"At about 6:30 a.m. Moscow time [03:30 GMT] on Thursday, law enforcement officers in Baksan cordoned several members of illegal armed units in a private house and proposed they surrender, but they opened fire on the officers with automatic weapons," police said.
Police officers were forced to return fire.
"During the shootout, the militants holed themselves up in the building's basement, and police used grenades," a police source said, adding that all the militants were dead. Investigators are working to verify how many militants were involved and establish their identities.
"Bomb disposal experts are presently working at the scene to prevent any explosions, as there is information that the militants had explosive devices on them," the source said.
An investigation is underway.