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Russian Federation at the time said that it would reserve retaliatory measures to see if the U.S. -Russia relationship could improve under Trump's leadership.

Russian Federation on Friday ordered a reduction in the number of US diplomats allowed in Russian Federation and said it was closing down a USA recreational retreat in response to the US approval of a new package of stiff financial sanctions against Russian Federation.

President Trump said Friday night he would sign the sanctions legislation because Congress was responsive to his input on the bill.

The Senate has approved new sanctions to punish Russian Federation for its meddling in the 2016 election in an overwhelming vote, sending the bill to the White House and setting the stage for a potential showdown with President Trump.

On Friday, Russian's Foreign Ministry ordered a reduction by September 1 in the number of USA diplomatic personnel in Russia.

And it has also stopped them from using a summer house in the capital as well as a storage facility.

It said that this would reduce the number of USA diplomats and staff to 455.

"Our stance remains that we will not accept any extraterritorial use whatsoever of these USA sanctions against European companies", Gabriel said in a statement.

Senate Minority Leader Charles Schumer of NY rejected the idea that Trump would veto the legislation to make sanctions even tougher.

It also prohibits ships owned by the North Korean government or any country not complying with U.N. Security Council resolutions from docking in the USA and bans goods produced by North Korean forced labor from entering the U.S.

Russian President Vladimir Putin said Thursday that he "very much regrets" the worsening of relations between Russia and the United States.

Reports of Russian meddling in the 2016 US presidential election have put a damper on hopes for better ties that the Kremlin had pinned on Trump's presidency. The bill, as written now, targets any company that contributes to the maintenance or construction of Russia's energy export pipelines.

On Wednesday, U.S. lawmakers reached an agreement that cleared the way for the Senate to pass the measure as soon as this week.

Putin claimed that the U.S.is using Russia-bashing as domestic political fodder.

"It's impossible to endlessly tolerate this kind of insolence towards our country", the Russian leader said of the sanctions.

The Russian Embassy in Washington didn't seem to buy the attempt to make nice, tweeting, "Washington still doesn't get the fact that pressure never works against Russia, bilateral relations can hardly be improved by sanctions".

Besides, as he put it, it is important for Russian Federation to establish relations with its European partners in order to "build up a certain line of policy in relations with the U.S., so that it could continue developing projects, but be less subject to sanctions".

If Trump is serious about wanting tougher sanctions on Russian than those Congress wants to implement, there's no reason Trump couldn't sign the sanctions bill and then lobby for stronger measures.