The Russian foreign ministry had formally asked him to expel 35 US diplomats in retaliation.
Russia denies involvement in hacking, calling US sanctions "ungrounded".
Russian Prime Minister Dmitry Medvedev accused the outgoing administration of President Barack Obama of ending in "anti-Russian death throes".
Diplomatic spat goes undiplomatic
Under the US action taken on Thursday:
- Thirty-five diplomats from Russia`s Washington embassy and its consulate in San Francisco were declared "persona non grata" and given 72 hours to leave the US with their families
- Two properties said to have been used by Russian intelligence services in New York and Maryland will be closed
- Sanctions were announced against nine entities and individuals including two Russian intelligence agencies, the GRU and the FSB
Mr Obama, who will be replaced by Donald Trump on 20 January, had vowed action against Russia amid US accusations that it directed cyber-attacks on the Democratic Party and Hillary Clinton`s campaign.
Emails stolen from her campaign manager and from the servers of the Democratic National Committee - some containing embarrassing information for Democrats - were released during the election campaign.
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