It shoots the 7.62X54R cartridge which is very close to the 30-06 in ballistics. Surplus ammo is still cheap for range shooting. The surplus ammo is probably corssive primer ammo so you would need to clean quickly after shooting with ammonia and water to remove corrosive residue followed by normal cleaning. I believe S&B makes soft point hunting ammo, check MidwayUSA.com for ammo. It should make a fine hunting gun.
Barnaul makes hunting ammo
The reason? The primer uses fulminates in order to set off the main powder charge in the cartridge, this produces salt, salt will, of course, rust the crap out of a barrel and other components.
The rifle you plan to buy is a good one if somewhat ugly compared to others and would make a great gift to a gun lover.