The sanctions and bans clearly will not work to defuse the Ukraine crisis. The Russian public has bought into Putin's nationalist rhetoric. Putin completely controls the political discourse in the mass media within Russia. This year, Kremlin increased pressure even on web based news, social networks, and blogs. Every Western sanction is met with a counter-sanction from the Russian side. The Russian economy and standards of living may suffer (some have serious doubts about the effectiveness of these sanctions), but I don't think they will make Russia back away.
Moreover, it's not clear what is the goal of the western sanctions as their goal is often amorphously described as "deescalate the situation in Ukraine". What does this mean? Russians think that annexation of Crimea is a done deal. Not just Putin, average Russians too. They certainly won't back away from that. As for the instability in east Ukraine, it's not clear how you prove who is escalating what right now? The locals in East Ukraine are certainly as pissed off at Kiev as it gets, specially after deadly Odesa clashes and the coup in Kiev. I don't think they need a lot of encouragement from Putin at this point.
The best way to defuse the crisis in Ukraine, is to help this country rebuild its democratic institutions and economy. While Ukraine is viewed as the victim in this dispute, its government must do more to accommodate the concerns of its Russian-speaking citizens in the East regions. For one, they should be allowed to elect their local government officials.