The satellite was put into orbit at 5.28 p.m. Moscow time (2.28 p.m. GMT).
"This is the first time Russia is launching a German military spacecraft," spokesman Alexei Kuznetsov said earlier.
In 2003, Russia's state arms exporter Rosoboronexport and German COSMOS International Satellitenstart Gmbh (a subsidiary of OHB Systems AG) signed a contract on the launch of five SAR-Lupe satellites until 2009.
The German satellite system is designed to provide high-resolution radar images to NATO military commanders in Europe. It offers spatial resolution of less than 1 meter, and allows imaging at night and through clouds.
The Cosmos-3M is a liquid-fueled two-stage rocket, first launched in 1967, with over 410 successful launches to date. The booster has been designed to lift a payload of up to 1500 kg (3,300 lbs) into low, medium and high orbits.