One person has been killed in a shootout at a candy factory in southeastern Moscow, with reports of an ongoing hostage situation.

Police have cordoned off the building of the Menshevik plant in Lyublino district, the Moskva news agency reported Wednesday. It cited an unnamed law enforcement source as saying the shooting took place because of a property dispute.

“One person fell victim to the shooting, three others were wounded,” a law enforcement source told the state-run TASS news agency.

An unspecified number of hostages are being held by the suspect, who is reportedly armed with a semi-automatic rifle, according to the state-run RIA Novosti news agency.

The radio station Business FM reported that it was able to get in touch with Menshevik’s director, Ilya Averyanov, by phone.

“My plant was seized with the use of fake documents, they have ruined me,” Averyanov is cited as saying.

“I have a service weapon and used it in defense today. Unfortunately, I believe I shot one to death."

Reports claim that a Moscow arbitration court was due to hear the plant’s bankruptcy claim on Jan. 18, 2018.

“If I stay alive, I will fight to the end," Averyanov said.