The pirate kingpins who commute from the regional capital, Garowe, 100 miles west, in new 4x4 vehicles splash their money around. When a ransom is received the gunmen involved in hijacking the particular ship join in the splurge, much to the pleasure of long-time residents. Jaama Salah, a trader, said that a bunch of qat (a leafy narcotic) can sell for $65, compared with $15 in other towns. Asli Faarah, a tea vendor, said: "When the pirates have money I can easily increase my price to $3 for a cup."

DUBAI: The Indian Navy destroyed a “mother vessel” engaged in piracy in the Gulf of Aden a day after pirates forced a hijacked oil supertanker to enter Somalia’s perilous waters.

The incident took place 285 nautical miles (528 km) southwest of Oman’s port of Salalah on Tuesday.

According to the Navy, its warship INS Tabar spotted a ship which was similar to one of the vessels that was suspected of coordinating piracy in the Gulf of Aden.

Two speedboats were accompanying the “mother vessel.” The ship threatened to blow up Tabar when it was asked to stop for investigation. Armed with guns and rocket propelled grenades, the pirates were seen roaming on the upper deck of their ship. The Navy said Tabar retaliated when the other ship opened fire. Consequently, the vessel caught fire. Loud explosions could be heard, possibly because ammunition stored in the ship went off.

In its statement, the Navy added: “Almost simultaneously, the two speedboats were observed breaking off to escape. The ship chased the first boat, which was later found abandoned. The other boat made good its escape into darkness."

DUBAI: The Navy prevented the hijack of an Indian merchant ship on the high seas in the Gulf of Aden on Tuesday.

An armed helicopter on board the INS Tabar, patrolling the area, flew marine commandos to the ship, which the pirates had attacked. The pirates abandoned their attempt to board m.v. Jag Arnav, following the intervention by the commandos.

The hijack bid took place when the 38,265-tonne bulk carrier, owned by the Great Eastern Shipping Company, was sailing 60 nautical miles east of Aden. The INS Tabar was then 25 nautical miles away from the spot.

The Navy has been conducting anti-piracy patrols in the Gulf of Aden from October 23. A naval ship, with a contingent of marine commandos and helicopters on board, has been sent to the port of Salalah in southern Oman.

The Sirius Star, which is carrying $100m (£66m) worth of oil, was hijacked at the weekend.

The 330-metre oil tanker, the largest ship ever captured at sea, is reported to be anchored near the town of Harardheere on Somalia's eastern coast.

Its owner, Vela International, a subsidiary of the state oil company Saudi Aramco, yesterday opened ransom negotiations, according to the Saudi foreign minister, Prince Saud al-Faisal.

"I know the owners of the tanker are negotiating on the issue. We do not like to negotiate with terrorists or hijackers. But the owners of the tanker, they are the final arbiters of what happens there," he said.

Britain is to lead an armada of EU warships to the Gulf of Aden next month to tackle the escalating problem of piracy, in a mission expected to last 12 months.

The naval fleet, under UK command, would "disrupt and tackle the scourge of piracy", foreign secretary David Miliband said yesterday on a visit to Beirut. Piracy threatened trade and prosperity, he added.

EU military planners this week drew up a mandate, including rules of engagement for the use of force, for the mission at a meeting at Northwood, Britain's joint operations centre in north-west London. Plans for the EU fleet, led by HMS Northumberland and known as Operation Atalanta, are due to be formally agreed early next month, European defence officials said yesterday.

The EU fleet, originally proposed to escort boats carrying food aid to Somalia, should include ships from 10 countries.

Nato military chiefs, meeting in Brussels yesterday, indicated that a coordinated worldwide response was required to deal with piracy amid a plethora of proposals about how to deal with the problem.

Russia yesterday came up with its own proposal - land operations against the bases of Somali pirates.

Russia yesterday came up with its own proposal - land operations against the bases of Somali pirates.

Dmitry Rogozin, Russia's ambassador to Nato, said the view of Russian experts was that naval action alone, even involving the large fleet of a powerful nation, would not be enough to defeat the pirates, given Somalia's geo-strategic position.

"So it is up to Nato, the EU and other major stakeholders to conduct not a sea operation, but in fact a land coastal operation to eradicate the bases of pirates on the ground," he said. "Because we all know ... they have their bases on the ground and of course those actions should be coordinated with Russia," Rogozin said, without making clear whether he envisaged Russian involvement in any operation.