Radioactive material stolen in Iraq raises security fears

BAGHDAD (Reuters) – Iraq is searching for “highly dangerous” radioactive material whose theft last year has raised fears among Iraqi officials that it could be used as a weapon if acquired by Islamic State.

Baghdad reported the stolen material to the International Atomic Energy Agency (IAEA) in November but has not requested assistance to recover it, the U.N. nuclear watchdog said on Wednesday.

The material, stored in a protective case the size of a laptop computer, went missing from a storage facility near the southern city of Basra belonging to U.S. oilfield services company Weatherford <WFT.N>, an environment ministry document seen by Reuters showed and security, environmental and provincial officials confirmed.

A spokesman for Iraq’s environment ministry said he could not discuss the issue, citing national security concerns.

Weatherford said in a statement that it was not responsible or liable for the theft. “We do not own, operate or control sources or the bunker where the sources are stored,” it said.

The material, which uses gamma rays to test flaws in materials used for oil and gas pipelines in a process called industrial gamma radiography, is owned by Istanbul-based SGS Turkey, according to the document and officials.

An SGS official in Iraq declined to comment and referred Reuters to its Turkish headquarters, which did not respond to phone calls and emails.

The U.S. State Department said it was aware of the reports but has seen no sign that Islamic State or other militant groups have acquired it.

The environment ministry document, dated Nov. 30 and addressed to the ministry’s Centre for Prevention of Radiation, describes “the theft of a highly dangerous radioactive source of Ir-192 with highly radioactive activity belonging to SGS from a depot belonging to Weatherford in the Rafidhia area of Basra province”.

A senior environment ministry official based in Basra, who declined to be named as he is not authorized to speak publicly, told Reuters the device contained up to 10 grams (0.35 ounces) of Ir-192 “capsules”, a radioactive isotope of iridium also used to treat cancer.

The IAEA said the material is classed as a Category 2 radioactive source, meaning that if not managed properly it could cause permanent injury to a person in close proximity to it for minutes or hours, and could be fatal to someone exposed for a period of hours to days.

How harmful exposure can be is determined by a number of factors such as the material’s strength and age, which Reuters could not immediately determine. The ministry document said the material posed a risk of bodily and environmental harm as well as a national security threat.

DIRTY BOMB FEAR

Large quantities of Ir-192 have gone missing before in the United States, Britain and other countries, stoking fears among security officials that it could be used to make a dirty bomb.

A dirty bomb combines nuclear material with conventional explosives to contaminate an area with radiation, in contrast to a nuclear weapon, which uses nuclear fission to trigger a vastly more powerful blast.

“We are afraid the radioactive element will fall into the hands of Daesh,” said a senior security official with knowledge of the theft, using an Arabic acronym for Islamic State.

“They could simply attach it to explosives to make a dirty bomb,” said the official, who works at the interior ministry and spoke on condition of anonymity as he is also not authorized to speak publicly.

There was no indication the material had come into the possession of Islamic State, which seized territory in Iraq and Syria in 2014 but does not control areas near Basra.

A State Department spokesman declined to comment on whether the missing material might be suitable for use in a dirty bomb.

The security official, based in Baghdad, told Reuters there were no immediate suspects for the theft. But the official said the initial inquiry suggested the perpetrators had specific knowledge of the material and the facility. “No broken locks, no smashed doors and no evidence of forced entry,” he said.

An operations manager for Iraqi security firm Taiz, which was contracted to protect the facility, declined to comment, citing instructions from Iraqi security authorities.

A spokesman for Basra operations command, responsible for security in Basra province, said army, police and intelligence forces were working “day and night” to locate the material.

The army and police have responsibility for security in the country’s south, where Iranian-backed Shi’ite Muslim militias and criminal gangs also operate.

POLLUTION RISK

Iraqi forces are battling Islamic State in the country’s north and west, backed by a U.S.-led coalition. The Sunni Muslim militant group has been accused of using chemical weapons on more than one occasion over the past few years.

