A picture taken on Thursday shows smoke and wreckage of Malaysia Airlines flight MH17 carrying 295 people from Amsterdam to Kuala Lumpur after it crashed in rebel-held east Ukraine. Photo: AFP

Graphics: AFP/GT

The BUK missile system Photo: AFP

Nearly 300 were killed when a Malaysian airliner crashed in eastern Ukraine, where pro-Russian rebels are battling government forces, an adviser to the country's interior minister said on Thursday.

Malaysia Airlines said via its Twitter feed on Thursday it had lost contact with flight MH17 from Amsterdam at 1415 GMT.

"The last known position was over Ukrainian airspace," it said.

The plane was found burning on the ground in eastern Ukraine, an aviation source told Reuters.

The Boeing 777 plane was flying from Amsterdam to Kuala Lumpur. A Reuters reporter on site saw dozens of bodies scattered around the smoldering wreckage of a passenger jet.

An emergency services rescue worker said at least 100 bodies had so far been found at the scene, near the village of Grabovo, and that debris from the wreckage was scattered across an area up to about 15 kilometers in diameter.

Broken pieces of the wings were marked with blue and red paint - the same colors as Malaysian Airlines' emblem.

The Ukrainian president said that the Malaysia Airlines jet may have been shot down. The Ukrainian interior ministry adviser was quoted by Interfax as saying that the plane was brought down by a ground-to-air BUK missile.

Eastern Ukraine separatist leader Alexander Borodai was quoted as saying that the airliner was shot down by Ukrainian government forces. Kiev has denied involvement

Ukrainian armed forces were not involved in the crash, Interfax said, quoting Ukraine's presidential press service.

"This is the third event in the last few days following An-26 and SU-25 planes being brought down. We do not exclude that this plane was also shot down and we stress that the armed forces of Ukraine did not carry out any action to destroy targets in the air," the press service said.

President Barack Obama and Russian President Vladimir Putin spoke by phone on Thursday and discussed the Malaysian airliner crash.

The route taken by the Malaysian flight is very common between Kuala Lumpur and the Netherlands, said CNN aviation safety consultant Mary Schiavo. She noted that the plane was flying over a troubled area and said close communication with air traffic controllers would be a key necessity.

Shi Yinhong, a professor with the Renmin University of China, told the Global Times that if the plane really was shot down, then the most important question is by whom.

"It's a national disaster for Malaysia, and one which will make the whole world pay more attention to the chaotic situation in Ukraine," he said.

Russia slams sanctions as blackmail

The Russian foreign ministry reacted to fresh US sanctions, issued in the wake of escalating fighting in eastern Ukraine, in a furious statement on Thursday: "We do not intend to tolerate blackmail and reserve the right to take retaliatory measures" against the US.

Russian President Vladimir Putin earlier warned that sanctions would also harm American interests.

Ukraine hailed the tougher sanctions, with Western-backed President Petro Poroshenko saying he welcomed the EU moves that involve the European Investment Bank and European Bank of Reconstruction and Development halting finance for projects in Russia.

Agencies


Casualty

At least 154 Dutch citizens killed in Ukraine air disaster
At least 154 Dutch citizens have been killed in the Malayssian passenger crash in the eastern part of Ukraine on Thursday, the airlines European head said.

One HK resident confirmed onboard crashed MH17
One Hong Kong resident was preliminarily confirmed aboard the crashed Malaysia Airlines MH17, said the Immigration Department of the Government of the Hong Kong Special Administrative Region on Friday.

Four Germans died in Malaysia Airlines plane crash in Ukraine: report
Four Germans died in a plane crash in eastern Ukraine on Thursday, German media Spiegel Online reported, citing an airport spokesman in Amsterdam.

Up to 10 Britons feared dead in Malaysian plan crashes: report
Up to ten British passengers were feared to have been killed in the Malaysian passenger plane crash in the eastern part of Ukrain, the Daily Mail cited government sources as saying.

Cause and Investigation

US says Malaysian airliner shot down by missile: media
The Malaysian passenger jet that crashed near the Ukraine-Russia border was shot down by missile, US media reported on Thursday.

Evidence from Malaysian jet crash must stay in Ukraine: US, Ukrainian presidents
Evidence from the crash of Malaysian airliner must stay in Ukraine before it is investigated, US President Barack Obama and Ukrainian President Petro Poroshenko said in their telephone conversation Thursday.

Airlines Reaction

Malaysia Airlines European flights to take alternative routes avoiding usual route
Malaysia Airlines said Friday in a statement that with immediate effect, all European flights operated by the company would be taking alternative routes avoiding the usual route.

US airlines agree not to fly near Ukraine-Russia border: FAA
US airlines have voluntarily agreed not to fly in the airspace near the Ukraine-Russia border, the US Federal Aviation Administration confirmed Thursday.

Polish Airlines says not to fly over eastern Ukraine after crash
The Polish Airlines (LOT) has said it will avoid flying over the eastern Ukraine after a Malaysian plane crash, killing 295 people on board, a statement of the airlines said on Thursday.

Market Response

Crude prices gain on rising geopolitical risks
Crude prices gained Thursday as a Malaysian passenger jet crashed in Ukraine. Escalating tensions in Ukraine ignited concerns about the global energy supplies.

US stocks hit hard following Malaysian plane crash
US stocks was hit hard Thursday, as a Malaysian passenger jet crash in Ukraine ignited market risk aversion.

Authority Reaction

Ukrainian authorities close air space after flight crash: Eurocontrol
Ukrainian authorities has closed all of the Eastern Ukrainian air space since the Malaysian flight crash, Eurocontrol, a European civil organisation working for the safety of air navigation, said in a statement on Thursday.

MH17's flight route declared safe by ICAO: Malaysian PM
Malaysian Prime Minister Najib Razak said in Kuala Lumpur Friday at a press conference that the MH17's flight route was declared safe by the International Civil Aviation Organization (ICAO), adding that the International Air Transportation Association had stated that the airspace the aircraft was traversing was not subject to restrictions.

New Zealand calls for full investigation of Malaysia Airlines crash
The New Zealand government on Friday expressed its condolences on the crash of Malaysia Airlines MH17 and called for an unhindered investigation into the crash.

Newspaper headline: 295 lives lost as Kiev, rebels trade accusations