The new Cyprus based project will be named Charlie Airlines.
The company will have a fleet of two aircraft, which is expected to increase over time, the report added.
The airline is slated to launch flights in the fourth quarter of this year.
Siberia 7 – or S7 Airlines is headquartered in Novosibirsk Oblast, Russia, with offices in Moscow.
As of 2008, it was Russia's biggest domestic airline. Its main bases are Domodedovo International Airport and Tolmachevo Airport.
S7 has operated scheduled passenger flights to destinations in Russia, as well as international services to Austria, Armenia, Azerbaijan, Bulgaria, PR China, Czech Republic, Egypt, Georgia, Germany, Hong Kong, Ireland, Italy, Kazakhstan, Korea (South), Spain, Tajikistan, Thailand, Turkey, Turkmenistan, Uzbekistan, Ukraine and the United Arab Emirates.
Source: Famagusta Gazette