Article published on the 2008-09-27 Latest update 2008-09-29 08:17 TU
The MV Faina was seized on Thursday with a crew of 21 people on board as it neared the Kenyan port of Mombasa with a cargo of T-72 battle tanks, grenade-launchers and ammunition destined for Kenya's military.
"They are demanding 35 million dollars for the ransom, but I think it is the start of the negotiation," said Andrew Mwangura, co-ordinator of the East Africa Seafarers Assistance Programme.
"The pirates are heading towards Hobyo and Haradere and it seems that they are looking for chances to unload any light military supplies on board the ship," said Puntland official Bile Mohamoud Qabowsade.
"The area that the Ukirainian ship is believed to be heading to is exclusively controlled by Somali Islamist insurgents," says correspondent James Shimanyula.
Pirates who are holding more than a dozen merchant ships on Saturday released a Japanese boat for a ransom worth 1.4 million euros.
The Egyptian news agency Mena reports that pirates have released an Egyptian ship which was hijacked off Puntland earlier this month with 25 crew on board.
The International Maritime Bureau's Piracy Reporting Centre in Malaysia on Saturday reported that a Greek tanker with a crew of 19 was the latest to be captured.
Nine civilians were killed on Saturday in fighting between insurgents and African Union troops In the Somali capital Mogadishu.
The Al-Shebab movement, which ordered all flights into the city to cease on 16 September, fired mortar shells at the city's main airport, killing four people.
Another four were killed when mortar firehit a shop and one civilian was killed when a shell hit a bus. Eight people were wounded.