The Alexander courtyard, which was bought by Russian Federation in 1859, is meters from Jerusalem's Church of the Holy Sepulchre.
Russian President Vladimir Putin has signed an order pardoning Israeli citizen Naama Issachar, who was convicted on drug possession and contraband charges.
A presidential decree pardoning Naama Issachar on "humanitarian principles" was effective immediately, the Kremlin said.
The decision to pardon Issachar came ahead of a visit by Israeli PM Benjamin Netanyahu, who is set to meet Putin in Moscow on Thursday.
"I thank my friend President Putin for having pardoned Naama Issahar", Netanyahu said in a statement before leaving Washington.
The 26-year-old backpacker was arrested in April at a Moscow airport, where she was transferring en route from India to Israel.
Russian authorities said they found nine grammes (three ounces) of cannabis in her checked luggage.
On October 11, Issachar was sentenced to seven and a half years in prison.
When travelling to Israel last week for commemorations for the liberation of the Nazi death camp at Auschwitz 75 years ago, Putin appeared before the cameras with Issachar's mother and Netanyahu.
Russia's parliament last week passed the first reading of Mr Putin's amendments, which, however, brought little clarity as to which role the Russian president might take beyond 2024. Israeli media reports alleged that Russia hoped to use Issachar as a bargaining chip to persuade Israeli authorities to send Burkov home even though Russian officials never linked the issues. An Israeli backpacker serving prison time in Russian Federation on a drug conviction is appealing her case and says she was wasn't provided a translator or lawyer after being detained at a Moscow airport.
She has denied smuggling drugs, noting she had not sought to enter Russian Federation during the layover and had no access to her luggage during her brief stay in Moscow. The woman, who was traveling from India to Israel, was caught when a sniffer dog discovered that she happened to have some 10 grams of hashish in her luggage.
She's been serving her sentence in a prison colony just outside Moscow.