Tougher EU sanctions against Russia will be needed if Moscow does not change its "approach" to the downing of the Malaysia Airlines plane over Ukraine, David Cameron has indicated.
The PM said the EU should stand up for its principles, amid claims Russia-backed rebels were involved.
Writing in the Sunday Times, he said it might be "time to make our power, influence and resources count".
The Russian ambassador to the UK warned sanctions would have a negative effect.
Alexander Yakovenko said he regretted recent decisions by the US and EU to impose sanctions, claiming it could only "encourage the Ukrainian authorities to continue violence".
'Festering crisis'Ten Britons were among the 298 people killed when the Boeing 777 was downed on Thursday over eastern Ukraine. Most of the crash victims - 193 - were Dutch.
There have been concerns international observers have not been allowed proper access to the crash site, which is being controlled by pro-Russia militiamen.
Mr Cameron, Dutch prime minister Mark Rutte and Australian prime minister Tony Abbott have agreed to increase pressure at the UN Security Council for investigators to access the site.
End Quote David CameronWe must turn this moment of outrage into a moment of action"
A No 10 spokeswoman said: "All three leaders are clear that president Putin needs to actively engage with the international community."
The new Defence Secretary Michael Fallon warned Mr Putin to "get out of east Ukraine", accusing Russia of "sponsored terrorism".
He told the Mail on Sunday: 'We have to make it very clear if there is any more interference like this - and it turns out he was behind it - there will be repercussions. He has to be clear the West will act."
Mr Cameron said the UK was not seeking confrontation with President Vladimir Putin, or suggesting military action.
He said: "Russia can use this moment to find a path out of this festering, dangerous crisis. I hope it will do so. But if that does not happen then we must respond robustly."
Mr Cameron wrote: "We must establish the full facts of what happened. But the growing weight of evidence points to a clear conclusion: That MH17 was blown out of the sky by a surface-to-air missile fired from a rebel-held area.
"If it is the case, then we must be clear what it means: This is a direct result of Russia destabilising a sovereign state, violating its territorial integrity, backing thuggish militias and training and arming them. We must turn this moment of outrage into a moment of action."
He said many European countries seemed reluctant to "face up" to Russia.
Mr Cameron said "if President Putin does not change his approach on Ukraine, then Europe and the West must fundamentally change our approach to Russia".
Mr Cameron said Russia must make available to investigators any information it has about the crash as well as halting supplies and training for the rebels.
He added: "We must establish proper long-term relationships between Ukraine and the European Union; between Ukraine and Russia; and, above all, between Russia and the European Union, Nato and the wider West."
Economic sanctions?The US and EU brought in sanctions against Russia over its involvement in the Ukraine crisis and these were increased shortly before the plane was downed.
BBC News political correspondent Gary O'Donoghue said Mr Cameron's comments were likely to lead to more pressure for tougher sanctions including travel bans on individuals and the freezing of assets.
But a source did not rule out the idea of economic sanctions, our correspondent said.
Six UK air accident investigators have been sent to the region and experts from the Metropolitan Police are due to arrive in Ukraine on Sunday to assist with identifying and recovering the bodies of those killed.
All 10 British victims believed to have been on board have now been identified. The final victim is understood to be former RAF search and rescue co-ordinator Stephen Anderson, 44.
One of the British victims - John Allen, 44 - died alongside his wife Sandra and sons Christopher, Julian and Ian - who are listed in the passenger list as having Dutch nationality - his law firm said.
Fifty-nine-year-old banker Andrew Hoare also died, along with his Dutch wife and their two children, Jasper, 15, and Friso, 12.
The family, who lived in Luxembourg but made frequent visits to England, had been on their way to Malaysia for a holiday.
His brother Hugo said Somerset-born Mr Hoare was a "devoted family man".
"He's one of the nicest guys you could ever meet. His smile could light up a room," he said.
The families are believed to have died along with Britons Robert Ayley, John Alder, Liam Sweeney, Glenn Thomas, Richard Mayne, Ben Pocock, and Cameron Dalziel, who was born in Zimbabwe but travelling on a British passport.
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