The russian people are an economic casualty in this sense. In many ways they did not choose Putin as their leader, but they still serve to support him (intentionally or otherwise) as citizens of the country he sits atop of. The state apparatus has wide reaching access to the resources of russian citizens and businesses, and the means and motivation to squeeze for those resources if and when they are needed to further Putin's aggression. If the goal is to cut off Putin and the russian state apparatus, that unfortunately must include all of Russia as well.

Yes, and don't underestimate about how much money we are talking here, some of those funds have moved billions. Wasn't there one of those Russians that pumped money into every YC company?