Russian rouble advances despite oil pressures

(This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine.) (Recasts, updates prices)

MOSCOW, Dec 8 (Reuters) - The Russian rouble gained ground on Thursday despite uncertainty over how an oil price cap will affect Russia's main source of income.

At 0930 GMT the Russian rouble was up 0.7% against the dollar at 62.28 RUBUTSTN=MCX , advancing from seven-week lows hit in recent sessions. Against the euro, the rouble was up 1.2% at 65.23 EURRUBTN=MCX and had added 0.8% against the Chinese yuan CNYRUBTOM=MCX to trade at 8.93.

The currency strengthened despite analysts saying Russia's economy and government finances face pressure from the European Union's embargo of Russian oil exports and a $60-a-barrel price cap imposed by the G7, the European Union and Australia.

Russia's government has placed record amounts of debt in recent weeks as it tries to secure financing to cover expected budget deficits in the coming years.

Russia is aiming to borrow 3.5 trillion roubles ($55.64 billion) in 2023, as it prepares to face headwinds from falling oil prices and weaker demand for Russia's hydrocarbons.

Deputy Finance Minister Timur Maksimov said on Thursday Russia would offer more government OFZ bonds with floating rates, due to "attractive yields".

Russia's Urals oil blend was trading with an almost 40% discount to benchmark Brent crude oil LCOc1 , which was up 1% at $77.98 a barrel, analysts at Alor Broker wrote in a research note on Thursday. Before Moscow sent tens of thousands of troops into Ukraine in February, it typically had a single-digit discount.

"We should expect a sharp drop-off in the financial performance of the oil industry in the last quarter of the year, with the drop in oil revenues also affecting many other sectors," Alor Broker analysts said.

Russian stock indexes were mixed on the currency effect. The dollar-denominated RTS index .IRTS gained 0.4% to 1,102.8 points while the rouble-based MOEX Russian index .IMOEX was 0.5% lower at 2,183.1 points.

Shares in Sberbank SBER.MM underperformed, and were down 1% after Russia's largest bank said its net profit fell 84.8% year-on-year in the first 11 months of the year.

For Russian equities guide see RU/EQUITY

For Russian treasury bonds see 0#RUTSY=MM
Reporting by Jake Cordell and Alexander Marrow; Editing by Toby Chopra and Barbara Lewis

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