This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine

MOSCOW, June 23 Reuters The Russian rouble weakened against the dollar on Thursday but hovered not far from sevenyear highs, supported by capital controls and the prospect of a favourable upcoming tax payment period as the spectre of a possible default loomed large.

President Vladimir Putin signed a decree on Wednesday to establish temporary procedures aimed at fulfilling Russia39;s foreign debt obligations as the country teeters on the brink of default.

At 0731 GMT, the rouble was 0.4 weaker against the dollar at 53.36 , but remained near its strongest mark since June 2015 of 52.80, hit on Wednesday.

It had gained 0.7 to trade at 56.01 versus the euro , close to a more than sevenyear high of 55.01 hit in the previous session.

The rouble, which has become the world39;s bestperforming currency this year, is driven by Russia39;s high proceeds from commodity exports, a sharp drop in imports and a ban on households withdrawing foreign currency savings.

Top policymakers used Russia39;s annual economic forum in St Petersburg last week to highlight the rouble39;s recent strength. There are concerns this could weigh on the economy as it tips into recession amid harsh sanctions over what Moscow calls a special military operation in Ukraine.

The rouble is also buttressed by companies that need to pay taxes early next week. For exportfocused firms that means…