MOSCOW, Feb. 26 (Reuters) - The Russian rouble declined on Wednesday as concerns about the risk of default in neighbouring Ukraine weighed on investor sentiment.

At 0830 GMT the rouble was down 0.4 percent to 35.85 against the dollar RUBUTSTN=MCX and 0.4 percent to 49.25 against the euro EURRUBTN=MCX , leaving it 0.4 percent weaker at 41.88 against the dollar-euro basket. RUS=MCX

Wednesday's decline in the rouble follows a 0.6 percent fall against the currency basket on Tuesday, showing that negative sentiment is outweighing the effect of monthly tax payments by Russian exporters this week that typically provide support.

Analysts and traders said the rouble was hurt by concerns over Ukraine's financial situation, reinforced by comments by Russia's deputy finance minister that Ukraine may default.

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"The rouble sees higher pressure relative to the rest of emerging market FX: These Ukraine concerns weigh on the rouble in the first place," said Maxim Korovin, fixed income analyst at VTB Capital.

He said it was likely international investors were betting against the rouble as a way to reduce exposure to the region and so hedge their Ukraine risk. "If you short the rouble and the rouble is weakening that will offset your loss," he said.

He also saw evidence that forex purchases by Russian households have been contributing to the rouble's fall over recent days. "People are quite sensitive to the volatility in the FX market. It's a vicious circle: FX weakening fuels expectations of more FX weakening," Korovin said.

The rouble's decline coincides with a slide in the Ukrainian hryvnia, which hit a record low against the dollar on Tuesday, falling more than 6 percent during the day. ID:nL6N0LU3PS

Sentiment towards all emerging market assets is also being hit by a recent slide in the Chinese Yuan, which is raising fears about tighter credit conditions and slower economic growth in China, analysts said.

Others emphasise underlying negative factors that have been weighing on the rouble since the beginning of the year.

"The process of curtailing the stimulus programme of the Federal Reserve and weak Russian economic indicators are in no way helping to increase the investment attractiveness of the national economy," Globex trader Andrei Bogun said in a note.

Russian stock indexes moved in different directions on Wednesday, with the weakening rouble weighing particularly on the dollar-based RTS index .IRTS , while the rouble-based MICEX index edged upwards.

At 0830 GMT the MICEX index was up 0.1 percent to 1481 points, while the RTS had fallen 0.4 percent to 1301 points.

For rouble poll data see FXRUB FXEURRUB FXRUS

For Russian equities guide see RU/EQUITY

For Russian treasury bonds see 0#RUTSY=MM

Russia in graphics: http://link.reuters.com/dun63s

(Reporting by Jason Bush Editing by Jeremy Gaunt.)

((jason.bush@thomsonreuters.com)(+7 495 775 1242)(Reuters Messaging: jason.bush.reuters.com@reuters.net))

Keywords: RUSSIA MARKETS/