Government officials in the former Soviet republic of Georgia have said they know the identity of the gang that has kidnapped Welsh banking consultant Peter Shaw nearly three weeks ago.

Interior Minister Koba Narchemashvili said efforts were continuing to secure the release of Mr Shaw, who was abducted by gunmen in the capital Tiblisi.

Facts: Peter Shaw

Originally from Maesteg Home in Cowbridge Worked on EU project in Georgia Previously a Midland Bank manager Kidnapped on 18 June

Mr Shaw, 57, had been preparing to return to his south Wales home when he was seized on June 18.

Mr Narchemashvili has told the country's parliament the police have identified the group and that sensitive work was continuing to arrest them.

Meanwhile, the Foreign Office have refused to confirm reports the gang have demanded a ransom of over �1m.

The kidnappers are reported to have relayed the demand from telephone kiosks in the Georgian capital, Tbilisi, from where Mr Shaw was abducted by an armed gang on June 18.

The authorities have offered a �5,000 reward - about four years' earning in the former Soviet state - for information about his whereabouts.

Mr Shaw, from Cowbridge, in the Vale of Glamorgan, was taken just hours before he was due to return to the UK at the end of a six-year contract.

The Georgian government has indicated the abduction could be the work of trained, senior law enforcement officials.

A rescue operation on the streets of capital Tbilisi days after his disappearance failed to find the banker at his expected basement location.

Now sources within the Georgian Interior Ministry said unidentified kidnappers tried to call the EU sponsored bank where Mr Shaw worked.

It does not help anyone, least of all Mr Shaw, to speculate in these circumstances

Foreign Office

But local police and bank officials say they are unaware that such a ransom demand had been made.

A Foreign Office spokeswoman said: "There has been a lot of rumours and we are not in the game of commenting about rumours.

She said: "It does not help anyone, least of all Mr Shaw, to speculate in these circumstances."

This is the second report of Mr Shaw's kidnappers' being in touch with the Georgian authorities.

On Monday, his MP, Vale of Glamorgan member John Smith, reported that he had been told telephone contact had been made with the kidnappers.

Two detectives from Scotland Yard are in Georgia helping with the investigation.

Mr Shaw took early retirement as a manager with the Midland Bank six years ago.