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Putin Holds Media Conference; Sony Cancels "The Interview" Release; Washington Split on "New Approach" to Cuba; Boston Marathon Bombing Suspect in Court

Aired December 18, 2014 - 10:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: He was very much trying to make that comparison with the United States Defense expenditure.

He was also asked some quite tough questions. One of them look, isn't this economic crisis in Russia at the moment that has seen the ruble plunge in value against the dollar all to do with Crimea. You may remember Russia annexed Crimea, part of Ukraine back in March. It's a thing that provoked international sanctions from the United States and from the European Union.

But Vladimir Putin categorically denied that the sanctions and the crisis had anything to do with Crimea, basically restating this rhetoric that he's been coming up with all the time; that the sanctions are all about trying to limit Russia which was emerging as a power and as a threat to the west -- something that he's been, you know, basically banging on about for several months now.

This kind of rhetoric Carol has gone down very well in the past with the Russian public. It's made Vladimir Putin immensely popular. He popularity rating is somewhere in the region of 85 percent.

But in this new environment where people are actually feeling economic pain, it's difficult to see how he's going to manage to sustain those popularity ratings.

CAROL COSTELLO, CNN ANCHOR: Well, you know, the polls in Russia, do they also show that people still widely support Putin's actions in Crimea?

CHANCE: They do. I mean as I was saying, his approval ratings are still sky high. I mean President Obama would kill to have approval ratings like Vladimir Putin, I can tell you. But, you know, the question is, are they going to be able to be kept up if Russia -- as Russia slowly and gradually and continually feels this economic pain. Interest rates went up 6.5 percent to 17 percent a couple of days ago. Imagine that if you've got a mortgage or you're paying for a car, what kind of impact that's going to have on your life. How long are Russians going to support their leader in that kind of economic environment? That's the question that's being asked right now.

COSTELLO: All right. Matthew Chance reporting live for us from Moscow. Thanks so much.

And good morning. I'm Carol Costello. Thank you so much for joining me.

Moviegoers hoping to catch "The Interview" on Christmas day will have to buy tickets to a different flick. That's because Sony is pulling the plug on the release of the comedy after a terror threat by cyber hackers. U.S. officials now believe North Korea is behind this crippling attack.

Some people are questioning whether Sony made the right decision by bowing to those who committed this cybercrime. Let's talk about all of this with CNN senior media correspondent and host of "RELIABLE SOURCES" Brian Stelter. We're also joined by CNN's Laurie Segall -- a tech wizard herself. Thanks to both of you for joining for us.

I must say, Brian, I was surprised that Sony made the decision to pull the film.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: To go ahead and pull it. I think they had little choice because so many of these major theater owners all lined up and said, "Sorry, we're not putting this on our screens on Christmas."

I actually talked to Mark Cuban yesterday. And he actually co-owns the theater in New York where the premier was supposed to be held tonight. He said it was pretty simple about why they decided to cancel the premier and then the next day many other theaters also pulled out. Here is what he said.

(BEGIN VIDEO CLIP)

STELTER: Why didn't "The Interview" premier at Landmark?

MARK CUBAN, BUSINESSMAN: We just discussed it last night -- Ted Mundorff, Todd Wagner and I -- the three principals and the downside was too dramatic versus the upside. You can't go and enjoy a movie when in the back of your mind you're concerned that something is going to happen. And it just wasn't worth the risk.

(END VIDEO CLIP)

STELTER: As he said, just wasn't worth the risk.

COSTELLO: Yes, but Mr. Tough guy, Mark Cuban, look what the "New York Post" said this morning. "Kim Jong-Un Won" and a lot of Hollywood actors and comedians feel the exact same way. As well as some of our lawmakers -- right?

STELTER: That's right. And he said he wants to uphold freedom of expression -- in this case just too tough a risk. I understand this was a real conundrum for the theater owners and Sony. But it's hard to find anyone this morning who's defending the decision. A lot of folks in Hollywood are really concerned this sets a terrible precedent.

What's going to happen in the future if there's another controversial film like this, and there will be.

COSTELLO: Right. Let's listen to comedian, Chris Rock. Listen to him.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Were you surprised the normally courageous, fair- minded citizens of Hollywood didn't stand up and stand with their brothers and Sony?

CHRIS ROCK, COMEDIAN: This whole thing is just scary, man. It's like -- you know, your e-mails and it's your private stuff. The whole town is scared. Everybody's got to be scared. No one knows what -- you know.

UNIDENTIFIED MALE: Nobody knows what to do.

ROCK: Nobody knows what to do.

