder if others have a hard time with this.
Both are equally acceptable IMO but imply something slightly different. Most often, "medicine" will apply to over-the-counter stuff you picked up at the drugstore/grocery store. On the other hand, "medication" almost always implies something a doctor prescribed...stronger stuff than your everyday Tylenol and Pepto-Bismol. If the Russian word doesn't make that distinction then there is no reason for both translations not to be acceptable.