The closest area fully controlled by Islamic State is more than 300 miles north of Basra in the western province of Anbar. Islamic State controls no territory in the predominantly Shi’ite southern provinces but has claimed bomb attacks there, including one that killed 10 people in October in the district where the Weatherford facility is located.

Besides the risk of a dirty bomb, the radioactive material could cause harm simply by being left exposed in a public place for several days, said David Albright, a physicist and president of the Washington-based Institute for Science and International Security.

“If they left it in some crowded place, that would be more of the risk, if they kept it together but without shielding,” he said. “Certainly it’s not insignificant. You could cause some panic with this. They would want to get this back.”

The senior environmental official said authorities were worried that whoever stole the material would mishandle it, leading to radioactive pollution of “catastrophic proportions”.

A second senior environment ministry official, also based in Basra, said counter-radiation teams had begun inspecting oil sites, scrapyards and border crossings to locate the device after an emergency task force raised the alarm on Nov. 13.

Two Basra provincial government officials said they were directed on Nov. 25 to coordinate with local hospitals. “We instructed hospitals in Basra to be alert to any burn cases caused by radioactivity and inform security forces immediately,” said one.

(Additional reporting by Humeyra Pamuk in Istanbul, Jonathan S. Landay and Arshad Mohammed in Washington; Writing by Stephen Kalin; Editing by Pravin Char/Mark Heinrich)

Indonesia plans tougher anti-terrorism laws after Jakarta attack

JAKARTA (Reuters) – Indonesia has drawn up plans for tougher anti-terrorism laws following last month’s militant attack on the capital, including detention without trial for up to three months compared with a week now, government sources told Reuters on Tuesday.

The proposals are likely to draw fire from human rights activists, who have warned against jeopardizing hard-won freedoms over nearly two decades since the end of authoritarian president Suharto’s rule.

However, officials anticipate little opposition in parliament to the legislation, which would not be as strict as counter-terrorism laws passed in recent years by neighbors Australia and Malaysia.

President Joko Widodo’s government moved quickly to reform the country’s 2003 anti-terrorism law after Jan. 14, when four men attacked Jakarta’s business district with guns and explosives. Islamic State claimed responsibility for the assault, in which the militants and four others died.

Details of the overhaul have been kept confidential, but two government sources with direct knowledge of the draft law said it would broaden the definition of terrorism and make it easier to both arrest and detain suspects.

The sources declined to be named because the legislation, which could be passed within the next few months, is still under consideration by parliament, where Widodo enjoys strong cross-party support.

“The new definition of terrorism includes the possession, distribution and trade of any weapons … or potential material that can be used as weapons for terrorism acts,” said one.

EVIDENCE IN COURT

The maximum period allowed for detention without trial will be lifted to 90 days and for preventive detention to 120 days, both from a current limit of one week.

The law will also allow authorities to target anyone who recruits members for, or cooperates with a militant group, and to use electronic communications, intelligence reports and financial transactions as evidence in court against suspects.

Indonesians who have joined militant training or participated in terrorist acts in a foreign country will be stripped of their citizenship.

Security officials say about 500 Indonesians have traveled to Syria and Iraq to join the radical group Islamic State and they estimate that about one in five of these has returned, although most did not see frontline combat.

Over the past two months, Indonesian counter-terrorism forces have arrested dozens of men suspected of plotting attacks on government targets and major landmarks, and last week seven men were jailed for being sympathizers of Islamic State.

But police have long complained that even when they are aware of radical activities, they are unable to detain known militants unless they threaten or actually carry out an attack.

The new law will allow the arrest of people merely “if they assemble to discuss terrorist and radical acts”.

The International Commission of Jurists last month urged the government not to undermine the process of justice by making it easier for authorities to arrest people irrespective of whether there is sufficient evidence of criminal activity.

OTHERS ARE MORE STRICT

Elsewhere in the region, counter-terrorism measures have been more far-reaching.

Malaysia last April reintroduced a law under which individuals can be detained without trial for up to two years with two-year extensions thereafter.

Australia has in recent years passed measures banning its citizens from returning from conflict zones in Syria and the Middle East, while making it easier to monitor domestic communications.

