Russia's North Ossetia Republic islocated in the country's northern Caucasus region where several hundred people, most of them children, were being held at gun-point in a school on Wednesday.

Its east borders the Ingush and Chechen Republics and its southlinks with Georgia's South Ossetia autonomous region. The republic covers an area of 7,000 square km and has a population of 500,000. Most of the residents are Orthodox Christian Ossetians and others are Russians, Ingush, Armenians, Georgians and Ukrainians.

North Ossetia is rich in natural resources including natural gas and oil.

Ossetia once was a big country in the region. Russians, who began to rule the region in the 18th century, established a colony in North Ossetia in 1784 and set up the Ossetia region in January 1921.

North Ossetia became an autonomous region of Russia in July 1924 and then the Soviet Socialist North Ossetia Autonomous Republic in December 1936. In 1991 it became the North Ossetia Autonomous Republic.

The Russian parliament approved a resolution in January 1992, agreeing to upgrade the autonomous republic to the North Ossetia Republic with eight districts, six cities and seven towns. The capital is Vladikavkaz.

North Ossetia has felt the aftershocks of the long-running and bitter conflict in Chechnya. The region's economy has been shrinking, leaving it vulnerable to the growing power of mafia groups and armed gangs.

In the past few years, illegal Chechen armed forces have carried out several attacks in the region. In March 1999 an attack on the capital's central market killed 60 people and wounded about 100 others.

In August 2003, the illegal armed forces bombed a military hospital in Mozdok city, leaving more 50 people dead and 80 othersinjured.