Whether right or wrong, it is a known fact that when a condemned felon is executed in China his family are charged for the cost of the bullet used to kill him.
Unfortunately primitive societies/individuals, whilst realising a person has t be held responsible for their own actions, fail to realise that responsibility does not extend to family or friends or anyone else they know. We can only hope that eventually, that which is self evident to anyone who thinks, will become self evident to those individuals and societies who are hard of thinking also.
I wouldn't dismiss the idea so readily. If it can be proved their family profited from, encouraged or turned a blind eye to their illegal activities they should face some consequence. Perhaps something akin to the RICO laws in the US.
When the state itself is a sponsor and exporter of terrorism, as Putin's is, then measures like this lose some of their moral force.
This is just another piece of repressive "catch-all" legislation by an increasingly paranoid and isolated head of state
Believe it or not the Russian government threatened to send Ukraine a bill (!)
Mind you a lot of these pronouncements are undoubtedly for internal consumption.
Paid for it?
Well, the Russian taxpayer is paying the Russian government to subsidise it
And they are stealing gas and water from Ukraine as well
Generally speaking thieves don't pay from what they steal :-)