Mr Abbott has imposed trade bans on Russia and expressed his anger over Russia's support for separatists who shot down the Malaysia Airlines flight, resulting in the deaths of 298 people including 38 Australians.
But after consulting with other G20 members, Mr Abbott says Mr Putin won't be banned from the economic leaders' summit next month.
Labor leader Bill Shorten says he wouldn't give Mr Putin the time of day, but Mr Abbott says it's better to engage his Russian counterpart.
