Ivan Kuliak was banned for a year for wearing a national war symbol on the podium.
Kuliak has a right to appeal within 21 days.
The letter Z became symbolic when Russia invaded Ukraine.
It was painted on the side of tanks and military vehicles, as well as being worn by pro-war politicians in Russia.
Kuliak was reprimanded by the Gymnastics Ethics Foundation for violating the rules of the International Gymnastics Federation.
The 20-year-old is not allowed to participate in any FIG-sanctioned event or competition for a year.
A statement added that: "If the protective measures keeping Russian athletes from competing are still in place on 17 May 2023, the ban shall continue and expire six months after the removal of said measures."
Kuliak must repay his prize money of 500 Swiss Francs and pay a contribution of the costs of the proceedings in the sum of 2,000 Swiss Francs.
The head of the Russian delegation, Valentina Rodionenko, and her coach, Igor Kalabushkin, did not violate the rules.