Since i have 0 years of experience being an expert on foreign policy my opinion means zilch, but this could be a fun exercise.

First, what do we know about Russia? They are an oligarchy, meaning the power and money is concentrated in the hands of a few.

Second, money talks, always.

Therefore, the most effective way to coerce Russia is by directly targeting the money of the oligarchy. That's basically what the recent sanctions are all about. I would continue down that path, threatening more sanctions AND most importantly following through with the threat.

Next, we need this to be multilateral, therefore we need to rally our allies to follow us by putting sanctions on Russia too. A multilateral coalition against Russia is kinda like encircling them, but on paper.

Military action would be the last thing we'd want to do, obviously, and it would definitely need to be a multilateral coalition like NATO.

Lastly, i'd consider getting the UN to issue some resolutions. Even though the UN is quite useless and weak, in the long run it's better to have as many people against Russia as possible.