Under the decree, the import of certain products originating from Turkey will be temporarily banned or restricted.
A number of Turkish organizations operating in Russia will also be restricted.
Employers in Russia will be prohibited from hiring Turkish nationals for work starting January 1, 2016.
The ban will touch upon only new workers, the decree said, adding that employees who already officially hired as of December 31, 2015 will not fall subject to the sanctions.
The government has been tasked by the president with introducing a ban on charter flights between Russia and Turkey. Russian travel agencies have been ordered to stop selling tours to Turkey, the Kremlin announced.
Bringing Turkish products into Russia for personal use will not be restricted, the decree said.
The visa-free regime for Turkish nationals traveling to Russia will be suspended starting from 2016, the decree signed by the Russian leader says.
It will not affect those who have residence permits, as well as Turkish diplomats working in Turkish embassies and consulates on the territory of Russia, and their families.
A list of contracts not to be affected by the new economic measures will be compiled by the Cabinet, the Kremlin said in its Saturday statement.
Putin ‘fully mobilized’ to tackle threat
President Vladimir Putin is fully mobilized to tackle what the Kremlin regards as an unprecedented threat from Turkey, the Russian leader’s spokesman said Saturday.
In comments which underscore how angry the Kremlin still is over the incident, Dmitry Peskov, Putin’s spokesman, called the behavior of the Turkish air force “absolute madness” and said Ankara’s subsequent handling of the crisis had reminded him of the “theater of the absurd.”
“Nobody has the right to traitorously shoot down a Russian plane from behind,” Peskov told Russia’s News on Saturday TV program, calling Turkish evidence purporting to show the Russian SU-24 jet had violated Turkish air space “cartoons”.
In another sign of tensions after its shooting down of the Russian plane on Tuesday, which resulted in the death of one of the pilots, Turkey’s foreign ministry advised people on Saturday to postpone all non-urgent travel to Russia.
Peskov said the crisis had prompted Putin, whose ministers are preparing retaliatory economic measures against Turkey, to “mobilize” in the way an army does in tense times.
“The president is mobilized, fully mobilized, mobilized to the extent that circumstances demand,” said Peskov.
“The circumstances are unprecedented. The gauntlet thrown down to Russia is unprecedented. So naturally the reaction is in line with this threat.”
‘Turkey increases arms shipments to rebels’
The Syrian army said Saturday that Turkey had recently increased supplies of weapons, ammunition and equipment to what it described as terrorists in Syria.
A statement issued by the Syrian army command alleged that weapons were being delivered in shipments which Turkey claimed to be humanitarian assistance.
The Syrian government describes all the rebel groups fighting President Bashar al-Assad as terrorists.
The statement also said Turkey had fired a number of mortar bombs towards Syrian army positions on Friday night.