Russia said yesterday it was having to rethink how to dislodge Muslim rebels from mountain villages in Dagestan but hailed what it called the achievement of its "strategic goals".
It said it had lost 40 men in 14 days of fighting rebels in the north Caucasus region of Dagestan, a strip of land on the west of the Caspian Sea. It put guerrilla dead at 400 to 500.
The rebels called Russian statements "100 per cent lies".
"Today, we can say our strategic goals have been reached," the Deputy Interior Minister, Mr Igor Zubov, told reporters after returning from the battle zone.
He said Russia had stopped the rebels, led by veteran fighters such as Mr Shamil Basayev, who masterminded Russia's defeat in the 1994-96 Chechen war, from setting up a separate Muslim state. The rebel forces had been split into small units but they had not been dislodged from inaccessible mountain villages. "The use of artillery and air strikes and other types of weapons which are in situ is not effective enough," he said, and the rebels had fortified the hills around the villages, which nestle in long, narrow valleys.
"They could be taken by a direct assault but it would bring big losses.
Therefore . . . I must say we have decided to make sure our losses come to a minimum."
On Wednesday Russia tried an abortive attack on the village of Tando. Mr Zubov said Russian troops were regrouping and would concentrate on destroying rebel communications and supply routes and carrying out "antiterrorist operations".
He said Russia had lost 40 soldiers, with 160 wounded, in fighting so far. Three helicopters had been destroyed. He claimed up to 500 rebels had been killed. Volunteer Dagestanis were fighting on the Russian side, 2,000 of whom had been armed with hunting rifles.
President Boris Yeltsin yesterday reappointed two deputy prime ministers and the Finance Minister, Mr Mikhail Kasyanov, to their posts in Mr Vladimir Putin's government, Interfax reported.