Russian federal troops continued their assaults on rebels in the breakaway republic of Chechnya Thursday and fiercer fighting there have prompted the increase of refugee exodus to neighboring regions.

The federal forces have completed the blocking of the rebel formations in the area of the villages Belgatoi, Tsentoroi and Benoi-Vedeno in the Vedeno and Shali districts, the Interfax news agency reported, citing sources with the Russian Defense Ministry.

Up to 40 rebels were killed and three weapon emplacements and nine trucks destroyed in the process.

In Grozny, the Chechen capital, federal Russian troops continue to be engaged in trench fighting, with artillery fire against rebel position in the city as well as in neighboring areas Roshni-Chu, Yaryshmardy, Chishki, Ulus-Kert, Khimoi, and Chernorechye.

One federal serviceman was killed and three wounded over the last 24 hours, Interfax said, citing official information.

Meanwhile, interior troops continued the special operation of "cleaning up" Chechen areas under federal control.

General Anatoly Kvashnin, chief of Russia's general staff, said the Russian flag had been hoisted and a police station set up in the Chechen village of Nozhai-Yurt.

He told the NTV television station that federal forces had occupied the village of Sharoi and nearly all of the Sharoi district in Chechnya's mountainous part.

Following intensified fighting in Chechnya, the number of refugees fleeing the republic is rising again, exceeding the number of people coming back.

The return of refugees to Chechnya has been suspended following militant attacks on the towns of Argun, Shali and Gudermes, director of the Russian Federal Migration Service Vladimir Kalamanov said Thursday.

Federal troops have strengthened the screening of Chechen refugees crossing the borders with neighboring regions, but the tougher measures came under fire from Ruslan Aushev, president of the neighboring Ingushetia republic. (Xinhua)