Russian Prime Minister Dmitry Medvedev (L) inspects a Boeing 737-800 NG, owned by Dobrolet airline Reuters

Russia could impose a ban on European airlines using trans-Siberian routes, in response to the European Union's latest sanctions over Ukraine, according to the Vedomosti newspaper.

The foreign and transport ministries are discussing placing restrictions on flights over Russian territory, the newspaper reported, which could seriously increase costs for European airliners flying to Asia.

The move could be retaliation after Russia's low cost airline Dobrolet was forced to suspend all flights, after the EU imposed tough sanctions on the carrier.

The state-controlled airliner was targeted over operating flights to the Black Sea peninsula of Crimea, which Russia annexed from Ukraine in March in a widely disputed referendum.

A ban on European airlines could affect British Airways, Lufthansa and Air France, while Russia's Aeroflot could lose out on around $300m each year in the form of overflight fees.

The penalties on European carriers would place them at a disadvantage compared to their Asian competitors, as avoiding Russia could hike fuel bills and extend the length of flights.

The EU and the US imposed tough sanctions on Russia's banking, finance and energy sectors over its behaviour in Ukraine.

Western leaders have accused pro-Russian separatists of shooting down a Malaysian airliner over eastern Ukraine with a Moscow-supplied missile.

For its part, Russia has accused the Ukrainian military of shooting down the plane.

MH17 was downed in July, killing all 298 people on board.