KIEV, March 20 - The Russian ruble will be used in settlements between Naftogaz Ukrayiny and Gazprom if the situation on the forex market is good for Ukraine, allowing it to gain an exchange-rate premium, Kiev has said.

"Gas settlements will be run based on economic pragmatism, with due account of fluctuations in the exchange rates and in demand on the Ukrainian forex market. Since the ruble is a more volatile currency, Ukraine will gain an additional exchange-rate premium when the ruble goes down against the dollar," says National Bank of Ukraine Governor Serhiy Arbuzov.