As has been said on this thread, I think Putin needs to be isolated. The last thing we want is to galvanise the Russian people to be in his side.I don't think he's particularly bothered about the economic fall-out, or has given it much thought at all. He's isolated from it as an autocrat, and he's not exactly going to have to account for it any time soon to the Russian public. Every time a rival politician comes to the fore, they eat or drink something nasty and/or disappear.
This smacks of of an egotistical, evil autocrat trying to write his name in to history before he runs out of road. He's almost 70 and doesn't have a lot of time left to build his mental legacy.
Sanctions need to be targeted beyond Putin, imo. They need to be strong enough to guide the hand of whoever comes next.