Russian federal troops Sunday flied their flag over Staropromyslovsky, Chechen capital Grozny's largest residential district, which was liberated from rebels on January 23, said the Itar-Tass news agency.

The flag was raised over the office of the district military commandant, where the first meeting between top officials of the Russian Combined Group in the North Caucasus and local residents' representatives was held, Itar-Tass cited Major-General Alexander Serov, deputy commander of the group, as saying.

Serov assured the local residents that all federal agencies responsible for restoring regular life will start to work in the area in the next few days.

It took the federal troops more than one month to free Staropromyslovsky. Initial reports about its liberation appeared early January, but fierce fighting continued there until Saturday.Several residential areas changed hands several times.

Meanwhile, fighting in Grozny is becoming increasingly intensive Sunday.

"The federal troops are fighting their way through the streets to the center of the city, rebuffing the rebels' strong resistance," said the headquarters of the combined federal group.

Five residential areas, a railway depot, a hospital, a canneryand the Prigorodny settlement have been liberated. The strategic motor bridge across the Sunzha river and the Minutka Square were seized by the federal troops Saturday, said the Russian Defense Ministry.

Heavy fighting is underway in the central part of the city and the rebels are fighting in small groups with the guerilla warfare tactics, said the Russian military.