Russian Prime Minister Dmitry Medvedev has given support to VTB chief Andrei Kostin's proposal to boost the ruble's role in payments between Russia and Ukraine.

"If 40% of payments are in rubles, there is cause for considering this," Medvedev said at the international investment forum "Yalta Business Meetings".

Medvedev added that the role of the Chinese yuan has been increasing in the world and made a proposal to Ukraine to choose the currency closest to it, the ruble or the yuan.

Kostin said that around 40% of payments between Russia and Ukraine are made in rubles and asked the Ukrainian government to consider raising the ruble's classification.

He added that the National Bank of Ukraine does not classify the ruble as a first tier currency. "This significantly reduces the ruble's possibilities for several important operations, including reducing our risks. I would simply ask, if possible, that the government [of Ukraine] again consider this issue. We understand the arguments against this but there is possibly an opportunity to move towards this goal," Kostin said

Ukrainian Prime Minister Mykola Azarov, in response to this, said that no discussion was made a year ago about payments in rubles. He said that Russia and Ukraine would continue to move towards raising the ruble's role in payments between the two countries.

"A year, maybe a short-term, but I think that if we want to make good time it is necessary to move faster," Medvedev said.

Medvedev added that Ukraine should choose the currency with which it will make payments.

"If they don't want to pay in rubles, payment in yuan might become necessary. This is the dilemma now for the entire world economy. You will have to decide yourselves what's closer," Medvedev said.