The "terrible" crash of flight has show unrest in Ukraine is "getting out of control", a former British diplomat to eastern Europe and Moscow told Good Morning Britain.
Charles Crawford, a former ambassador to Sarajevo, said it would be "difficult" to offer Russia a deal which was "not completely morally unacceptable as well as politically unacceptable."
More top news
The chancellor now faces the prospect of forming a minority government or calling for a snap election.
The 73-year-old said a return is unlikely "given the politicised atmosphere that seems to have afflicted our set."
Chancellor Philip Hammond said the UK will make a financial proposal to the EU in the next three-and-a-half weeks.