Indonesia has the world’s largest population of Muslims and the vast majority of its 250 million people practise a moderate form of Islam.

However, the Southeast Asian country saw a spate of attacks in the 2000s, the deadliest of which was a nightclub bombing on the resort island of Bali that killed 202 people.

Police have been largely successful in destroying domestic militant cells since then, but officials have grown increasingly concerned about a resurgence inspired by Islamic State and officials say homegrown radicals are regrouping.

Security experts say one problem is that high-security prisons have become breeding grounds for militants, with radical clerics being able to preach and communicate with followers from behind bars.

The government sources said one of the legislative changes proposed involves segregating prisoners convicted of terrorism from other inmates to minimize radicalization in prisons.

Terrorism convicts will also be separated into three categories: masterminds or those involved in planning attacks, those involved in executing plans, and followers.

(Writing by Kanupriya Kapoor; Editing by John Chalmers and Mike Collett-White)

Germany shuts down Islamic center in Bremen, raids apartments

BREMEN, Germany (Reuters) – The northern German city-state of Bremen shut down an Islamic cultural center on Tuesday after police raided it and the apartments of 12 of its members on suspicion of associations with Islamist militants.

Bremen Interior Minister Ulrich Maeurer said The Islamic Association Bremen was closely linked to a similar cultural organization that was banned after some of its members joined the Islamic State (IS) insurgent group in Syria.

More than 220 officers participated in the raids, confiscating mobile phones, computers, hard drives and other memory cards, Maeurer told a news conference.

No arrests were made. Police also searched a car repair shop in Delmenhorst, just outside Bremen.

“This organization has promoted the radicalization of people, and support and following for IS. It really does mean that people who live in our immediate neighborhood are willing to become terrorists overnight,” Maeurer said.

“So I must sound cynical when I ask: What security do we have when they only plan attacks in Syria? We must assume that this could also happen in Germany.”

Bremen authorities banned the Culture and Family Society in the city in December 2014, saying that it had promoted jihad (holy war) and martyrdom among members, six of whom died while fighting with IS in Syria.

The German federal police chief said last month that the number of Islamist militants returning to Germany from Syria and Iraq was on the rise and more than 400 people were under surveillance.

(Reporting by Reuters TV; Writing by Joseph Nasr; Editing by Mark Heinrich)

Nearly 5,700 buildings in Iraq’s Ramadi need repair, U.N. says

BAGHDAD (Reuters) – Around 5,700 structures in the western Iraqi city of Ramadi and its outskirts have incurred some level of damage since mid-2014, and almost 2,000 buildings have been destroyed, the United Nations said on Monday, citing satellite images.

Iraq declared victory over Islamic State in December after seizing the main government building in the city, the provincial capital of Anbar. But more than six months of fighting shattered most infrastructure and leveled many homes in the city, where around half a million people once lived.

The impact of Islamic State bomb attacks and U.S.-led coalition air strikes has been documented by the United Nations Institute for Training and Research, which compared satellite imagery collected last month with images from July 2014.

More than 3,200 structures in the city center have been affected, with 1,165 destroyed, the analysis showed. Those figures nearly double when outlying areas are included.

It is not clear what percentage of Ramadi has been affected, but the imagery shows none of the central districts has been spared and almost every block has incurred at least some damage.

A U.N. statement called the analysis preliminary and said it had not been validated in the field. Baghdad has not yet declared the city safe for return; Iraqi special forces clashed with militants in some districts as recently as last week.

The cash-strapped government in Baghdad is appealing to international donors to help rebuilding Ramadi, the largest city retaken from Islamic State. But it must first clear explosives planted by the militants in streets and buildings – an effort which also requires funding Iraq doesn’t have.

The United Nations is working with local authorities on plans to rebuild health, water and energy infrastructure. Meanwhile, displaced residents are waiting in camps or rented accommodations in other parts of the country.

It is expected to take months to secure the city before reconstruction can begin.