(END VIDEO CLIP)

COSTELLO: Including the U.S. government. And you know, maybe that's not fair, but let's put it this way. There's this thing in North Korea, Laurie, Bureau 121. It's made up of these cyber warriors. And apparently they've been plotting this kind of attack on Sony for quite some time. It's scary to know that North Korea, number one, is capable of that and that they have these cyber warriors, not only stationed in North Korea, but in China and Russia as well.

LAURIE SEGALL, CNN TECH CORRESPONDENT: Let me give you a little bit of background on them. I actually just got off the phone with a security analyst who is very familiar with Sony and very familiar who has been following this group since 2007. They've been around since the early 90s, but they've gotten very, very sophisticated.

And what he said to me is, "Laurie, I mean this is their army." They start training these guys at 16 years old. This is a very well-funded group. And I also, you know -- he said we underestimated North Korea's capabilities because it seems as though, wow, now they're capable of doing this. He said, no, they've been capable of doing this kind of attack for a very long time. But this is the first time they've had the motivation.

And what's very scary about this kind of thing is the motivation here wasn't based on wanting to steal money. It was based on them looking humiliated by a film coming out. This is the first time, against the United States, that we see this could be looked at as an act of cyber terrorism. There are talks about that now.

COSTELLO: The other thing going back to Sony's decision for just a minute, there's another movie being made, not by Sony, but by another production company about North Korea. This was a serious documentary starring Steve Carell. They've already ditched the project. It's no more.

STELTER: They've decided not to do it. I think that's why Steven Carell tweeted yesterday, rather cryptically, "This is a sad day for freedom of expression." I think he was referring to his own project as well as the Seth Rogen/James Franco project, "The Interview". COSTELLO: So Laurie, I'll ask you because you've talked to some

hackers that were not so savory -- right, unsavory hackers.

SEGALL: Sure.

COSTELLO: What did they tell you about how the United States can stop this Bureau 121?

SEGALL: You know what's so scary, right as I got off the phone with this security researcher he gave me this line. And he said it's not only that these guys were so sophisticated. All of these tactics are available to buy on the dark web and all this type of malware that they're able to get access to. He said that it's companies that just aren't sophisticated here in the United States and can't really take a hack like that. He said it's like walking through a neighborhood where people don't have locks on the doors. That's how he described it.

It's going to be up to the United States. It's going to be up to every single major corporation that we look at and we think they are rock solid with security. Well, guess what, they're not. And this is very -- a good indication of just how unsafe --

COSTELLO: I think it goes beyond just the companies providing security now. I mean this is a foreign country. There was a terror threat issued, right? If they're threatening a 9/11-style attack, that's a terror attack. The government is going to have to somehow get involved with the security of these companies or at least find a way to protect these companies.

STELTER: There are steps the U.S. can take. And last night we heard the National Security Council say that they have a wide range of options they're considering. There are further sanctions for example that could be implemented on North Korea.

What you're saying Laure reminds me of what a Sony executive said to me a couple of weeks ago. He said "Brian, tell your boss to tell his boss to spend more on IT, to further increase security of your computer systems. It's not just Sony, not just media companies. It's any company that could be treated like this.

This is essentially extortion toward the end because they were saying, if you show the film, you're going to be in danger. You know that is something that Sony eventually, sorry to say, capitulated to.

COSTELLO: That's right.

Brian Stelter, Laurie Segall, thanks as always. I appreciate it.

STELTER: Thanks.

COSTELLO: I'm back in a minute.

(COMMERCIAL BREAK)

COSTELLO: Former Cuban prisoner Alan Gross is waking up at home this morning following his return to the United States. But for politicians in Washington this is no time to rest. Republican Senator Marco Rubio slammed President Obama's decision to ease restrictions on Cuba citing its oppressive regime.

(BEGIN VIDEO CLIP)

SEN. MARCO RUBIO (R), FLORIDA: The mistake has to do with the unilateral concession to the Cuban government. Let's run through the list of: full diplomatic relations that means the recognition of the Cuban government's legitimacy, opening up the banking sector, more telecommunication, higher remittances -- a whole series of things that truly undermine the sanctions regime that's in place against the Cuban government for being a tyranny.

(END VIDEO CLIP)

COSTELLO: But House Democratic Representative Jim McGovern saw a distinctly different side to the news, welcoming new and open lines of communications with the Castro regime.

(BEGIN VIDEO CLIP)

REP. JIM MCGOVERN (D), MASSACHUSETTS: For the last 50-plus years, this policy that we've had toward Cuba has been a miserable failure. It's a relic from the Cold War. I'm glad the President did what he did yesterday. I wish it happened decades ago. And I think for those who are concerned about human rights, I think the more engagement between the United States and Cuba the more difficult it will be for the Cuban government to be repressive.

