Foreign Minister Bert Koenders said in a statement that the decision was made by the countries jointly investigating the crash Australia, Belgium, Malaysia, Ukraine and the Netherlands.
The statement says the countries will continue to cooperate on the prosecution and that it will cover all 298 victims, who came from 17 countries. Most were Dutch citizens.
An international criminal probe concluded last year that the missile that destroyed the passenger jet was fired from rebel-controlled territory by a mobile launcher trucked in from Russia. Russia has denied any involvement, and denounced the conclusions as politically biased.
Russia did not immediately respond to today's announcement. The Russian government could refuse to extradite any of its citizens for eventual questioning or prosecution.
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Malaysia had proposed setting up an international court to try those responsible for the plane's destruction, but Russia vetoed a UN Security Council resolution in favor of a tribunal.
The Boeing 777, flying from Amsterdam to Kuala Lumpur, Malaysia, was blown out of the sky on July 17, 2014, in eastern Ukraine amid fierce fighting between Russia-backed separatists and Ukrainian troops.
The Russian military has said data from radar in southern Russia showed that the missile that downed Flight 17 did not originate in rebel-controlled territory.