Here's more on the failed rocket explanation, including a video simulation and photos of the rocket trail from the ground up:
This is how the mysterious spiral happened
The biggest problem with the simulation is that it shows the blue stream as pointy at the wrong end. However, if this stream was mostly formed before the white spiral, then the lower part is in the atmosphere and would not tend to disperse quickly. As the rocket gets higher and the atmosphere thins, the blue stream would disperse more. The white spiral would have to be formed entirely out of the atmosphere in order for the interia of the smoke to cause it to travel as it does. Taking these factors into account, the simulation is believable, and the failed rocket explanation plausible.
Keep in mind that it is almost dawn so the dramatic lighting effect is from the sun just below the horizon shining on smoke that is mostly above the atmosphere. The phenomon does not disappear like a pure energy emanation would, but disperses slowly like smoke. So, I have to go with frickin awesome pictures of a lousy Rusky rocket.