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@Everyone else - we are working on improving invites and connectivity.
The reason why your friend and you are not in the same region is quite simple - regions are determined by the lowest ping taken on the servers. Even if you are 10 miles far from your friend and he has a lowest ping from Russia than Europe while he is living in Europe, it's default server location in parameters will be Russia because of the lowest ping.
Moderators said that it will be fixed in a new update - they are currently working on it, so don't worry about it. I mean, that's not the biggest issue we've ever hear about - the only thing needed would be an error notification message explaining you can't join your friend because of region servers, and then everything would be perfect for everyone. Yeah it's probably weird, no it was not dumb - just think about creators which didn't know that problem would trigger that many people.