United States wants NATO to step up fight against Islamic State

BRUSSELS (Reuters) – The United States is pressing NATO to play a bigger role against Islamic State in Syria and Iraq, putting Washington at odds with Germany and France which fear the strategy would risk confrontation with the alliance’s old Cold War foe Russia.

All 28 NATO allies are already part of a 66-nation anti-Islamic State coalition, so the United States is looking to NATO as an institution to bring its equipment, training and the expertise it gained leading a coalition in Afghanistan.

“It is worth exploring how NATO, as NATO, could make an appropriate contribution, leveraging for example its unique capabilities, such as force generation,” U.S. Secretary of Defense Ash Carter said after meeting allies at NATO headquarters in Brussels last week and referring to NATO’s know-how in drumming-up troops, planes and ships from allies.

Seeking to recapture the Islamic State strongholds of Raqqa in Syria and Mosul in Iraq, Washington wants a bigger European response to the chaos and failing states near Europe’s borders.

Carter’s call for NATO’s help came as defense ministers from the anti-Islamic State coalition met last week at NATO headquarters in Brussels for the first time, albeit with NATO insignia removed from the walls.

Despite support from Britain, the U.S. push has not been received well by France and Germany.

Given Russia’s concerns over NATO expansion in eastern Europe, Paris and Berlin are worried that deeper NATO involvement in Syria could be taken by Moscow as a provocation that the alliance is seeking to extend its influence.

As the Russian-backed Syrian government advance nears NATO’s southeastern border, growing hostility between Russia and Turkey only makes some members of the alliance more reluctant, diplomats say.

Notwithstanding an agreement between Russia and the United States to avoid accidental military air incidents, France and Germany worry Russia’s targeting of opposition groups other than Islamic State increases the risks.

“NATO and Russia would not be fighting a common enemy,” a NATO diplomat said.

NON-COMBAT OPTIONS

Carter has sought to distinguish between Syria’s civil war and the fight against Islamic State, saying the campaign against the militant group will go on regardless, and has pushed allies to accelerate their efforts.

In that vein, Washington tested waters by making a request for NATO to provide its surveillance AWACS aircraft to the anti-Islamic State coalition fighting militants in Syria.

Germany pushed back on the AWACS request. That has forced a compromise by which NATO will send the planes to allied countries so as to free-up allies to send more of their own equipment to fight Islamic State in Syria, diplomats said.

France also sought assurances that the AWACS request did not mean NATO as an institution was being involved more deeply in the anti-Islamic State coalition.

Still, NATO Supreme Allied Commander General Philip Breedlove said planning for a bigger alliance role was “a natural shift … a natural evolvement of the thinking.”

“All our nations are under greater pressure, so this is just beginning. There is no detail but there are lots of opportunities that are being considered,” he said.

NATO involvement in Syria could help answer critics who say the alliance has watched passively as Russia has widened its role there. It could also address concerns expressed by southern allies, such as Spain, Italy and Portugal, that NATO does not have a strategy to address risks on the Mediterranean, the entry point for huge numbers of people fleeing conflict in the Middle East.

British Defense Secretary Michael Fallon said NATO might not yet be ready to move ahead along the lines suggested by Washington, “but the very fact that we brought together 45 members of the anti-IS coalition, inside NATO headquarters, shows you that we want to see a stronger governance of the coalition.”

“We want to be able to measure the progress of the campaign and to review it more regularly,” Fallon told Reuters.

For the moment, discussions on various options include more NATO training of Iraqi troops and police, as well as strengthening government departments in areas taken back from Islamic State, according a U.S. defense official.

The United States has made clear it does not see a role for Western combat troops. “Territory retaken from ISIL (Islamic State) has to be occupied and governed by people who are from the area and want to live there,” Carter said.

(Additional reporting by Phil Stewart in Washington and Sabine Siebold in Berlin; Editing by Robin Pomeroy)

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)

Americans kidnapped in Iraq last month released

BAGHDAD (Reuters) – Three U.S. citizens who were kidnapped in Baghdad last month have been released, an official in Iraq’s Interior Ministry and a senior government source said on Tuesday.

Unknown gunmen seized the trio from a private apartment in the capital’s southeasterly Dora district in mid-January.