(END VIDEO CLIP)

COSTELLO: Is this a monumental mistake on the part of President Obama or an opportunity for real change? Let's talk about this with Dennis Hays. Dennis is the former Cuban affairs coordinator at the State Department. Welcome, sir.

DENNIS HAYS, FORMER CUBAN COORDINATOR AT THE STATE DEPARTMENT: Thank you Carol. Good to be here.

COSTELLO: So which is it? Is it a colossal mistake or is it a move for the better?

HAYS: I fall on the side of this is a mistake. It's a mistake because again we underestimate our ability to influence events in the world. Cuba at this point desperately needs additional support and help. The Venezuelan oil that they've been getting for many years is drying up. So they need some kind of new injection of funds and resources, and I think this is what we're providing. The problem is not that you don't make a deal, but the issue is if you're going to make deal, get something for what you're giving up. And I just don't see that having happened.

COSTELLO: You think the United States is getting zero, zilch, nothing? HAYS: Well, again, I mean this is a long-standing issue over many

decades. And the secret of all this, of course, is that the Cubans always have had the ability to lift the embargo. All they had to do was provide a more democratic structure for their people and stop supporting terrorism worldwide. For 50 years they've had that.

Now we're in a situation where, if you look back when President Obama was a candidate. He said if the Cubans take steps to democratize, we will take steps to normalize relations. What's happened, of course, is we have taken many steps here towards normalization, but the Cubans have not taken any steps towards democratization.

COSTELLO: What about the sentiment that the President expressed that Fidel Castro is 88 years old. He's very frail. He really doesn't much to do with the running of the country anymore. His brother Raul is elderly as well. And soon both men will be out of power and a new regime will step up. And this will give the United States a chance to interact with that new regime and maybe effect some good change?

HAYS: Those of us who have dealt with Cuba over time know that that issue of the biological solution has been out there for a very long time. It hasn't happened yet. It will happen some day. But let's get to there first.

I think what's important is that we send a clear message that we believe our neighbors in Cuba deserve the same sorts of freedoms and liberties that we do. That will help them continue to be a great nation and to produce the sort of economy that can then be a good partner form the United States. Being a partner with a bankrupt dictatorship is not a good deal for the United States.

COSTELLO: Well, some might argue that, why should the United States waste its energy on some aging despots when you have North Korea out there and they just successfully waged a cyber attack on the United States and won. Shouldn't the United States be more concerned about North Korea? Why should it be concerned about Cuba anymore?

HAYS: I think we need to be concerned about all these countries. Don't forget that this year there was a ship that was stopped that had 240 tons of armor and military weapons that was being shipped from Cuba to North Korea. There are connections. Cuba is on the list of terrorist countries and it's there for a reason.

And again, this is the sort of thing that the government of Cuba could change, could stop doing these things and I think it would lead to a much better situation for all concerned.

COSTELLO: All right. Dennis Hays, thanks for your insight. I appreciate it.

HAYS: Thank you.

COSTELLO: I'm back in a minute.

(COMMERCIAL BREAK)

COSTELLO: President Obama is thanking someone who played a critical role in the U.S.-Cuba deal. That would be Pope Francis.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I want to thank his Holiness, Pope Francis, whose moral example shows us the importance of pursuing the world as it should be rather than simply settling for the world as it is.

(END VIDEO CLIP)

COSTELLO: This summer Pope Francis made a personal appeal to President Obama and Cuban leaders and then a couple months later the Vatican hosted talks between the United States and Cuban delegations.

Joining me now to talk about this from Rome, CNN Vatican correspondent Delia Gallagher. Hi, Delia.

DELIA GALLAGHER, CNN VATICAN CORRESPONDENT: Hello to you, Carol.

COSTELLO: Hi, I'm glad you're here. Why was this so important to the Pope?

GALLAGHER: Well, you know, he said this morning, Carol, to a group of ambassadors that the whole reason to get involved in diplomacy is peace. It's to bring people together, to help build bridges. It's been the Vatican line for many years that without dialogue there is no peace, there is no better world.

So Pope Francis's rationale in all of this is something similar to what we saw this summer when he invited the delegates from Israel and the Palestinian territories to the Vatican. It's to bring parties who are not speaking to the table because only in that way, according to the Pope, according to the Vatican line, can there be any chance for a resolution to any of the conflicts that face the individual countries.

COSTELLO: Is it customary for popes to get so involved?

GALLAGHER: Oh, yes, they've been doing it for centuries. I mean it's very usual sort of thing. In fact, they're often accused of meddling, of course, in political affairs. I mean we only need to look back as far as John Paul II to see what can happen when a pope with a certain amount of moral gravitas comes to the table with political parties.

