The British Council's head said the Russian authorities have made it impossible for the organisation to continue working in St Petersburg and Yekaterinburg.
Council chief executive Martin Davidson said he had therefore decided to suspend operations in both cities.
British Foreign Secretary David Miliband described Russia's behaviour as reprehensible and not worthy of a great country.
Mr Miliband told the House of Commons that the EU presidency had agreed to issue a statement on behalf of all European governments over the row.
'Russia's actions therefore raise serious questions about her observance of international law, as well as about the standards of behaviour she is prepared to adopt towards her own citizens,' he said.
However Mr Miliband insisted Britain would not retaliate by taking similar action against any of Russia's cultural activities in Britain.
