More weapons and permission to strike military targets in Russia seems like a proportional response. Otherwise, what's the response for blowing up a nuclear power plant in the future? Slap on the fingers? Russia keeps escalating, it's clear now that this can only be allowed to end with the full defeat of the Russian military.

Whether the dam was blown up or collapsed due to damage is just the difference between shooting someone and slowly poisoning them, it's still murder.

*punishing russia is a threat to your own citizenry which relies on the economy to feed their families. The economy isn't some alien abstract entity.