Russian President Vladimir Putin has signed into law a bill which allows him to respond to sanctions by the United States and other "unfriendly states," the Russian government said Monday.

The law authorizes the Russian president to ban or restrict cooperation with entities of "unfriendly states," according to a statement published on Russia's legal information portal.

Foreign entities could be prohibited to provide services for Russia's central and local governments, conduct trade with Russian counterparts, or participate in the privatization of Russian property.

The bill was passed by the Russian parliament before Putin signed it into law.

The move comes in response to U.S. sanctions in April on 38 Russian individuals and entities, including seven business leaders and 17 senior officials, for their alleged "malign activity" around the world.