George Osborne said the Government will consider imposing further sanctions on Russia if it does not cooperate with investigators following the downing of flight MH17.
The Chancellor told Good Morning Britain: "Russia of course controls access to this part of Ukraine - I think that is an open secret."
"Why does it matter? It matters for our security and our economy," he said. "We've got to live in a world where international borders are respected, where commercial airlines aren't at risk of being shot down."
"When you do sanctions of course there's always a potential for that to have an economic impact on you, but you've got to consider the much bigger economic impact if you don't act."
Thousands of online users have taken to social media to call for the victims of the Malaysian airliner crash to be returned to loved ones.
United States intelligence officials admitted that they do not know who fired the surface-to-air missile that downed flight MH17.
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