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Rouble slides over 3% to 63 vs dollar, weakest since July

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Russian stocks, led by Gazprom, slump to lowest since Feb. 24

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Heightened geopolitical risks weigh on Russian market

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

MOSCOW, Oct 10 (Reuters) - The rouble weakened on Monday, sliding past 63 against the dollar for the first time in over three months, while Russian stocks dived lower on intensifying geopolitical risks and a sharp drop in Gazprom shares as it started trading ex-dividend.

Geopolitics and sanctions risks have buffeted Russian markets in recent weeks since President Vladimir Putin moved to annex four regions of Ukraine after Moscow held what it called referendums - votes that were denounced by Kyiv and Western governments as illegal and coercive.

Explosions rocked Kyiv on Monday, two days after a powerful blast damaged the bridge linking Russia and the Crimean peninsula that Moscow annexed in 2014.

By 1306 GMT, the rouble was 3.1% weaker against the dollar at 62.88, earlier passing 63 for the first time since July 7.

It had lost 2.8% to trade at 61.55 versus the euro , and had shed 1.5% against the yuan to 8.63 , earlier clipping a near three-week low against both currencies.

"(The rouble's) weakening may have been facilitated by the conversion of bond payments into foreign currency and geopolitical news," said Dmitry Polevoy, head of investment at Locko Invest.

The rouble has also weakened steadily as concerns proved unfounded that new sanctions against Russia would seek to paralyse dollar and euro trading on the Moscow Exchange.

"There is no information about any fundamental changes in the balance of payments, which could lead to strong and steady rouble weakening," said Alfa Capital analyst Vladimir Bragin. "Perhaps, some market participants are restoring positions in foreign currency that were closed at the end of September."

GAZPROM SLUMP

Russian stock markets opened at their lowest in months, dragged lower by a more than 20% slump in Gazprom shares, before they pared some intraday losses.

The rouble-based MOEX Russian index was 1.9% lower at 1,907.3 points, earlier hitting its weakest since Feb. 24, the day Moscow sent troops into Ukraine, of 1,775.04 points.

The dollar-denominated RTS index was down 4.8% to 956.8 points, earlier clipping its lowest point since April 19.

Veles Capital analysts said geopolitics and the dividend cut-offs by Gazprom and oil company Tatneft would see downward pressure on Russian stocks remain.

Moscow Exchange staged a discrete auction of Gazprom shares shortly after market opening. Later in the day, the energy giant's shares, heavily weighted in the overall index, were trading around 16.1% lower.

Brent crude oil, a global benchmark for Russia's main export, was down 0.7% at $97.3 a barrel, having earlier touched a more than one-month high. (Reporting by Alexander Marrow; Editing by Hugh Lawson and Bernadette Baum)