The move against Algeria is part of measures taken under a law called Countering America’s adversaries through sanctions act (CAATSA), adopted last year, he said.
The same law imposes sanctions on any party that engages in transactions with Russian defense or intelligence.
Such sanctions can take the form of financial exclusion, a ban of dollar transactions as well as import and export bans.
The U.S. diplomat said talks are ongoing to push Algeria to reduce Russian arms acquisitions.
China was hit by CAATSA this month for engaging in transactions for purchasing Russian fighter jets.
China’s Equipment Development Department (EDD) (formerly known as the General Armaments Department/GAD) and its director were hit by the sanctions for engaging in transactions with Russia’s Rosoboronexport for the delivery to China of Su-35 combat aircraft in 2017 and equipment for S-400 surface-to-air missile systems in 2018.