Families of Australian victims of Malaysia Airlines Flight MH17 downed by a missile over the Ukraine in July 2014 are seeking compensation of $10 million per passenger in what could result in one of the largest aviation disaster payouts in history.

The claim served by Sydney legal firm LHD Lawyers on May 9 to the European Court of Human Rights lays the blame squarely at the door of the Russians.

Proposed respondents to the claim are the Russian Federation and President Vladimir Putin. It argues that Russia recognises an attack on a passenger plane is an egregious act having offered "a $50 million reward in connection with the terrorist downing of an Egyptian Airline that killed a large number of Russian citizens".

There are 33 next of kin named in the application, eight from Australia, one from New Zealand and the remainder from Malaysia. There were 298 occupants on the plane which, lawyers say, could potentially take the compensation bill to almost $3 billion.