The Obama administration has retaliated against Russia for its alleged meddling in this year's presidential election.
The president lodged sanctions against Moscow.
They come after several warnings from the White House following hacks that intelligence officials say were an attempt to sway the presidential election.
Thirty-five intelligence officials were kicked out of the Russian embassy in Washington, and Russian compounds in New York and in Maryland were shut down.
Obama says his executive order will help boost cybersecurity in the U.S.
His administration plans to report Russia's actions to Congress.
A spokesperson for Russian President Vladimir Putin says Moscow regrets the sanctions and will consider retaliatory measures.
Meanwhile, President-elect Donald Trump weighed in on the sanctions in a statement, saying, "It's time for our country to move on to bigger and better things. Nevertheless, in the interest of our country and its great people, I will meet with leaders of the intelligence community next week in order to be updated on the facts of this situation."