U.S. and Iraqi sources said at the time that they were being held by an Iranian-backed Shi’ite militia, though Iraqi Prime Minister Haider al-Abadi later dismissed the likelihood of Iranian involvement.

“The three Americans were released in an area near Yousifiya, south of Baghdad. Intelligence forces received them and will hand them over to the American authorities (in Baghdad)”, an official in the interior minister’s office told Reuters.

The U.S. Embassy in Baghdad declined to comment immediately on the reports but a U.S. government source confirmed the release.

The three men are employed by a small company that is doing work for General Dynamics Corp, under a larger contract with the U.S. Army, according to a source familiar with the matter.

The Iraqi government has struggled to rein in the Shi’ite militias, many of which fought the U.S. military following the 2003 invasion and have previously been accused of killing and abducting American nationals.

Some analysts believe the kidnappings were meant to embarrass and weaken Abadi, who is trying to balance Iraq’s relations with rival powers Iran and the United States.

The names of two of the men are Wael al-Mahdawy and Amro Mohammed, according to a source familiar with the matter. The name of the third man has not been made available.

(Reporting by Stephen Kalin and Ahmed Rasheed; Editing by Kevin Liffey)

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)

Thousands of Iraqi refugees leave Finland voluntarily

HELSINKI (Reuters) – Thousands of Iraqi refugees who arrived in Finland last year have decided to cancel their asylum applications and to return home voluntarily, citing family issues and disappointment with life in the frosty Nordic country.

Europe is in the grip of its worst migrant crisis since World War Two, with more than a million people arriving last year, fleeing wars and poverty in the Middle East and beyond.

Germany and Finland’s neighbor Sweden have taken in many of the migrants but Finland too saw the number of asylum seekers increase nearly tenfold in 2015 to 32,500 from 3,600 in 2014.

Almost two thirds of the asylum seekers last year were young Iraqi men, but some are now having second thoughts, so Finland will begin chartering flights to Baghdad from next week to take them home.

Officials said about 4,100 asylum seekers had so far canceled their applications and that number was likely to reach 5,000 in the coming months.

“My baby boy is sick, I need to get back home,” said Alsaedi Hussein, buying a flight back to Baghdad at a small travel agency in Helsinki.

Somalia-born Muhiadin Hassan who runs the travel agency said he was now selling 15 to 20 flights to Baghdad every day.

“It’s been busy here for the past few months,” he said.

A majority of the home-bound migrants have told immigration services they want to return to their families, but some expressed disappointment with life in Finland.

“Some say the conditions in Finland and the lengthy asylum process did not meet their expectations, or what they had been told by the people they paid for their travel,” said Tobias van Treeck, program officer at the International Organization for Migration (IOM).

“TOO COLD”

Echoing that comment, travel agent Hassan said: “Some say they don’t like the food here, it’s too cold or they don’t feel welcome in Finland. There are many reasons.”

Nearly 80 percent of the migrants returning home are Iraqis. Just 22 of the 877 Syrians – whose country is racked by civil war – and 35 of the 5,214 Afghans who sought asylum in Finland last year have asked to return to their home country.

Along with other Nordic states, Finland has recently tightened its immigration policies, for example requiring working-age asylum seekers to do some unpaid work.

Hostility to migrants has also increased in Finland, a country with little experience of mass immigration and which now has economic problems.

Germany too, which took in 1.1 million people in 2015, has seen small numbers of Iraqi refugees choosing to go home.

Finland had been preparing to reject up to 20,000 asylum seekers from 2015, but the number of voluntary returnees could significantly reduce that figure.

“The number of returnees is increasing steadily … All asylum seekers are informed about the options for voluntary return and about the available financial assistance,” said Paivi Nerg, a senior official in the Finnish interior ministry.

However, most Iraqi returnees pay for their own flight home or seek help from Iraq’s embassy in Helsinki, she added.

Last year the Finnish government and the IOM provided financial help to 631 returnees and a similar number is expected this year.

The charter flights will carry up to 100 passengers back to Baghdad from Helsinki every week for as long as demand lasts, officials said.

(Editing by Jussi Rosendahl and Gareth Jones)

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)

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)