Russia also claimed that the jetliner was being guided by Ukrainian air-traffic controllers.
The Boeing 777 airplane was carrying 298 people on board when it crashed into a village about 25 miles from the Russian border.
The two world leaders had previously arranged to discuss the ongoing Ukraine crisis.
As the world searches for an explanation for the crash of MH17, coincidences lead to conspiracy theories.
The new U.S. sanctions effectively shut off medium- and longer-term dollar funding for companies close to Vladimir Putin.
President Obama announced a new round of sanctions as the EU met to discuss increasing its own prohibitions on the Kremlin.
The incident is the first reported casualty in Russia during the conflict.
On the first day of his Latin America tour, the Russian president canceled 90 percent of Cuba's debt to his country.
If the casualty figures are confirmed, the deaths are the largest since a cease-fire ended on June 30.
Government forces have recently gained the upper hand in the three-month conflict against separatists in the Russian-speaking eastern regions.
Ukrainian activists say Europe abandoned the Maidan movement in favor of keeping ties with Russia, but they still want into the EU.
Heavy smoke and sporadic gunfire was seen in the area as calls grow for a cease-fire.
The banknote depicts Greek god Apollo atop a Russian landmark. Apollo's genitals are visible, if you look closely
There have been no indications that Russia will expel Edward Snowden when his temporary asylum expires on July 31.
In a slow economy, the Russian Finance Ministry plans to slash dividend revenue from Gazprom and Rosneftegaz.
Demonstrators rally in support of separatists in Donetsk.
A new measure requiring websites to store user data on Russian servers has again raised fears of Internet censorship in the country.
Legislation signed off by President Putin in May comes into effect today.
Petro Poroshenko made a fiery speech on Monday, criticizing Russia and promising to proactively handle eastern separatists.
Rebels shot down a Ukrainian helicopter carrying technicians who had been installing equipment to monitor violations of a peace plan in Ukraine's rebellious east on Tuesday, killing all nine people on board, a military spokesman said.
Kiev said pro-Russian rebels in east Ukraine had shot down a military helicopter, most likely killing all nine on board. It was the most serious breach of a temporary ceasefire agreed in talks between government and rebels less than 24 hours earlier.
Pro-Russian separatists reportedly killed nine military specialists in the second cease-fire violation in less than a week.