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Seeing that it's Russians they're dealing with, they probably just paid $19 million for a hole in the floor (for this is what Russian toilets basically are).
Hugh Janus, don't go all eponysterical on us again.
Fans suck waste into the commode.
Basically, this means that the poop gets pulled into a giant plastic bag or tub, where all the fluid is eventually removed. The resulting brick is then moved onto a Progress supply rocket, which will leave the station when a new one is arriving, fire its engines, and burn up in the atmosphere.
The urine is collected separately using the aforementioned funnels, and yes, it's treated and distilled for drinking water. (It's not the only source. The Shuttle brings up a half-ton or so of water every flight.)
Photo of the existing module (bottom; but it uses the same technology you see in the top photos).