Natalia Ivanova, 26, from the Siberian city of Irkutsk, along with her sister and three friends, arrived in the resort town of Koh Phangan on November 21. She was arrested two days later after a search of her hotel room.
"Russian media reports that Ivanova was found to be in possession of narcotics and faces severe punishment, possibly the death penalty, are untrue," the ministry said in a statement.
Ivanova faces charges of complicity in theft and possession of stolen goods and could be jailed for up to five years if found guilty, the ministry said. Nine Iranians and one Bulgarian were arrested with her.
However, the ministry cited her defense lawyer as saying she is likely to be cleared of the charges, as the evidence is indirect.
