Peru Hostages held by Shining Path freed after clashes in Peru

(CNN) -- After battling government forces, a Maoist guerrilla group in Peru has released 36 hostages it captured earlier this week, state media reported Saturday.

Peru's Defense Ministry said that 1,500 government troops had encircled members of the Shining Path in southern Peru, the state-run news agency Andina reported. This action prompted the release of the hostages, who were identified as oil and gas workers.

Masked attackers had kidnapped dozens of workers in the town of Kepashiato early Monday morning, Andina reported earlier. It is not clear if all of the hostages have been released and are now safe.

A police captain was killed and two people were injured during a search operation Thursday, when suspected rebels opened fire on a military helicopter, Peru's government ombudsman said in a statement.

The Maoist guerrillas had demanded $10 million in ransom for the hostages, in addition to explosives and weapons. Read More

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