Updated | Russia will not expel US diplomats, Putin says

Russian President Vladimir Putin has said that he will not expel anyone in a tit-for-tat move suggested by the foreign ministry in response to the US sanctions on Russian diplomats.

"We will not create problems for American diplomats. We will not expel anyone," Putin said in a statement released by the Kremlin.

Putin said Russia’s response would depend on US attitudes to Russia under the new administration of Donald Trump, who has repeatedly spoken positively of Russia and Putin. Russia is accused of intervening in the election in support of Trump.

“While we reserve the right to respond, we will not drop to this level of irresponsible diplomacy, and we will make further steps to help resurrect Russian-American relations based on the policies that the administration of D. Trump will pursue,” Putin's statement continued.

The statement also wished Obama, Trump and the American people a happy new year and invited “all the children of American diplomats accredited in Russia to the new year and Christmas Tree in the Kremlin”.

Earlier today, the Russian foreign ministry called for the expulsion of 35 US diplomats in response to a similar move by Washington over hacking allegations.

"Russia's foreign ministry... has requested that the Russian President approve declaring as personae non gratae 31 employees of the US embassy in Moscow and four diplomats from the US consulate in Saint Petersburg," foreign minister Sergei Lavrov had said in televised comments.

"Of course, we cannot leave attacks like this unanswered," Lavrov added. "Mutuality is the law of diplomacy in international relations."

#Peskov: There is no doubt that Russia's adequate and mirror response will make Washington officials feel very uncomfortable as well

— Russia in USA 🇷🇺 (@RusEmbUSA) December 29, 2016

It also suggested banning US diplomats from their dachas (country houses or cottaged in Russia) in Serebryany Bor near Moscow and a warehouse on Moscow's Dorozhnaya Street.

On Thursday, the US state department declared the 35 Russian diplomats from the Washington embassy and the consulate in San Francisco "persona non grata", and gave them and their families 72 hours to leave the US.

Russian government spokesman Dmitry Peskov had said that the principle of reciprocity applies to the situation and that Russia’s response would create “discomfort” for the US.

The Obama administration also imposed sanctions targeting Russia’s military intelligence agency, the Main Intelligence Directorate, or GRU, for “tampering, altering or causing the misappropriation of information” with the purpose or effect of interfering with the election. The measures also cite Russia’s main security agency, the Federal Security Service, for assisting the GRU in the activities.

Accusations of #Russia interfering with #US presidential elections are absolutely groundless

— Russia in USA 🇷🇺 (@RusEmbUSA) December 30, 2016

The sanctions covered also three Russian companies the administration accused of providing material support for the GRU’s cyber operations and four top Russian officials who run the military intelligence agency.

The sanctions reportedly impose asset freezes and travel bans on the individuals and prohibit US citizens and companies from doing business with them.

Russia has denied any involvement and calls the US action "ungrounded".