President Dzhokhar Dudayev has proposed that his self-declared independent republic of Chechnya become an Islamic state, introducing Sharia law and forming an Islamic battalion to "counter Russian aggression," news agencies reported Monday.


Dudayev's proposal came after government forces lost a strategic village to opposition forces in northwestern Chechnya.


Dudayev accused Russia of masterminding the attack on the village of Bratskoye, not far from the border with Russia, and said the action amounted to a declaration of war on Chechnya.


Addressing a congress of some 150 religious, clan and political leaders Sunday, Dudayev said one way to fight Russia's "aggression" would be to recognize Sharia, or Islamic, law.


"If the Russians will stop the aggression, we will take away this Islamic constitution," he said, according to The Associated Press.


Dudayev has in the past threatened to accept offers of Afghan mujahedin to help his government fight the opposition Provisional Council, which Moscow openly favors and helps with advice and money.


Dudayev has faced a growing economic crisis since Moscow cut off financial assistance to his government after his declaration of independence in 1991.


Reports of new mosques being built in villages suggest the predominantly Moslem republic is receiving funding from Islamic countries.


Chechen Foreign Minister Shamseddin Yusef told Interfax that leaders of several Islamic countries had urged him to accept Afghan guerrillas to fight Russian forces.


He warned Moscow would find "a second Afghanistan on its own territory" within a month if it did not hold talks with the Chechen leadership, Interfax reported.


Chechen Vice President Zelimkhan Yanderbiyev told Reuters that Russian forces, backed by 12 tanks, several armored carriers and five helicopters, crossed from the Russian border region of Stavropol to attack Bratskoye on Friday.


The Russian Defense Ministry in Moscow denied the allegations. "We're sick and tired of all these groundless accusations by Chechnya," a ministry spokesman said.