Bach and his board have come to their decision after reading through the findings and recommendations of a 17-month investigation headed by the former president of Switzerland, Samuel Schmid.
Russian athletes, however, would be able to take part in the Games, the IOC said, as independent competitors "under the Olympic flag".
Schmid said the "systemic manipulation" of the anti-doping rules in Russia "has never been seen before" and explained the legal responsibility for this lies with the sports ministry, as the ultimate power in Russian sport, and the ROC due to its obligations via the Olympic charter and as the signatory of the host-city contract for Sochi 2014.
The commission confirmed that the Russian authorities developed a system that allowed a Moscow laboratory to routinely change positive test results to negative, as well as to tamper with samples during the Sochi Games in 2014.
"This was an unprecedented attack on the integrity of the Olympic Games and sport".
The commission based its findings on an independent report by Canadian lawyer Richard McLaren that was commissioned by the World Anti-Doping Agency and published past year.
Vitaly Mutko, the then minister of sport and now a Russian deputy prime minister, has been banned from any participation in all future Olympic Games.
Alexander Zhukov, the Russian Olympic Committee president who also was suspended from his IOC membership, told TV reporters in Lausanne that one key was preserving the name "Russia" in the team name. This was reported on the website of the International Olympic Committee. Rodchenkov appeared in filmmakers Bryan Fogel and Dan Cogan's critically acclaimed documentary, Icarus, an expose on the Russian state-sponsored doping system. "This should draw a line under this damaging episode and serve as a catalyst for a more effective anti-doping system led by WADA".
The Winter Olympics will be held from February 9-25.
Russian President Vladimir Putin has previously said it would be humiliating for his country to compete without national symbols.
German broadcaster ARD airs documentary alleging systematic doping in Russian athletics. There is scientific evidence, witness statements documents and correspondence.
Speaking earlier Tuesday before the International Olympic Committee announcement, she also said that a blanket ban was undesirable. Russian Federation is stripped of four 2014 titles, and a third of their 33 medals, including the two titles won by their Sochi flag carrier, bobsleigh star Alexander Zubkov.