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The deal covers a strategic partnership, initially foresees bilateral sale of tickets, codesharing, and frequent flyer programmes by 2008.
AiRUnion operates to 35 destinations across Russia. Lufthansa operates 200 weekly services to 18 cities in Russia and CIS.
At the meantime, Lufthansa will also be moving its Moscow operation from Sheremetyevo to Domodedovo from the launch of 2008 summer timetable. Domodedovo is a strategic hub of AiRUnion in Moscow.
AiRUnion entered a similar deal with another Star Alliance member carrier Austrian earlier this year.