The U.S. and UK have sanctioned President Vladimir Putin's two adult daughters, along with a number of those in his closest circle, as part of their response to alleged Russian war crimes.
They say that it will prevent Putin from moving his wealth around between his family to avoid previous sanctions.
It is part of a package of measures, including sanctions against Sberbank – one of Russia's biggest banks – and a total ban on Americans investing in Russia. The UK has also banned outward investment in Russia, which would cut off a further $14.3 billion.
"I made clear that Russia would pay a severe and immediate price for its atrocities in Bucha," U.S. President Joe Biden said on Twitter.
Sanctions have been ratcheted up after Ukraine accused Russian troops of killing dozens of civilians in the town just outside Kyiv, a claim Moscow denies.
Ukrainian President Volodymyr Zelenskyy on Wednesday urged the West to act decisively in imposing even tougher restrictions on trade with Russia in response to the alleged civilian killings, which he has condemned as war crimes.
Speaking to Irish lawmakers by videolink, he said the West needed to do more to rein in Russia.
"I can't tolerate any indecisiveness after everything that Russian troops have done," he said, adding that some Western leaders "still think that war and war crimes are not something as horrific as financial losses."
Meanwhile, the EU is considering banning Russian coal, which would hit Moscow with a further $4.3 billion of losses. The proposed EU sanctions also include banning transactions with Russia's four biggest banks, and stopping its vessels from entering EU ports.
The wave of new sanctions has been announced as foreign ministers prepare to meet for a NATO summit in Belgium. NATO countries, including the UK and US, will be joined by Australia, South Korea, New Zealand, Japan, the EU, Georgia and Ukraine, in one of the biggest security summits of the year.
Their talks are likely to focus on whether NATO should supply more weapons to Ukraine, and even upscale to more lethal armaments such as tanks.
NATO's Secretary General Jens Stoltenberg warned: "We have seen no indication that President Putin has changed his ambition to control the whole of Ukraine and also to rewrite the international order, so we need to be prepared for the long haul.
"We need to support Ukraine, sustain our sanctions and strengthen our defences and our deterrence because this can last for a long time, and we need to be prepared for that."