Russian assets sensitive to geopolitical tensions Rouble hits near 2-week low vs dollar before firming Russian bonds and stocks recover ground Kremlin says authorities working on financial stability MOSCOW, Jan 19 (Reuters) - The rouble strengthened on Wednesday, pulling away from a near two-week low versus the dollar in volatile trade, while Russian stocks made a slight recovery after several sessions of sharp losses, with investors focused on geopolitical concerns. Volatility has plagued the Russian market in the last few trading sessions. The Kremlin on Wednesday said authorities were working to maintain economic stability. Russia, locked in a stand-off with the West, says it is concerned about NATO"s expansion, while the West says a Russian troop buildup at Ukraine"s border could be preparation for an invasion. Moscow denies it plans to invade and Washington is keen to pursue diplomacy. read more By 1548 GMT, the rouble was 0.5% stronger against the dollar at 76.51 . Earlier, it had slipped to 77.17, its weakest mark since Jan. 6 and hit a session high of 75.82. The currency gained 0.4% to trade at 86.75 versus the euro . Global factors such as higher inflation, the COVID-19 pandemic and poor growth prospects have combined with increasingly tense geopolitics to dampen the attractiveness of Russian assets, said BCS Global Markets. "That said, markets seem to have already begun to price in a negative scenario vis-à-vis Russia and the West on Ukraine – perhaps a little early: as the losses extend, so too does the room for upside," BCS said. Volatility was set to remain in the short term, said Aton investment management firm, with geopolitical tensions continuing to weigh. Russia"s 10-year OFZ yields eased to 9.27% from their highest since early 2016 of 9.52% hit this week and Ukraine"s government bonds also rallied. Yields move inversely to prices. "In EM, to say that Russian assets and the currency have fallen out of favour would be an understatement, but price action could get a lot worse if the next diplomatic effort on Friday between Moscow and Washington comes to nothing," Societe Generale said in a note. Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State Antony Blinken are to hold talks in Geneva on Friday to discuss security guarantees Moscow is seeking from the West. Brent crude oil , a global benchmark for Russia"s main export, hit a more than seven-year high of $89.05, helping Russian stock indexes recover some ground. The rouble-based MOEX Russian index (.IMOEX) was 3.2% higher at 3,436.8 points, recovering some of the ground lost on Tuesday. It had slid to its weakest point since late December 2020 of 3,256.60 points in early trade. The dollar-denominated RTS index (.IRTS) was up 3.5% to 1,414.7 points, also recovering from a December 2020 low.