Foreign Secretary Liz Truss has said Britain is "ready" to unleash tough sanctions against Russia's elite if Vladimir continues to threaten Ukraine with aggression.
Ms Truss said the "the ball is firmly in Russia's court" and if they do not stand down, anyone sharing responsibility for the Kremlin's "aggression" will have their assets frozen in the UK.
But David Lammy, Shadow Foreign Secretary and Tory backbenchers said the measures do not go far enough.
Ms Truss told the Commons: “No UK business or individual would be able to transact with them and, should they seek to enter the UK, they would be turned back.
“I will not say now exactly who we may target or with what measure, but Moscow should be clear that we will use these new powers to maximum effect if they pursue their aggressive intent towards Ukraine. Nothing is off the table.
“We have no quarrel whatsoever with the Russian people, only with the policies pursued by its leader. It is time for the Kremlin to step back from the brink, to de-escalate and enter into meaningful dialogue."
Until now, the UK has only been able to sanction those linked to the destabilisation of Ukraine.
With Ms Truss's latest announcement, Britain will be able to sanction a much broader range of individuals and businesses can be sanctioned due to their significance to the Kremlin.
Earlier today Number 10 confirmed the measures and said: "The Russian elite should be in no doubt that we have significant powers and will take them further, which will place massive pressure on them should they continue on this path of aggression.
Ms Truss added: "Those in and around the Kremlin will have nowhere to hide."
"I am setting out our readiness to act. We will be laying legislation before the house that will significantly strengthened our hand in dealing with Russia's aggressive action towards Ukraine. It will go further than ever."
Mr Lammy told the Commons: "This is not a matter of simply of individuals, though welcome that is, it's about fixing a broken system, our openness to fraud and money laundering, our inadequate regulation of political donations."
Last week Shadow Attorney General Emily Thornberry urged the Government to utilise a “new generation of sanctions”, including investigating the “unexplained wealth” of Putin allies living in the UK.
Last week, the Foreign Office took the unusual move of naming former a Ukrainian MP as a potential puppet leader who would run Ukraine.
The former head of MI6 said he thought Russia could be stopped from invading Ukraine through sanctions and the provision of military assistance to Ukrainian forces.
Sir John Sawyer's told the BBC he doesn't think Russia will invade Ukraine.
But he added: "It’s right that we build up the cost to Russia now, make clear both from the military side and an economic side that they will pay a price, to try to deter them from the option of a major invasion."
Russian troops have been amassing on the border, sparking fears of an invasion.
The PM was set to speak speak to Russian President Vladimir Putin today, but it has been postponed as Sue Gray's report was released.
It is not yet known when the PM scheduled their call for. It is understood they could speak as early as this evening.
Mr Johnson did say he will tell Putin: "What I will say to the president, as I’ve said before, is that I think we really all need to step back from the brink and I think Russia needs to step back from the brink.
“I think that an invasion of Ukraine, any incursion into Ukraine beyond the territory that Russia has already taken in 2014 would be an absolute disaster for the world, but above all it would be a disaster for Russia.”
Mr Johnson said the UK supports the “territorial sovereignty” of Ukraine but added that he believed Ukrainians will “bitterly” defend the country against incursion.
“The Ukrainians will fight,” he said.
Labour MP Janet Daby asked Mr Johnson when he will next speak to the Russian president given the nature of the situation on Ukraine's borders
Mr Johnson will hold crisis talks with Ukrainian President Zelensky when he travels to the region tomorrow, accompanied by Ms Truss.
