As a result of the soured relations between Turkey and Russia, Turkey has refused to apologise to Russia over the downing of a warplane on the Syrian border, Turkish President Recep Tayyip Erdogan said on Thursday.

"Those who violated our airspace should apologize to us," he said in an interview, Xinhua reported.

Earlier on Thursday, Russian President Vladimir Putin said Turkey has not apologized for the downing of a Russian warplane and had not offered to make up for the damages.

Ties between Ankara and Moscow soured after Turkish F-16 jets on Tuesday shot down a Russian Su-24 on a bombing mission near the Syrian border.

Turkey claimed that the Russian aircraft violated its national airspace, therefore the army implemented rules of engagement.

Turkey's downing of a Russian Su-24 warplane has dealt a "devastating" blow to bilateral ties, the Kremlin said on Thursday.

"It will be very difficult to mend bilateral relations after such quite devastating damage. It is too serious an incident that serious consequences are unavoidable... and we are still waiting for realistic explanations from the Turkish side," Kremlin spokesman Dmitry Peskov said.

Earlier, on Wednesday, Russia had accused Turkey of being involved in illegal oil trade with Islamic State militant group.

Turkish President Recep Tayyip Erdogan on Thursday refuted the accusations by Russian authorities.

"The ones who claim we purchase oil from IS are obligated to prove it," Erdogan said, adding that 79 million litres of smuggled oil have been seized by Turkey in 2014, Xinhua reported.

"Daesh sells the oil they drill to (Syrian President Bashar) al-Assad. Talk these over with the al-Assad you support," Erdogan said, in response to Russian Prime Minister Dimitry Medvedev's accusations.

Turkish Prime Minister Ahmet Davutoglu said on Wednesday that Turkey does not aim to escalate tension with Russia.

"Russia is our friend, our neighbour," he told lawmakers. "Our bilateral communication channels are still open."

"It was not an incident that Turkey desired," Davutoglu added.