Russian defence minister Anatoly Serdyukov said the Arctic Sea vessel was located 300 miles off Cape Verde islands in West Africa with its crew safe and well.
Serdyukov said the Finnish-owned ship's 15-man Russian crew was taken aboard a Russian naval vessel.
"The crew is alive, all are alive and healthy," the Russian added, confirming that those on board were not being held captive.
It was unclear what might have happened to the ship, which was last heard from on July 28 in the Bay of Biscay.
The 4,000-tonne vessel went off radar after passing through the English Channel.
The Arctic Sea's crew had earlier reported the freighter was raided by masked men.
They said that the attackers departed before the ship left the Baltic Sea en route to Algeria.
On Saturday police in Finland said a ransom demand had been made for the vessel, which was carrying timber.
There has been huge speculation over the reason for the ship's disappearance, ranging from pirates to a mafia dispute to a commercial quarrel.
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