mechanical watches have "jewels" which are synthetic crystals, generally sapphires that act as bearing surfaces for gear shafts and part of the escapement to keep down friction of these surfaces. Most high end wrist watches have 21 Jewels, Pocket watches will have 23J anymore than that is generally considered redundant and unnecessary.
As far as the watch: I think it is Russian made by the inscription at the base of the dial. I've seen these for sale on Ebay a few years ago, but never considered them to be Russian because the subject matter was rather odd commemorating a German Fighter plane on a Russian watch.