(Reporting By Stephen Kalin, editing by Larry King)

Samples confirm Islamic State used mustard gas in Iraq, diplomat says

AMSTERDAM (Reuters) – Islamic State militants attacked Kurdish forces in Iraq with mustard gas last year, the first known use of chemical weapons in Iraq since the fall of Saddam Hussein, a diplomat said, based on tests by the global chemical weapons watchdog.

A source at the Organization for the Prohibition of Chemical Weapons (OPCW) confirmed that laboratory tests had come back positive for the sulfur mustard, after around 35 Kurdish troops were sickened on the battlefield last August.

The OPCW will not identify who used the chemical agent. But the diplomat, speaking on condition of anonymity because the findings have not yet been released, said the result confirmed that chemical weapons had been used by Islamic State fighters.

The samples were taken after the soldiers became ill during fighting against Islamic State militants southwest of Erbil, capital of Iraq’s autonomous Kurdish region.

The OPCW already concluded in October that mustard gas was used last year in neighboring Syria. Islamic State has declared a “caliphate” in territory it controls in both Iraq and Syria and does not recognize the frontier.

Experts believe that the sulfur mustard either originated from an undeclared Syrian chemical stockpile, or that militants have gained the basic know how to develop and conduct a crude chemical attack with rockets or mortars.

Iraq’s chemical arsenal was mainly destroyed in the Saddam era, although U.S. troops encountered some old Saddam-era chemical munitions during the 2003-2011 U.S. occupation.

Syria gave up its own chemical weapons, including stockpiles of sulfur mustard, under international supervision after hundreds of civilians were killed with sarin nerve gas in a Damascus suburb in 2013, an attack Western countries blame on President Bashar al-Assad’s government, which denies it.

Sulfur mustard is a Class 1 chemical agent, which means it has very few uses outside chemical warfare. Used with lethal effectiveness in World War One, it causes severe delayed burns to the eyes, skin and respiratory tract.

(Reporting by Anthony Deutsch; Editing by Peter Graff)

Iraq moving troops, preparing offensive to retake Mosul

BAGHDAD (Reuters) – Iraq’s military said on Friday it was mobilizing troops to prepare for an offensive the government has pledged to launch this year to retake the northern city of Mosul from Islamic State.

Hundreds of forces from the army’s 15th division reached Makhmour base, 45 miles south of Mosul, and more forces, including Sunni Muslim tribal fighters, were expected to arrive in coming days, said Brigadier-General Yahya Rasool, spokesman for the joint operations command.

Defense Minister Khaled al-Obaidi told Reuters last month that Iraq would launch the Mosul operation in the first half of the year and Prime Minister Haider al-Abadi has said 2016 would see the “final victory” against the militants.

Some U.S. officials have endorsed that assessment, but a top U.S. intelligence officer told Congress this week any operation to retake Mosul would be long and complex and unlikely to finish this year.

With more than a million people still living there, Mosul is the largest city controlled by Islamic State, which declared a ‘caliphate’ in swathes of territory it seized in Iraq and neighboring Syria in 2014.

Retaking it would be a huge boost for Iraqi forces who, backed by air strikes from a U.S.-led coalition, reclaimed the western city of Ramadi from Islamic State in late December.

Mosul, however, is a far larger city with a populace made up of many sects. And even in Ramadi, Iraqi forces are still working to secure that city and its environs.

Iraq’s Rasool told Reuters on Friday that troop movements south of Mosul were being coordinated with the peshmerga, the armed forces of the autonomous Kurdish region north and east of Nineveh which are expected to join the campaign.

“Once we complete all the preparations, we will officially announce the date for the start of Mosul operations,” he added.

The United States, which is leading an international campaign in both Iraq and Syria to defeat the jihadist group, has said its strategy is to regain territory at the heart of Islamic State’s cross-border state, take Mosul and the Syrian city of Raqqa, and destroy the confidence of its fighters that it can expand as a magnet for jihadis.

Iraq’s army, weakened by years of corruption and mismanagement following the U.S.-led invasion in 2003, is trying to rebuild itself after collapsing 18 months ago in the face of Islamic State’s lightning advance.

