According to this Reuters article (via ESPN), Evgeni Malkin will remain in Russia for one more season. He did void his contract with Metallurg, and according to the article, signed an entry level contract with the Penguins. However, he signed a new one year deal with Metallurg, which will make him a free agent in the late spring of 2007.
The details are still sketchy. I'm sure more will come to light about this once the story has been more defined.
This is highly disappointing for the team this season, but this could give one more chance to some of the younger players like an Eric Christensen. I could also see Ray Shero going out and signing a decent second line forward.