A 53-year-old man was held by police after he reportedly shot and killed his friend, who remains unidentified.
Police said the suspect was a US deportee.
HRABOVE, Ukraine—A Malaysian airliner was brought down over eastern Ukraine today, killing all 295 people aboard and sharply raising the stakes in a conflict between Kiev and pro-Moscow rebels in which Russia and the West back opposing sides.
Ukraine accused "terrorists"—militants fighting to unite eastern Ukraine with Russia—of shooting down the Malaysia Airlines Boeing 777 with a heavy, Soviet-era SA-11 ground-to-air missile as it flew from Amsterdam to Kuala Lumpur.
Leaders of the rebel Donetsk People's Republic denied any involvement, although around the same time their military commander said his forces had downed a much smaller Ukrainian transport plane. It would be their third such kill this week.
The scale of the disaster affecting scores of foreigners could prove a turning point for international pressure to resolve a crisis that has claimed hundreds of lives in Ukraine since pro-Western protests toppled the Moscow-backed president in Kiev in February and Russia annexed Crimea a month later.
Reuters journalists saw burning and charred wreckage bearing the red and blue Malaysia insignia and dozens of bodies strewn in fields near the village of Hrabove, 40 km (25 miles) from the Russian border near the rebel-held regional capital of Donetsk.
Despite the shooting down of several Ukrainian military aircraft in the area in recent months, including two this week, and renewed accusations from Kiev that Russian forces were taking a direct part, international air lanes had remained open.
The loss of MH-17 is the second disaster for Malaysia Airlines this year, following the mysterious loss of flight MH-370. It disappeared in March with 239 passengers and crew on board on its way from Kuala Lumpur to Beijing.
U.S. President Barack Obama said he was trying to establish whether Americans were aboard. A Ukrainian official said there were 23. France said at least four of its citizens were aboard.
As word came in of what Ukraine's Western-backed president called a "terrorist attack", Obama was on the phone with Russian President Vladimir Putin, discussing a new round of economic sanctions that Washington and its EU partners imposed on Moscow on Wednesday to try to force Putin to do more to curb the revolt against the Western-backed government in Kiev.
They noted the early reports during their telephone call, the White House said, adding that Obama warned of further sanctions if Moscow did not change course in Ukraine.
Malaysia Airlines said air traffic controllers lost contact with flight MH-17 at 1415 GMT as it flew over eastern Ukraine towards the Russian border, bound for Asia with 280 passengers and 15 crew aboard. Flight tracking data indicated it was at its cruising altitude of 33,000 feet when it disappeared.
An emergency worker said at least 100 bodies had been found so far and that debris was spread over 15 km (9 miles). People were scouring the area for the black box flight recorders and separatists were later quoted as saying they had found one.
A rebel leader said Ukrainian forces shot the airliner down and that rebel forces did not have weaponry capable of hitting a plane flying 10 km (six miles) up. Ukrainian officials said their military was not involved in the incident. There was no comment on that from the Ukrainian military.
Moscow has denied its forces are involved in any way.—Reuters