Foreign Secretary David Lammy told the Commons the West has “more cards that we can play” to force the Russian dictator to the table.
Lammy, who met counterparts from the G7 - the world's biggest economies - last week, said Putin is showing no sign that he is serious about peace.
No10 says more than 30 countries have pledged to support a “coalition of the willing” to keep the peace if a deal is reached. Keir Starmer is understood to be ready to commit thousands of British troops for several years to prevent Russia striking again.
US President Donald Trump is set to speak to Russian leader Putin this week to push for a ceasefire.
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Ukraine has agreed to stop fighting if Russia does too, but Putin has put forward conditions - including keeping some seized territories.
Addressing MPs, Lammy said: “My warning to Putin is this: If you are serious, prove it with a full and unconditional ceasefire now.
“And if Putin does not deliver, and I must tell the House that I currently see no sign yet that he is, the G7 meeting helped us ready the tools to get Russia to negotiate seriously. We are not waiting for the Kremlin. If they reject a ceasefire, we have more cards that we can play." The Foreign Secretary said the G7 had discussed ways to squeeze Russia's economy, taking away oil revenues and freezing Russian assets.
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On Thursday, defence chiefs will meet in London to discuss the logistics of a peacekeeping force.
The PM has repeatedly pledged to put British boots on the ground to enforce a peace deal, as long as the US provides a security guarantee.
It is believed around 30,000 troops could be sent by participating nations, but the UK has yet to say h...