(Reporting By Stephen Kalin and Ahmed Rasheed; Editing by Andrew Heavens)

U.S. tells allies campaign to defeat Islamic State must be accelerated

BRUSSELS (Reuters) – The United States pressed allies on Thursday to contribute more to a U.S.-led military campaign against Islamic State that it says must be accelerated, regardless of the fate of diplomatic efforts to end Syria’s civil war.

U.S. Defense Secretary Ash Carter started talks on Thursday in Brussels with more than two dozen defense ministers, including from key ally Saudi Arabia, which renewed its offer potentially to send troops into Syria.

Carter’s push came a day after France delivered a rebuke to President Barack Obama, demanding that Washington show a clearer commitment to resolving the crisis in Syria where Russia is tipping the military balance in favor of President al-Bashar Assad.

The talks take place as U.S. Secretary of State John Kerry leads a diplomatic push in Munich to rescue imperiled peace efforts, which are being held despite Russian bombing raids to bolster Syrian forces around the city of Aleppo.

Carter sought to draw a line between military and diplomatic efforts. “Our focus here is going to be on counter-ISIL and that campaign will go on because ISIL must be defeated, will be defeated, whatever happens with the Syrian civil war,” Carter told reporters, using an acronym for Islamic State.

“But it certainly would help to de-fuel extremism if the Syrian civil war came to an end.”

The United States hopes the face-to-face gathering of coalition defense ministers will allow it to secure more support for a military campaign that aims to recapture the Islamic State strongholds of Raqqa in Syria and Mosul in Iraq.

WARPLANES, TRAINING, SURVEILLANCE

Carter plans to offer a long list of required military capabilities — which, beyond air power, include training Iraqi forces and help with intelligence and surveillance. Carter said countries that cannot contribute militarily can help in other ways, like by choking Islamic State financing.

“We’ll all look back after victory and remember who participated in the fight,” Carter said, addressing the coalition defense ministers, adding the campaign would move more swiftly “if all of the nations in this room do even more”.

He also predicted “tangible gains” on the ground in the coming weeks, vague terminology that could mean anything from territorial advances to strikes against militant leaders or infrastructure.

Saudi Arabia’s Brigadier General Ahmed Asseri, a military spokesman, said his country was ready to send troops into Syria if there was a consensus in the coalition. But he declined to elaborate, saying: “It is too early to talk about such options.”

“Today we are talking at the strategic level,” Asseri told reporters in Brussels.

Carter and U.S. defense officials also sought to manage expectations about the talks, since many ministers will not be able to make new commitments without first winning support from their parliaments. The timeline for the campaign to retake Raqqa and Mosul is also unclear.

The head of the U.S. Defense Intelligence Agency cautioned this week that Iraqi forces were unlikely to recapture Mosul this year, despite hopes by Baghdad.

Carter only said securing Raqqa and Mosul needed to happen “as soon as possible”. He also acknowledged the need to grapple with Islamic State’s spread beyond Syria and Iraq, particularly in Libya.

WASHINGTON FACES SCEPTICISM

Even if there is consensus on the military plan to fight Islamic State on Thursday, it is unlikely to diminish scepticism about broader U.S. policy in Syria, which has sought to limit America’s role in the civil war.

French Foreign Minister Laurent Fabius on Wednesday questioned the commitment of the United States to resolving the Syrian war. Rebel groups say that while Washington has put pressure on them to attend peace talks, they see less help on the battlefield.

NATO ally Turkey has meanwhile, upbraided the United States for supporting Syrian Kurdish PYD rebels, saying Washington’s inability to understand the group’s true nature had turned the region into a “sea of blood”.

Eager to sidestep such friction, NATO allies have focused on grappling with the humanitarian fallout from Syria’s conflict at talks over the past two days.

NATO announced on Thursday it will seek to help slow refugee flows through the Aegean Sea with a maritime mission to target criminal people smuggling networks.

