Sanctions lifted

Forces loyal to Libya's deposed leader Moammar Gadhafi have held fast against another advance from troops of the country's interim government on the Gadhafi stronghold of Bani Walid Sunday.

Gadhafi's troops are well-entrenched in Bani Walid and have successfully held off the National Transitional Council's forces (NTC) for several days. Sunday's attempt ended in retreat under fire from rockets.

In another Gadhafi stronghold, Sirte, NTC forces continue their siege against the town on Sunday after being pushed back on Saturday.

Gaddafi spokesman Moussa Ibrahim said on Saturday the resistance would continue for "months and months."

NATO on Saturday said it will look into allegations that its airstrikes killed hundreds of civilians in Sirte. A spokesman for fugitive leader Moammer Gadhafi claimed over 350 people were killed in a NATO bombing.

The Western military alliance said that such claims are often made and proven to be unfounded.

UN eases sanctions

The UN Security Council on Friday voted unanimously for a resolution that will both ease sanctions on Libya, slapped against deposed leader Moammar Gadhafi six months ago, and recognize the National Transitional Council as the sole representative of the Libyan people at the United Nations in New York.

The resolution begins lifting punitive measures imposed on the oil-exporting country when Gaddafi was overseeing a crackdown against pro-democracy demonstrators; it will "ensure that assets frozen pursuant to (UN sanctions resolutions) shall as soon as possible be made available to and for the benefit of the people of Libya."

All sanctions against the Libyan National Oil Corp and Zueitina Oil Co are to be lifted as part of what British Ambassador Mark Lyall Grant said was an effort to "help kick-start Libya's economy and encourage economic self-sufficiency."

The resolution also establishes a UN mission made up of some 200 people in Libya to help the North African nation get back on its feet.

An initial three-month phase of the mission is to help the government with a post-conflict transition. Their tasks are expected to include police training and electoral assistance, but will not include deployment of peacekeepers or police, according to UN sources.

Gadhafi still in Libya, confident of victory

Meanwhile, Gadhafi's whereabouts still remain a mystery.

Gadhafi's spokesman told the Reuters news agency on Saturday that the fugitive leader was personally directing the loyalist fighters holding back transitional forces in Sirte and Bani Walid.

"He is leading all aspects of this struggle. He is talking to the people, he is lecturing, he is discussing, he is looking after all matters of the resistance," Ibrahim said, adding that Gadhafi was still in Libya and confident of victory.

Author: Gabriel Borrud, Matt Zuvela (Reuters, AFP)

Editor: Sonia Phalnikar