The US is set to expel 35 Russian diplomats and shut down two Russian compounds, citing "harassment" of American diplomats in Moscow and alleged interference in the recent presidential election.
Diplomats at the Russian embassy in Washington and the country's consulate in San Francisco will be asked to leave work.
A senior US official has said that they will have three days to leave America.
Two compounds in Maryland and New York will also close by midday on Friday.
US officials have said that Russia allegedly hacked US individuals and political institutions during the presidential run-off which saw Donald Trump emerge victorious. However, Moscow has denied hacking.
Barack Obama said: "These actions follow repeated private and public warnings that we have issued to the Russian government, and are a necessary and appropriate response to efforts to harm US interests in violation of established international norms of behaviour."
Russia's intelligence services the GRU and the FSB are facing sanctions.