Up to 50 petrol bombs were thrown when a mob of 100 people attacked police in Fanad Drive, Creggan.
Police say they had been carrying out searches in the hunt for explosives and guns ahead of a Saoradh organised parade on Easter Monday in Creggan.
During the serious rioting, a lone gunman appeared from the shadows and opened fire on as crowds milled in the street.
Journalist Lyra McKee, who was standing beside a police landrover, was hit by the bullets.
Police say officers administered first aid to the 29-year-old author and investigative reporter at the scene.
Officers put her in the back of a police landrover and rushed her to Altnagelvin Hospital where she tragically died from her injuries.
Assistant Chief Constable Mark Hamilton said it likely violent dissident republican group the ‘New IRA’ murdered Ms McKee who was originally from north Belfast.
Saoradh claimed: “A Republican Volunteer attempted to defend people from the PSNI/RUC.
“Tragically a young journalist covering the events, Lyra McKee, was killed accidentally while standing behind armed Crown Force personnel and armoured vehicles.
“This outcome is heartbreaking and we extend our sincerest sympathy to the family, friends and loved ones of the deceased.”
Police have described her killing as a “terrorist incident” and have launched a murder inquiry in a bid to catch the gunman.
Here is the Saoradh statement in full:
“Last night, in the latest in a series of attacks, heavily armed Crown Forces were sent into Creggan to attack Republicans in.advance of upcoming Easter Rising Commemorations.
“The purpose of this incursion has been confirmed this morning by PSNI/RUC Commander Mark Hamilton. As per usual, nothing was found and this incursion was utterly futile and pointless.
“The Crown Forces have waged a campaign of oppression in Republican Derry, and the community has endured ongoing State Violence in the area, with deafening silence from the political establishment representatives in the area.
“Saoradh has not shied away from highlighting this, including attacks on our members. In doing so we have continually gave our analysis that this oppression would inevitably be met with resistance, as has historically been the case.
“The inevitable reaction to such an incursion was resistance from the youth of Creggan.
“The blame for last night lies squarely at the feet of the British Crown Forces, who sought to grab headlines and engineered confrontation with the community.
“During this attack on the community, a Republican Volunteer attempted to defend people from the PSNI/RUC.
“Tragically a young journalist covering the events, Lyra McKee, was killed accidentally while standing behind armed Crown Force personnel and armoured vehicles.
“This outcome is heartbreaking and we extend our sincerest sympathy to the family, friends and loved ones of the deceased.
“The Derry 1916 Commemoration Committee have opted to cancel this Easter Monday’s annual commemoration as a mark of respect for the tragic and accidental killing of Lyra McKee.”
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