The aircraft, which was flying from Amsterdam to Kuala Lumpur, was travelling at an altitude of 10,000 metres when it was shot down on Thursday, Russia's Interfax reported.
An adviser to the Ukrainian interior ministry told the news agency the Boeing 777 was brought down by a Buk ground-to-air missile.
Flight MH17 leaving Schiphol Airport, Amsterdam, on Thursday afternoon
"Armed Forces of Ukraine did not take action against any airborne targets," Poroshenko said.
Malaysian Airlines confirmed it had lost contact with flight MH17 from Amsterdam, saying the aircraft was carrying 280 passengers and 15 crew.
Non are believed to have survived the crash.
The Associated Press news agency reported that its journalist had counted at least 22 bodies at the site of the plane wreckage.
It added that the field around the burning wreck was strewn with body parts and belongings of the passengers.
"Malaysia Airlines confirms it received notification from Ukrainian ATC that it had lost contact with flight MH17 at 1415 (GMT) at 30km from Tamak waypoint, approximately 50km from the Russia-Ukraine border.
"Flight MH17 operated on a Boeing 777 departed Amsterdam at 12.15pm (Amsterdam local time) and was estimated to arrive at Kuala Lumpur International Airport at 6.10 am (Malaysia local time) the next day," the statement said.
Malaysia's Prime Minister reacted on Twitter saying: "I am shocked by reports that an MH plane crashed. We are launching an immediate investigation."
A flight tracking website showed that one flight path was interrupted in Ukraine. The plane appeared to have come down in a region of military action where Ukrainian government forces are battling pro-Russian separatists.
A separate unnamed source in the Ukrainian security apparatus, quoted by Interfax, said the plane disappeared from radar at a height of 10,000 metres after which it came down near the town of Shakhtyorsk.
Al Jazeera's Rory Challands, reporting from Moscow, said the plane fell in an area controlled by pro-Russian separatists.
"The investigation would be very difficult given that it's controlled by the rebels," he said. "Ukrainian officials are saying that many children were dead. Some are saying that all died. Reuters is reporting that body parts were found at the scene. It seems that it was a very gruesome scene."
In April, the US Federal Aviation Administration warned American airlines to avoid the airspace over the region because it poses the "potential for conflicting air traffic control instructions from Ukrainian and Russian authorities and ... the misidentification of civil aircraft."
Airplane manufacturer Boeing released a statement expressing sympathy to those affected by the crash.
"Our thoughts and prayers are with those on board the Malaysia Airlines airplane lost over Ukrainian airspace, as well as their families and loved ones. Boeing stands ready to provide whatever assistance is requested by authorities," the statement read.
Prior to Thursday's Malaysian Airlines crash, a Ukrainian SU-25 attack plane was taken down by an air-to-air missile according Andriy Lysenko, a spokesman for Ukraine's national defence and Security Council. The pilot safely ejected.
Source: Al Jazeera
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