The 28-year-old joins the Royals on a free transfer with the Berkshire team his second club in England following a spell with Fulham last season.
Director of football Nick Hammond said: "We were always hopeful that a permit would be secured but it's still great to get the deal done. It'll be nice get him in and working with the lads - he's a great individual, and will fit really well into group."
The Moscow-born forward came through the ranks at Spartak Moscow, enjoying a number of loan spells before being sold to Siberian club Tom Tomsk in 2006 where he made his breakthrough.
His goalscoring form earned Pogrebnyak a move to Zenit St Petersburg where he guided them to the league title as well as the 2008 UEFA Cup final against Rangers although he missed the game in Manchester due to suspension.
He moved on to Stuttgart where he spent three years before joining Fulham in January 2012 until the end of the season and the Cottagers were apparently keen to tie the Russia international to a permanent contract after he scored six goals in 12 appearances.
Pogrebnyak appeared at Euro 2012 although his side's participation ended earlier than he would have hoped as they went out at the group stage.
Manager Brian McDermott said: "We're delighted. It's been a long process to get Pavel to the club and now he's officially a Reading player and everyone is looking forward to working with him.
"Having met Pavel, he is a top guy, his work ethic is excellent and I'm sure he will be very important to our group in the coming years."
Pogrebnyak will take a break to recuperate from his involvement in Euro 2012 before joining fellow new arrivals Garath McCleary and Danny Guthrie.
Source: PA
Source: PA