Russian federal troops blocked two villages at the Argun gorge in Chechnya as clean-up operations continued Monday in Grozny and other areas liberated from rebels of the breakaway republic.

Rebel units trying to break away to the west of Grozny, the Chechen capital, have been encircled near the village of Samashki,the Interfax news agency reported, quoting a source with the united federal command.

The guerrillas are bracing themselves for a lengthy resistance

in the Argun gorge, building defenses and attacking federal positions on strategically important heights, the source said.

Federal troops unleashed aerial and artillery strikes on rebel positions, killing some 300 militants in the past two days near the villages of Katyr-Yurt and Shaami-Yurt.

In Grozny, federal troops and pro-government Chechen militia units are repeating mop-up operations in the Zavodskoi and Chernorechye suburbs to root out rebels disguised as civilians.

As the federal campaign against rebels moved ahead, more refugees are returning to their homes. Over 102,000 people have returned to Chechnya, Interfax reported, citing the press service of the Emergency Situations Ministry. (Xinhua)