The bear was gunned down by a policeman amid claims officers then extracted its gallbladder to see on the black market for around £300 as a traditional boost to male sexual performance.
The beast was shot in Makarov on Sakhalin island after encroaching the town in search of food.
But locals said it was not aggressive until residents taunted it with dogs.
In one video, the animal is seen lashing out at a dog.
The bear retreated to the local river where a policeman shot the wild animal, which was then tethered to a quad bike and driven through the town as police appeared to goat over its slaying.
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But witnesses say there was no need to gun down the cub – and also claim a wound on its carcass indicates its gallbladder was extracted soon after death.
Bear gallbladders – and bile – are seen as a popular boost to male sexual performance in Asian countries even though such a notion is dismissed by mainstream medics.
They are also used for treatments for cardiac problems, eye puffiness, asthma, cancer, and burns.
They can be sold for £300 on the black market in Russia but fetch 30 times as much in China or South Korea.
“The bear cub was walking along the streets and in the yards [of blocks of flats], afraid of passers-by,” said an eyewitness.
“Apparently it was looking for food.”
People taunted it with dogs but “it had not shown aggression”.
The police now face a probe into whether the bear was legally shot. Local conservation officials are taking evidence from witnesses, reported The Siberian Times.
A police source said: “After the bear was shot, its body fell into the river.
“It was impossible to pull it out manually.
“It was tied to a quad bike and dragged to the road.
“Then it was loaded into a car and taken away to the woods where it was buried.”