This is going to spell the death of the Olympics. The countries are not going to change. They will just stop participating, or have their own Olympics.
There was a story not too long ago about how the number of countries that can afford to sponsor an Olympics is extremely limited. They never reach break (let alone turn a profit) for the host nation and city, are all about which place can and will pony up the $$$$ for a prestige event.
This now removes Russia and China from the list of potential hosts. Probably a few other former Soviet and Asian nations as well.
Functionally, this creates a much larger problem for the Olympics in finding a suitable and willing host, than for the nations that will be denied the privilige of pouring their treasuries into a white elephant event.