The spokesman for the pirates, contacted by AFP via satellite telephone, confirmed that they were surrounded by three foreign war vessels off Somalia's central coast and said the ship's crew was "safe and not harmed."

"What we are awaiting eagerly is the 20 million dollars (13.7 million euros), nothing less, nothing more," Sugule Ali said. On Saturday, figures ranging between five and 35 million dollars had been put forward.

Ali confirmed that the ship was under siege, but he said the pirates would not give themselves up.

"It is true we are surrounded by three foreign military vessels and there are some others we can see (in the) distance," he said.

"We are not afraid of their presence, that will not make us to abandon the ship or to refrain from asking (for) the money," Ali said. "There is no shortage of food supply and all the crew members are healthy and well including ours."

Later, however, the spokesman said that one of the hostages had died a "natural" death.

"He passed away today of a natural cause; he was not a victim of gunshots or violence," Ali said, while refusing to identify the alleged victim.

The report of a death could not be confirmed by an independent source.

Earlier, the adviser to the presidency of the semi-autonomous region of Puntland, Bile Mohamoud Qabowsade, told AFP that three warships were tracking the pirates and two were very close to it.

"One of these ships is from the United States and the other two are from European Union countries," he said, without naming the European countries.

The governments of Britain, France, Germany and Greece told AFP their sailors were not involved in this operation.

The MV Faina was seized on Thursday with a crew of 21 as it neared the Kenyan port of Mombasa with a cargo of tanks, grenade launchers and ammunition for the Kenyan army.

Kenya said it was not in contact with the pirates, but efforts were underway to free the freighter.

"Combined security efforts are still going on to secure the ship ferrying Kenya military equipment that was hijacked two days ago by pirates off the Somali coast. The Kenyan government is not in contact with the pirates," spokesman Alfred Mutua said in a statement.

"The Kenyan government will not engage (with) terrorists...," he added.

A tribal chief and local fishermen Sunday in Harardhere, around 410 kilometres (250 miles) north of Mogadishu, said the navy ships used loudspeakers to warn the pirates not to unload their cargo. So far the pirates had not responded to invitations for talks.

A Kenyan maritime official said the weapons belong to South Sudan, a claim that was rejected by Nairobi. South Sudan, which signed a peace agreement in 2005 with the Khartoum government ending 21 years of war, is not allowed to buy weapons.

"All indications are that the weapons belong to South Sudan," said Andrew Mwngura, who runs the Kenya chapter of the Seafarers Assistance Programme.

Kenya said the pirates were spreading "propaganda" about the weapons.

"There have been alarming propaganda by the pirates to media that the weapons are not for the Kenyan military. This is a tactic by the terrorists to try and fend off reprisals against them," Mutua said.

Another elder, Ali Harun, said: "The pirates made contacts with friends on the ground and they are saying that at least two warships came close to them, I believe they have no chances of escaping with the shipment."

According to the Ukrainian defence ministry, the Faina is carrying 33 Soviet-type T-72 tanks as well as armaments being delivered by Kiev as part of an arms deal with Kenya.

Seventeen Ukrainians are among the ship's 21-strong crew, which also includes three Russians and one Latvian.

On Friday the Russian navy dispatched the frigate Neustrashimy (Fearless) to the region in response to what it said was a "rise in pirate attacks, including against Russian citizens."

The US Defense Department said Friday it was monitoring the situation and "looking at possible options."

The coastal waters off Somalia, which has not had an effective central government for more than 17 years and is plagued by insecurity, are considered to be among the most dangerous waterways for shipping in the world.

At least 55 boats have been attacked in the Gulf of Aden and the Indian Ocean since January by Somali pirates, according to the International Maritime Office (IMB).

Last year more than 25 ships were seized by pirates in Somali coastal waters despite US navy patrols, the IMB said.

earlier related report
Russia sends warship after Somali pirates seize tank-laden vessel
A Russian warship headed for the seas off Somalia Saturday after pirates seized a Ukrainian freighter carrying 33 tanks, munitions and other weaponry, officials said.

