The UK and its western allies have been ratcheting up sanctions against individuals and companies linked to President Putin since the invasion of Ukraine was launched on 24 February.
The government said Thursday's sanctions against "seven of Russia's wealthiest and most influential oligarchs" were part of the UK's "efforts to isolate Putin and those around him".
Among those sanctioned was Oleg Deripaska, a leading industrialist who has had links with British politicians.
Once one of the richest men linked to President Putin, Mr Deripaska made billions from his stake in Russia's aluminium industries, including EN+ Group, and has a multi-million pound property portfolio in the UK.
Andrey Kostin, chairman of VTB bank. He "has long supported Kremlin objectives" through the bank, which has already been sanctioned by the UK
Alexei Miller, CEO of energy company Gazprom. An ally of Mr Putin from his St Petersburg days, he is "one of the most important executives supporting the Russian government"
Nikolai Tokarev, president of the Russia state-owned pipeline company Transneft, He served with Mr Putin as a KGB officer in Dresden in East Germany in the 1980s and the pair have "remained closely associated ever since"
Dmitri Lebedev, chairman of the board of directors of Bank Rossiya. Sanctioned by the UK, IS "widely considered to be the Kremlin's private bank"
Foreign Secretary Liz Truss said the government had targeted the oligarchs to "ramp up the pressure on the Putin regime and choke off funds to his brutal war machine".
She said: "With their close links to Putin they are complicit in his aggression.
"The blood of the Ukrainian people is on their hands. They should hang their heads in shame."
Labour's shadow foreign secretary David Lammy said the sanctions were the "right decision" but "should not have taken the government weeks".
"Too few oligarchs linked to Putin's rogue regime have so far faced sanctions from the UK government," Mr Lammy said.
The government has been accused of moving slower than western allies the US and the EU in its sanctioning of individuals linked to President Putin.
The government's Economic Crime Bill, which is expected to become law later this month, is designed to harden and quicken these sanctions.
The government says the bill will also stop wealthy Russians using the City of London for money laundering and hiding gains linked to organised crime.