USA individuals also are barred from doing business with them.
The agencies' report reveals that multiple attempts to compromise government entities and energy, nuclear, commercial, water, aviation, and critical manufacturing sectors have been taking place since at least March 2016.
The two organisations believe the cyber-attacks ae part of a multi-stage intrusion campaign by Russian government cyber actors.
"We are writing today to specifically inquire about reported negotiations between Russia and certain countries over sales of the Russian government's S-400 air defense system and whether these reported deals could trigger mandatory CAATSA sanctions", the letter said on Friday. Those targets include officials working for the Russian military intelligence agency, GRU.
The sanctions target 5 Russian enterprises and 15 individuals, 5 of whom had been sanctioned previously under President Obama.
US President Donald Trump has faced fierce criticism in the US for doing too little to punish Russian Federation for the election meddling and other actions.
However, it could help inoculate Trump from persistent claims that he is afraid or unwilling to stand up to Russian President Vladimir Putin or to fight back against efforts to undermine the US' democracy and domestic affairs. He has, however, repeatedly criticized the federal investigation of that interference, and possible Trump campaign involvement, as a "witch hunt". Administration officials said it was retaliation for meddling in the 2016 election, and "malicious cyberattacks". Sixteen of the Russian individuals and entities sanctioned were indicted on 16 February as part of Mr Mueller's criminal investigation.
Trump has not criticized Russian Federation for its election meddling, which included spreading fake news stories and hacking the Democratic National Committee and Hillary Clinton's campaign chief, according to the US intelligence community.
Russian Federation has repeatedly denied all allegations of interference in the United States election, calling the accusations "absurd".
House Energy and Water Appropriations Subcommittee Chairman Mark Simpson also signaled that he was less than positive about the government's efforts. Thanks to pressure from Trump, NATO Secretary-General Jens Stoltenberg said European members and Canada spent 5 percent more on defense in 2017 over 2016 - Putin can't be happy about that.
"The threat actors sought information on network and organizational design and control system capabilities within organizations", according to the alert.
"They didn't hit [Russian President Vladimir] Putin's power structure and they didn't team up with Europe".
The Trump administration is joining harsh global condemnation of Russian Federation for a nerve agent attack in Britain blamed on Moscow, while for the first time imposing fresh sanctions - directly blaming Russian Federation for election interference.
British Prime Minister Theresa May on Wednesday announced that her government would expel 23 Russian diplomats and told them to leave within a week.
Russian Deputy Foreign Minister Sergei Ryabkov is photographed in Geneva, in 2013.
Moscow will respond to a new set of United States sanctions by expanding its "black list" of Americans, Russian Deputy Foreign Minister Sergei Ryabkov said on Friday, according to RIA news agency.