Russia has been banned from competing at the 2018 Winter Olympics in Pyeongchang, South Korea by the International Olympic Committee, over what it calls a "systematic manipulation of the anti-doping rules".

Key points: Clean athletes can still compete without Russian flag

Clean athletes can still compete without Russian flag Russia's Olympic Committee president says athletes will appeal

Russia's Olympic Committee president says athletes will appeal Russian sports federations express anger at decision

It will, however, allow some athletes from the country to compete as an "Olympic Athlete from Russia (OAR)" without their national flag or anthem.

Russia could refuse the offer and boycott the Games.

Russian President Vladimir Putin has previously said it would be humiliating for his country to compete without national symbols.

"An Olympic boycott has never achieved anything," IOC president Thomas Bach told a media conference.

"Secondly, I don't see any reason for a boycott by the Russian athletes because we allow the clean athletes there to participate."

The sanctions could be challenged at the Court of Arbitration for Sport.

The IOC also banned Russian Deputy Prime Minister Vitaly Mutko for life from the Olympics for his role in the country's doping program, and suspended Russia's Olympic Committee (ROC) president Alexander Zhukov as an IOC member.

Mr Zhukov said Russian athletes would appeal the ban.

A fine of $US15 million ($19.7 million) was also imposed on the ROC to pay for investigations into the case and to help fund anti-doping work.

"As a former athlete I am feeling very sorry for all the clean athletes who are suffering from this manipulation," Mr Bach said.

"We had a Russian delegation today and gave them again the opportunity to express themselves.

"In this meeting this afternoon the president of ROC has apologised."

The IOC told a media conference that a 17-month investigation headed up by the former president of Switzerland, Samuel Schmid, confirmed "the systematic manipulation of the anti-doping rules and system in Russia".

Mr Schmid told journalists: "The results are not based only on [whistleblower] Grigoory Rodchenkov's testimony.

"There is scientific evidence, witness statements, documents and correspondence.

"The facts are that in Russia there was systemic manipulation of doping and the anti-doping system … that also took place at Sochi 2014 [Winter Olympics]."

Australia's 2018 Olympic team chef de mission Ian Chesterman said Russia had breached the trust of the Olympic community and the right decision was made.

"The culprits, the corrupt, have been dealt with," Mr Chesterman said in a statement.

"Russia, and all involved with Sochi 2014, had a responsibility to nurture the Olympic Games and respect the athletes competing by providing a fair competition.

"Clearly, across so many levels, that trust was abused."

Russian sports federations insulted, 'shocked'

The chief of the Russian Bobsleigh Federation says he is "shocked" by the IOC decision. ( REUTERS: Fabrizio Bensch )

The president of the Russian Skating Union said the IOC decision was offensive and insulting, R-Sport reported, while the president of the Russian Bobsleigh Federation said he was "shocked".

"It is completely unjustified. I consider that this decision will deal a great blow to the whole Olympic movement," Russian Skating Union president Alexei Kravtsov said.

The head of the Russian Curling Federation said the decision was "unprofessional".

"I am profoundly convinced that it was made under pressure," the federation's president, Dmitry Svishchev said.

"Someone needed Russia not to participate in the Games."

The IOC's decision comes 18 months after it had refused an outright ban of Russian athletes at the 2016 Rio de Janeiro Olympics and told international sports federations to decide individually on the participation of Russians in Brazil.

While all the track and field athletes bar one and the entire weightlifting team were banned from Rio, about 70 per cent of Russia's original 387-strong squad ended up taking part at those Games.

However, Mr Bach said on Tuesday that the situation was different now.

"[Ahead of Rio] there was no opportunity to hear the Russian side, and at the time of Rio it was mainly about the failure in the Moscow lab," he said.

"Now it's about the manipulation of an Olympic lab. The conditions then and now are totally different."

Tuesday's decision also looks to have taken into account growing vocal protests from other countries, major national anti-doping agencies and individual athletes who felt they had been robbed by their Russian opponents for years and had demanded a full suspension of Russia.

Russia has repeatedly refused to accept that a state-sponsored doping program existed.

Instead, Russia blames Grigory Rodchenkov, the former director of Moscow and Sochi testing laboratories, as a rogue employee.

It wants the scientist extradited from the United States, where he is a protected witness.

State media said Russia would not broadcast the Olympics without the Russian team's participation.

The decision comes seven months before Russia hosts the football World Cup.

AP/Reuters