LH's contract with SVO expires in 2008. There's much talk in the Russian aviation community they'll switch to DME or even to VKO but they might as well stay at SVO, given all the money they sunk in their cargo/maintenance facilities there.

As to SVO2, it's much better than it was even a year ago. And they are not going to demolish it. As soon as Terminal A (SVO3) is ready, all the SkyTeam carriers will move over, freeing Terminal B (SVO2) for the likes of LH. Some reconstruction is in order as well, but still it's going to be a much more tolerable experience, with SU, AF and others gone and freeing up space. Shoud they stay at SVO2, LH is going to be the biggest airline at the terminal as well.