A Malaysia Airlines Boeing 777 passenger jet flying from Amsterdam to Kuala Lumpur was shot down in Ukraine, reports news agency Interfax.
The Boeing 777 was reportedly flying over Ukraine at 33,000 feet, too high for the now-ubiquitous shoulder-fired portable missiles.
Reuters reports that Russian airline Aeroflot will no longer fly over Ukraine territory.
The attack follows repeated accusations by Ukraine that Russian forces are supplying arms to separatist rebels in the east.
President Obama announced a new round of sanctions as the EU met to discuss increasing its own prohibitions on the Kremlin.
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A rocket attack Tuesday in the Donetsk region, which killed 11 people, could have come from Russia, according to a military analyst.
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Ukraine's defense minister said the AN-26 transport plane was flying at an altitude where it couldn't be harmed by separatists.
The incident is the first reported casualty in Russia during the conflict.
At least two Ukrainian soldiers were killed and about 20 injured on Saturday by rebel missile attacks.
Train tickets in Donetsk have sold out, while most shops in the region have shut down.
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If the casualty figures are confirmed, the deaths are the largest since a cease-fire ended on June 30.
The presence of Snowden in Russia has strained relations between Moscow and Washington, also at odds over the crises in Syria and Ukraine.
Government forces have recently gained the upper hand in the three-month conflict against separatists in the Russian-speaking eastern regions.
One U.S. film will compete in the Odessa International Film Festival, which features movies from many nations, including Ukraine and Russia.
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.
EU’s sanctions list so far includes nearly 61 people and two energy companies based in the Crimean peninsula.
As U.S. troop numbers dwindle in Europe, NATO is being asked to spend more on defense or face the consequences.
Will eastern separatists lay down their arms in the face of a Ukrainian blockade or will they battle for their self-proclaimed capital?