In a strongly worded statement, he called on Moscow to help defuse the crisis there or face further sanctions.
Pro-Russian separatists are occupying key buildings in a dozen eastern Ukrainian towns, defying the central government.
Mr Kerry praised the interim authorities in Kiev, saying they had honoured the agreement struck in Geneva on 17 April to de-escalate the crisis.
But he said Russia had "put its faith in distraction, deception and destabilisation".
"Not a single Russian official has publicly gone on television in Ukraine and called on the separatists to support the Geneva agreement, to support the stand-down, to give up their weapons and get out of the Ukrainian buildings," he said.
He accused Russian media of promoting President Vladimir Putin's "fantasy" about events in Ukraine and said Moscow continued to "fund, co-ordinate and fuel a heavily-armed separatist movement in Donetsk".
"This is a full-throated effort to actively sabotage the democratic process through gross external intimidation that has been brought inside Ukraine," he said.
Mr Kerry said US intelligence was confident that Russia was "playing an active role in destabilising eastern Ukraine" with personnel, weapons, money and operational planning".
He added that the window for Russia to change course was closing and that if it did not choose to de-escalate, the US was ready to impose further sanctions.
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