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The US has issued sanctions against its fellow Nato ally Turkey over its deployment of a Russian-made missile defence system acquired last year, BBC News reports.

The US says Russia's S-400 surface-to-air missile system is incompatible with Nato technology and a threat to the Euro-Atlantic alliance.

The sanctions announced by the state department on Monday target Turkey's Defence Industries Directorate president Ismail Demir, and three other employees.

They include a ban on US export licences, as well a freeze on any assets that are in US jurisdictions.

"The United States made clear to Turkey at the highest levels and on numerous occasions that its purchase of the S-400 system would endanger the security of US military technology and personnel and provide substantial funds to Russia's defense sector, as well as Russian access to the Turkish armed forces and defense industry," US Secretary of State Mike Pompeo said in a statement.

"Turkey nevertheless decided to move ahead with the procurement and testing of the S-400, despite the availability of alternative, Nato-interoperable systems to meet its defense requirements," he continued.

The move was swiftly condemned by officials in Turkey and Russia.

Turkey's foreign ministry urged the US "to reconsider this unfair decision as announced today", adding that Turkey "stands ready to address this issue through dialogue and diplomacy in conformity with the spirit of alliance".

The ministry warned that US sanctions "will inevitably negatively impact our relations, and (Turkey) will retaliate in a manner and time it sees appropriate".

The US had already kicked Turkey out of its F-35 fighter jet programme over the purchase of the Russian-made missile system.