Boris Johnson "misspoke" when he told parliament Chelsea FC owner Roman Abramovich was "already facing sanctions", Downing Street has said.
The Prime Minister faced calls to correct the record after he told the Commons the Russian oligarch was among those the UK was targeting in the wake of Russia's invasion of Ukraine.
Britain has slapped sanctions on five Russian banks and three oligarchs with ties to Vladimir Putin after the Kremlin ordered tanks to cross the Ukrainian border on Monday night.
Boris Johnson announced the move against Rossiya, IS Bank, General Bank, Promsvyazbank and the Black Sea Bank after Russia sent "peacekeeping" troops into so-called “People’s Republics” of Donetsk and Luhansk.
Labour MP Margaret Hodge had intervened in parliament as the PM set out the new sanctions regime, saying it had "serious flaws" and should be targeting the Premier League club owner.
"I believe she’s in error… Abramovich is already facing sanctions," Boris Johnson claimed.
But the PM was wrong and No10 was forced to clarify the matter, later telling reporters: “The Prime Minister misspoke.”
Pressed on why Mr Abramovich had not faced curbs, Downing Street added: “Obviously we keep our sanctions regime under review.
"What we’re seeking to do with all our sanctions is make sure we’re acting as much as possible in lockstep with our NATO allies.
“Obviously we will look to target those we think have the biggest impact."
It is understood the Prime Minister will officially correct the record in Parliament.
It came as questions were raised about the Russian President's mental state following his long and rambling address to the nation on state media on Monday night.
Downing Street described it as "a chilling diatribe which was quite devoid of facts", and when asked if he was of sound mind said: “I’m not going to be getting into that”
Meanwhile, Defence Secretary Ben Wallace described Mr Putin's false flag operations as "almost comical".
Speaking at a press conference in Leicestershire, Mr Wallace called the Russian President's speech "full of inaccuracies", adding: "As I have warned and warned the Kremlin for weeks and months that as we knew in 2014 he gets the opposite of what he wants.
"He will get more forces on his borders, but just as he did in 2014, he will no doubt get more spending on defence from Nato to things that strategically would be the opposite of what he should be potentially wanting to achieve."
Speaking of Mr Putin himself, the Defence Secretary continued: "Our resolve has been tested, as has the ambitions of President Putin's legacy.
"President Putin wants a legacy, it's our duty to make sure he gets a legacy, but not the one he is planning.
"A man who doesn't follow international law, a man who is now has a very large army on the doorstep of a sovereign state and seems to not even worry that the false flags and the fake news we are watching is so obvious, it is sadly almost comical."
He added: "The actions we've seen today and last night are absolutely according to his playbook.
"It's according to what he wrote in July last year, and if you want to know what his next intentions are, I recommend you listen to his latest speech, that he made last night, full of huge inaccuracies, one of which was that Ukraine is not a proper state.
"I should remind people, Ukraine has been separate to Russia as a nation longer than it has been part of Russia, that is a simple fact of history.
"He should look at his history books, and not selectively pick dates that suit his narrative."
