"We very much regret that the UN Security Council last night did not adopt due to the veto of Russia the resolution on the downing of MH17," European Commission spokeswoman Maja Kocijancic told reporters.
"This resolution would have established a binding and credible mechanism for prosecuting those responsible for this terrible tragedy," Kocijancic said.
"Regardless of this setback, the work must continue so that those who are either directly or indirectly responsible for the downing of MH17 are indeed held accountable," said the spokeswoman for the Commission, the executive of the 28-nation EU.
Russia exercised its veto over the resolution which was drafted by Australia, Belgium, Malaysia, the Netherlands and Ukraine.
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Angola, China and Venezuela abstained.
The resolution was supported by Britain, France and the US who suspect pro-Russian separatist rebels of shooting down the Boeing 777 with a BUK surface-to-air missile supplied by Russia.
Moscow denies involvement and blames the Ukrainian military.