(Reporting by Phil Stewart and Robin Emmott, additional reporting by Sabine Seibold, editing by Peter Millership)

FBI director says investigators unable to unlock San Bernardino shooter’s phone content

WASHINGTON (Reuters) – FBI Director James Comey said on Tuesday that federal investigators have still been unable to access the contents of a cellphone belonging to one of the killers in the Dec. 2 shootings in San Bernardino, California, due to encryption technology.

Comey told the Senate Intelligence Committee that the phenomenon of communications “going dark” due to more sophisticated technology and wider use of encryption is “overwhelmingly affecting” law enforcement operations, including investigations into murder, car accidents, drug trafficking and the proliferation of child pornography.

“We still have one of those killer’s phones that we have not been able to open,” Comey said in reference to the San Bernardino attack.

Syed Rizwan Farook, 28, launched the Islamic State-inspired attack with his wife, Tashfeen Malik, 29, at a social services agency in the California city, leaving 14 dead.

Comey and other federal officials have long warned that powerful encryption poses a challenge for criminal and national security investigators, though the FBI director added Tuesday that “overwhelmingly this is a problem that local law enforcement sees.”

Technology experts and privacy advocates counter that so-called “back door” access provided to authorities would expose data to malicious actors and undermine the overall security of the Internet.

A study from the Berkman Center for Internet and Society at Harvard released last month citing some current and former intelligence officials concluded that fears about encryption are overstated in part because new technologies have given investigators unprecedented means to track suspects.

Senator Ron Wyden, an Oregon Democrat, asked Director of National Intelligence James Clapper to provide a declassified response to the Berkman study within 60 days. Clapper agreed to the request.

The White House last year abandoned a push for legislation that would mandate U.S. technology firms to allow investigators a way to overcome encryption protections, amid rigorous private sector opposition. But the issue has found renewed life after the shootings in San Bernardino and Paris.

Senators Richard Burr and Dianne Feinstein, the Republican and Democratic leaders of the intelligence panel, have said they would like to pursue encryption legislation, though neither has introduced a bill yet.

(Reporting by Dustin Volz and Mark Hosenball; editing by Sandra Maler and G Crosse)

U.S. looks to shore up allies’ support to battle Islamic State

BRUSSELS (Reuters) – The United States said on Tuesday it hoped allies demonstrate a willingness to ramp up their contributions to the fight against Islamic State and to deterring Russia in eastern Europe during high-level defense talks in Brussels this week.

Defense Secretary Ash Carter said he plans to outline America’s plan to accelerate the campaign against Islamic State to defense chiefs from more than two dozen allies at talks on Thursday.

The United States has long-standing concerns that many allies are not contributing nearly enough to combat the jihadist group that has spread beyond its self-declared caliphate in parts of Iraq and Syria.

“I don’t think anybody’s satisfied with the pace of the (campaign), that’s why we’re all looking to accelerate it. Certainly the president isn’t (satisfied),” Carter told reporters traveling with him.

Washington has signaled the need for military and police trainers as well as contributions of special operations forces, including from Sunni Muslim Arab allies now expressing a new willingness to contribute.

“We have a very clear operational picture of how to do it. Now we just need the resources and the forces to fall in behind it,” he said, noting plans to capture Islamic State strongholds of Mosul in Iraq and Raqqa in Syria.

A top U.S. intelligence official told Congress on Tuesday that an Iraqi-led operation to retake Mosul is unlikely to take place this year.

The U.S. strategy in Syria is likely to come under intense scrutiny after four months of Russian air strikes have tipped momentum toward President Bashar al-Assad in Syria’s five-year-old civil war.

Defense chiefs were expected to discuss a major Syrian government offensive backed by Russia and Iran now underway near Aleppo that rebels say threatens the future of their insurrection.

DETERRING RUSSIA

On Wednesday, NATO defense ministers will begin outlining plans for a complex web of small eastern outposts, forces on rotation, regular war games and warehoused equipment ready for a rapid response force.

U.S. plans for a four-fold increase in military spending in Europe to $3.4 billion in fiscal year 2017 are central to the strategy, which has been shaped in response to Russia’s annexation of Crimea from Ukraine in 2014.

