Prime Minister Tony Abbott says Australia is in talks with Ukraine about the possibility of exporting Australian uranium and coal to the war-torn European country.

Ukraine's president Petro Poroshenko is in Australia for a two-day state visit.

Speaking at a joint press conference in Melbourne this morning, Mr Poroshenko said the two countries had been brought together by the Malaysia Airlines flight MH17 tragedy.

He said both countries were now keen to discuss ways of strengthening the bilateral relationship.

"I want to stress that my visit, the first visit of the Ukrainian president to Australia, is a demonstration of the strategic character of our partnership and Ukraine recognise and thank Australia," he said.

"We discuss today the possibility of the cooperation in the sphere of nuclear energy; there is a possibility to buy Australian uranium for our nuclear power station.

"We discuss about the possibility for supply of Australian coal for Ukraine energy system."

According to the Department of Foreign Affairs website, Australia's trade relationship with Ukraine is "modest".

"Merchandise exports from Australia were valued at $35 million in 2013 and consisted mainly of manganese ores and concentrates," the website stated.

"In the same period, Australia imported $46 million worth of products from Ukraine, mainly fertilisers, and electrical circuits equipment."

Mr Abbott said if an export deal could be secured, it would be good for both jobs and prosperity in the two countries.

"Australia is an energy super power and energy security is very important to Ukraine, particularly given its current vulnerability to supply shocks," he said.

Russia cut off gas supplies to Ukraine in June over a pricing dispute, forcing Ukraine to take steps to conserve its insufficient reserves for the current winter.

Ongoing embassy in Kiev to expand diplomatic relations

Australia had established an interim embassy in Ukraine following the MH17 disaster and today Mr Abbott indicated the Government would set up a permanent diplomatic post in Kiev early next year.

"Coming from this tragedy, I believe will be a strong and lasting friendship between the Australian people and the Ukrainian people," Mr Abbott said.

"Already there are some tangible manifestations of our friendship.

"We have an interim embassy in Kiev, we expect to open our ongoing embassy in February."

Mr Poroshenko welcomed the move and said he had invited Mr Abbott to visit Kiev next year.

"I told him that he is one of the most popular foreign politicians in Ukraine," he said.

Mr Abbott responded, telling journalists it was nice to be popular, "even if just in Kiev".

The two leaders had attended a prayer vigil in Melbourne for the 298 victims of the MH17 tragedy.