"I have signed a special document, namely rules to introduce a ban on using certain types of foreign-made machinery for the purpose of meeting state and municipal needs," Medvedev said.
Russian Deputy Prime Minister Arkady Dvorkovich said the ban "concerns primarily construction equipment and mining machinery, as well as utility equipment and other types of vehicles."
Member-states of the Eurasian economic union are not subject to the ban.
Earlier in the day, Dvorkovich asserted that Russian product samples expected to be procured at state and municipal levels have already been developed.
"There are no products for which we will have a gap, making it impossible to buy the corresponding equipment," the official said at a meeting with Medvedev.
Dvorkovich also expressed confidence that the Russian government's ban will serve as impetus for the country's import substitution program.
In December, Russia finalized its 2014 military equipment and arms import substitution plan, eliminating the country's dependency on foreign-made products in the defense sector.
Moscow's plan to replace Western imports in the country's defense, space and energy sectors follows the series of sanctions imposed by the United States, the European Union in 2014 over accusations of interfering in the Ukrainian crisis. Russia has repeatedly denied being involved in Ukraine's internal affairs and has responded by imposing a one-year ban on certain food imports.