“I’ll be looking for others in NATO to echo (us) in our investment,” Carter said.

Carter said the plan aimed to move NATO to a “full deterrence posture” to thwart any kind of aggression.

“It’s not going to look like it did back in Cold War days but it will constitute, in today’s terms, a strong deterrent,” Carter said.

(Reporting by Phil Stewart; Editing by Alistair Bell)

Iraq’s troubled finances slow efforts to rebuild Ramadi

BAGHDAD (Reuters) – Strain on Iraq’s budget from falling oil prices is delaying the removal of Islamic State explosives in Ramadi and the restoration of basic services needed for displaced civilians to return to the western city.

The army declared victory in December over Islamic State (IS) after elite counter-terrorism forces seized the Anbar provincial capital’s main government building. On Tuesday those forces reclaimed strategic territory linking the city to a major army base nearby.

The recapture of Ramadi was the first major gain for the U.S.-trained army since it collapsed in the face of an assault by the ultra-hardline Sunni militants in 2014. Its recovery boosted Prime Minister Haider al-Abadi in his quest to oust IS from Mosul, northern Iraq’s biggest city, later this year.

But Ramadi’s hundreds of thousands of residents will not be able to go home until bombs are removed and infrastructure damaged by six months of fighting is rehabilitated – operations that require tens of millions of dollars Baghdad cannot spare.

“We know that the government has its back against the wall fiscally. In order to stabilize areas and to help displaced families go back, we’ve got to do more,” said Lise Grande, the United Nations’ humanitarian coordinator in Iraq. She appealed to international donors for at least $40 million more for initial reconstruction efforts.

Iraq, with income nearly exclusively from oil, is struggling to pay its bills amid the fall in global crude prices. Anbar Governor Sohaib al-Rawi said his provincial government had not received its share of the federal budget in about two months.

“The local government has accumulated debts from last year which will be paid from this budget,” al-Rawi told reporters in Baghdad, declining to define the size of the debt.

Besides U.N.-funded activities, he said efforts to prepare Ramadi for the return of civilians were being financed “through local efforts” of provincial authorities, without providing details.

Unless additional funds are provided, it could take nine months for those efforts just to clear Tamim, a large district in southern Ramadi where the first phase of U.N. efforts will be conducted, according to Grande.

The United Nations also plans to rehabilitate health, water and energy infrastructure in the city, much of which was destroyed in fighting that included Islamic State bomb attacks and devastating U.S.-led coalition air strikes.

“The level of destruction in Ramadi is as bad as anything we have seen anywhere in Iraq,” said Grande. “Thousands of homes have to be rebuilt, thousands of buildings have to be rebuilt. The total cost of reconstruction in Ramadi is huge.”

STRATEGIC ADVANCE

Tuesday’s advance by Iraqi forces in Ramadi’s eastern farmlands boosted government efforts to close in on Falluja, the Islamic State stronghold located halfway to Baghdad and now besieged by the Iraqi army and allied, Iranian-backed Shi’ite Muslim militias.

The ultra-hardline Sunni militants of IS swept through a third of Iraq in 2014, declaring a caliphate in Iraq and Syria, carrying out mass killings and imposing a draconian form of Islam, but have since been pushed back on various fronts.

A military statement broadcast on state television said the army, police and counter-terrorism forces had retaken several areas, including the town of Husaiba al-Sharqiya, about 10 km (6 miles) east of Ramadi.

“(Our forces) also managed to open the road from Ramadi to Baghdad that passes through al-Khaldiya,” the statement added, referring to a highway that links the city to the Habbaniya army base where U.S.-led coalition forces are located.

“All of Ramadi has now been liberated,” said al-Rawi, the Anbar governor, adding that the handover of authority to local police from the military was going smoothly. No civilians are currently living in the city, he added.

It has taken more than a month for the military to clear insurgents from the eastern rural outskirts. Militants are still holed up in some northern farmlands bordering the main east-west highway, according to security sources.

(Reporting by Ahmed Rasheed and Stephen Kalin; Editing by Mark Heinrich and Dan Grebler)