Saints were seconds away from the third qualifying round after Dean Ebbe made it 2-1 in extra time only for Stefan Radosavljevic to rifle in from distance.
Ebbe and Danny Redmond missed spot-kicks – the former whose penalty could have put TNS through – as B36 progress to face either CSKA Sofia or BATE Borisov next week.
Ruscoe, who had substitute Leo Smith equalise with 10 minutes left of normal time, said: “I said to them I was gutted and felt for them. You want to pick the lads up but haven’t got the words to give them because it probably falls on deaf ears.
“They’re gutted because we certainly haven’t been outplayed. Fortune has favoured them.
“In penalties you get tiredness, cramp, mixed emotions of how you’ve played in the game. It’s a psychological battle. It’s hard to take, obviously.”
TNS returned to Oswestry from the Faroe Islands yesterday and host Cardiff Met in the Cymru Premier on Sunday.