In a statement, Dutch authorities said the council of the International Civil Aviation Organisation (ICAO) would in the coming weeks consider what form of reparation was in order.
The Australian government urged the council to move swiftly to determine remedies.
"We call upon Russia to finally face up to its responsibility for this horrific act of violence and make reparations for its egregious conduct, as required under international law," Australian Foreign Minister Penny Wong said.
"Our thoughts remain with those who lost their lives as a result of Russia's actions, their families and loved ones," she said.
"While we cannot take away the grief of those left behind, we will continue to stand with them in that grief and pursue justice for this horrific act."
Malaysian Airlines Flight MH17 departed from Amsterdam for Kuala Lumpur on July 17, 2014 and was shot down over eastern Ukraine as fighting raged between pro-Russian separatists and Ukrainian forces.
In November 2022, Dutch judges convicted two Russian men and a Ukrainian man in absentia of murder for their role in the attack.Â
The Russian government called the ruling "scandalous" and said it would not extradite its citizens.
The ICAO, which is based in Montreal, did not immediately respond to a request for comment.
On Tuesday, the Kremlin rejected the ICAO's conclusion as biased.
"Our position is well known. You know that Russia was not a country that took part in the investigation of this incident, so we do not accept any biased conclusions," spokesman Dmitry Peskov said.
The case was launched in 2022 by Australia and the Netherlands.
"The decision is an important step towards establishing the truth and achieving justice and accountability for all victims of Flight MH17, and their families and loved ones," Dutch Foreign Minister Caspar Veldkamp said in a statement.
"This decision also sends a clear message to the international community: states cannot violate international law with impunity."
The Netherlands and Australia want the ICAO council to order Russia to enter into negotiations over reparations, he added.
ICAO lacks regulatory power but holds moral suasion and sets global aviation standards overwhelmingly adopted by its 193-member states.