The Faina, with a crew of 21, including three Russians, was hijacked on Thursday as it neared the Kenyan port of Mombasa with a cargo of T-72 battle tanks, grenade launchers, ammunition and spares for the Kenyan military, they said.

The frigate Neustrashimy (Fearless) was ordered to the region in response to "the rise in pirate attacks, including against Russian citizens," Russian navy spokesman Igor Dygalo said Friday.

"Russia's navy will send ships for temporary missions to areas made dangerous because of maritime piracy to protect Russian citizens and guarantee the safety of shipping," he said.

The frigate, armed with missiles and guns and carrying a crew of up to 200, will stay near Somalia "for more than two months in order to guarantee the safety of Russian ships," RIA Novosti news agency quoted the commander of the Baltic Fleet, Viktor Mardusin, as saying.

Ukraine's foreign ministry said late Thursday there were 17 Ukrainian nationals, three Russians and one Latvian aboard the Belize-flagged vessel.

"The captain reported that three cutter boats with armed people approached the Faina, and then communication was cut off," it added, quoting information given by operators Tomax Team.

In Nairobi Kenyan government spokesman Alfred Mutua said Friday the cargo includes "military hardware such as tanks and an assortment of spare parts for use by different branches of the Kenyan military."

"The government is in contact with international maritime agencies and other security partners in an endeavour to secure the ship and cargo," he said in a statement.

"However, it should be noted that because the ship had not yet docked at Mombasa, the responsibility of the insured cargo rests with the shipper."

In Kiev, Ukrainian Defence Minister Yury Yekhanurov said the Faina was carrying 33 T-72 tanks, grenade-launchers and ammunition.

Lawmaker Valery Konovalyuk, head of a parliamentary committee that oversees Ukraine's arms deals, told AFP the tanks had been sold to Kenya.

The cargo was one of the last shipments under a contract which saw 77 tanks supplied in 2007, he said.

The Soviet-era T-72 was a frontline tank in Warsaw Pact states and is still in service in more than 30 countries. The tanks and other weaponry carried on the Faina would be greatly prized by any of the warlords fighting each other in lawless Somalia.

In Washington the Pentagon said it was considering its options after the incident.

"The United States is monitoring this situation as it develops and looking at possible options," said Pentagon spokesman Bryan Whitman.

"Obviously a ship carrying cargo of that nature being hijacked off the coast of Somalia is something that should concern us," said Whitman.

"We very much care about piracy, we are also concerned about that type of a cargo and what it might be able to be used for and the origin of the hijackers," he said.

He added: "I am not going to speculate on the options we might pursue."

Dozens of ships, mainly merchant vessels, have been seized by gangs off Somalia's 3,700-kilometre (2,300-mile) coastline in recent years, despite the presence of Western navies deployed in the region to fight terrorism.

The pirates use speedboats and are armed with automatic weapons and rocket-propelled grenades. The harbour at Eyl, in the breakaway northern Somali province of Puntland, is a favourite hideout, and they sometimes hold ships for weeks until they are released for large ransoms paid by governments or owners.

In recent months, a multinational taskforce based in Djibouti has been patrolling parts of the Gulf of Aden and the Red Sea, where a pirate mothership is believed to be operating.

French naval commandos took action against pirates who seized two sailing vessels with French citizens aboard and arrested a dozen suspects.

They were brought to France and are awaiting trial on charges of hijacking, hostage-taking and armed robbery, which carry life sentences.

Somalia has been without an effective central authority since the 1991 ouster of president Mohamed Siad Barre set off a deadly power struggle that has defied more than a dozen peace initiatives.

Some pirates have justified their actions by claiming that, in the absence of a functional central authority in Somalia, they were battling illegal fishing and toxic waste dumping by foreign countries.

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