Russian security forces freed seven hostages and killed 11 gunmen, after they stormed two militant hideouts in a southern city Friday, according to Interior Ministry of Kabardino-Balkaria republic.

On Thursday, the militants launched the latest rebel offensive in Russia's volatile North Caucasus region.

Russian troops stormed a regional Interior Ministry building in Nalchik, the regional capital of Kabardino-Balkaria republic, where the militants were hiding on Friday morning. The troops freed five hostages and killed eight militants there, Russian Deputy Prosecutor General Vladimir Kolesnikov told the Interfax news agency.

Security forces freed two hostages that were held in a souvenir shop in central Nalchik and killed three militants, Russian news agencies reported.

About 150 militants attacked police stations and buildings of the regional Interior Ministry and the security service in Nalchik,taking hostages and trading fire with security forces on Thursday.

The situation in the city is returning to normal, said an Interior Ministry spokesman.

(Xinhua News Agency October 15, 2005)