The rebellious Russian mercenary commander who ordered his troops to march on Moscow before abruptly reversing course will move to neighboring Belarus and not face prosecution, the Kremlin said Saturday, as part of a deal to defuse a crisis that represented the most significant challenge to President Vladimir Putin in his more than two decades in power.

The charges against Yevgeny Prigozhin for mounting an armed rebellion will be dropped and the troops who joined him also will not be prosecuted, Kremlin spokesman Dmitry Peskov announced, and fighters from his Wagner Group who did not take part...