The Collaborative International Dictionary of English v.0.48:

Astrakhan \As`tra*khan"\, a.
   Of or pertaining to Astrakhan in Russia or its products; made
   of an Astrakhan skin. -- n. The skin of stillborn or young
   lambs of that region, the curled wool of which resembles fur.
   [1913 Webster]

WordNet (r) 3.0 (2006):

astrakhan
    n 1: the fur of young lambs
    2: a city in southwestern Russia on the delta of the Volga River