Western countries should confiscate all Russian-owned assets. Russia doesn’t deserve to be a state.
Lots of countries don't deserve to be a state. Russia manages to stand out among that crowd, but even so, international relations are about what's possible rather than about what's right. They are a state and there's not much you can do about that shy of war -- which is a really, really bad idea.
There is a lot we can do, starting with ceasing to recognize Russia as a state.