Fierce fighting in Chechen town

Fighting has forced thousands of people out of the region to refugee camps

MOSCOW, Russia -- A Russian army and police unit has been attacked by Chechen separatists, prompting fierce fighting in the Chechen town of Argun.

Interfax news agency said at least two Russian soldiers were killed in the attack after rebels opened fire from buildings on either side of a bridge as the Russian patrol crossed into the town east of the capital, Grozny.

"At least two servicemen were killed and another four were wounded," Interfax quoted a local official as saying.

A gun battle broke out as Russian forces backed by attack helicopters attempted to dislodge the rebels from their positions.

Argun has been sealed off by Russian troops since before the New Year as part of attempts seize rebels and their weapons and explosives.

The Russian military claims more than 100 rebels have been killed in Chechen areas east and southeast of Grozny. The rebels claim 40 Russian soldiers have died in fighting near Argun and other areas.

Interfax said Russian forces seized 13 people suspected for taking part in rebel action in Argun on Monday.

The rebels accused Russian forces of killing four citizens in the town and said 150 townsfolk had been rounded up.

Reports from the mainly-Muslim region in the North Caucasus differ widely on both sides.

Russian troops returned in October 1999 to restore order after pulling out in defeat in a 1994-96 war which left Chechnya with de facto independence.

Russian troops now claim control of all of the province, though almost daily attacks have taken the death toll among servicemen to over 3,000.

The crisis has defied a political solution despite a first contact in November between Kremlin and rebel envoys.