The report said the sanctions would target Turkey's Presidency of Defense Industries and its head Ismail Demir. The long-anticipated move could be announced any day, the report added.
The Presidency of Defense Industries is a governmental body overseeing weaponry procurement and development.
Turkey opted to purchase the S-400 from Russia in 2017 after negotiations for the acquisition of its US counterpart, the Patriot system, broke down due to disagreements between the two countries over technology transfers.
The US responded to the delivery of the first batch of S-400 batteries by removing Turkey from the F-35 fighter jet program on the grounds that Russia could use the air defense system to gather information on the advanced capabilities of the US aircraft.