Shamil Basayev and a number of gunmen were killed during a special operation in Ingushetia on Sunday night, Director of the Federal Security Service (FSB) Nikolai Patrushev reported.
Mr Patrushev said that the armed group was in the process of preparing a terrorist attack in Ingushetia.
Mr Patrushev noted in particular that the group intended using the planned terrorist act as a means of putting pressure on the Russian leadership during the G8 summit.