After watching a few more times.
The "flute sound" is more throat singing by the banjo player.
Way cool.

I found an english/siberian translation which came out as:

"It's cold as walrus ****
and were freezing our asses
I wish we were in Florida
and our ice was in glasses"

The second verse was something about riding Harley's instead of walruses

 

wow........

 

I picture these lyrics on a crew t-shirt in 'the store'......(copyright them quick Hugh).

"It's cold as walrus ****
and were freezing our asses,
I wish we were in Florida
and our ice was in glasses"