I mean many people attribute the breakup of the former Soviet bloc to some of the efforts of John Paul II, certainly also in other communist dictatorships John Paul II had a role when he went to those countries.

Vatican thinking is always long term. One doesn't expect immediate results. Certainly I think Pope Francis is in that line of popes who don't hesitate to get involved with political issues that they feel cross the boundaries of what are religious issues essentially -- ethics and justice for people living in political power.

COSTELLO: Could this have happened without the Pope? I know officials say the Pope acted as a guarantor. I'm not sure what that means. Did you hear me, Delia? I don't think Delia can hear me. All right. We lost Delia.

But there you have it Pope Francis played a big part in the normalizing of relations between the United States and Cuba.

Still to come in the NEWSROOM, the Boston Marathon bombing suspect makes his first appearance in court in nearly a year and a half. Security extremely tight around the federal courthouse in Boston. We'll take you to Boston next.

(COMMERCIAL BREAK)

COSTELLO: He's been locked up in a cell at a medical prison 40 miles outside of Boston. But this morning the Boston Marathon bombing suspect Dzhokhar Tsarnaev is in federal court for the first time in a year. Sirens rang out as police transported him to the courthouse a short time. He's at a final hearing before his trial is set to get under way on January 5th. Prosecutors specifically requested he attend. Even though the trial is just weeks away the defense wants it moved out of Boston and postponed.

Deborah Feyerick is following this story for us. She's at the courthouse in Boston. She's on the phone. Tell us more, Deborah.

DEBORAH FEYERICK, CNN CORRESPONDENT: Well Carol, one of the reasons that prosecutors wanted him to appear in court is they wanted to make sure the judge was able to ask him whether he was in fact pleased with his defense, his lawyers, whether he was up to date on the information. He didn't say much but to each of those questions he replied "yes, sir".

Now he looked a little bit different than he did during his first appearance which was 17 months ago. Since then he's been held virtually in solitary confinement. His hair was very disheveled. He has a short beard now which he twirled between in his fingers several times during the course of the 25 minute hearing. He was wearing a black sweater, gray slacks, white shirt.

The judge took up matters about expert testimony. Apparently there's an expert who has been questioning his family members, his friends in Chechnya in Dagestan where he's from. And the prosecutors do not want this person to be able to testify and provide what they call opinion as to who may have been in control because their defense is that Tamerlan, his older brother, was the one who was really sort of leading the charge in terms of what was done during the Marathon bombing.

Carol, one really interesting outburst and that happened by a Russian woman who was inside the courtroom. As he was being cuffed and led out of the courtroom, she cried out that he has supporters and she called on the government to stop killing innocent boys. It turns out that she is the mother-in-law of a friend, Ibrahim Todashev, Carol who you may remember was implicated in a triple drug murder while he was apparently or allegedly swearing out a confession. The FBI says that he lunged at them and they shot him several times. The mother-in-law of Ibragim Todashev now saying that in fact the FBI killed him to silence him because they knew, that in fact, he would testify as a friendly witness for Dzhokhar Tsarnaev. So she was very vocal. But again, that was the sort of action going on inside the courtroom.

Dzhokhar, meanwhile, looking sort of very relaxed as all this was playing out -- Carol.

COSTELLO: Didn't this woman also have an outburst outside the courthouse?

FEYERICK: She gave a very impassioned statement to members of the media who had set up a microphone stand here. And really said -- you know, I asked her point-blank. I said are you alleging the FBI shot your son-in-law to keep him quiet? She said, exactly, because she knew -- she knows he wasn't involved in the murder and she says that her son-in-law would have been able to testify that Dzhokhar and his brother Tamerlan, neither of them were allegedly involved in the bombing of which Dzhokhar Tsarnaev is now accused. His brother Tamerlan, of course, having been shot dead.

COSTELLO: I think that --

(CROSSTALK)

COSTELLO: I think Deborah, we have some of the drama that happened outside of the courtroom from this Russian woman that you're talking about. Let's listen.

(BEGIN VIDEO CLIP)

ELENA TEYER, MOTHER-IN-LAW OF IBRAGIM TODASHEV: They lie about how they kill my son-in-law. They shot him three times in the back, but they were stating in the reports for Mr. McFarland, FBI agent, he said that my son-in-law was trying to attack him and he did it twice. He shot him first time when he was trying to attack him. And he did it twice. He shot him first time when he was trying to attack him. And then he still stood up and keep walking. He shot him another three times, but he did not explain why my son-in-law have three bullets in the back and how did he got shot on top of his head.

He died by (inaudible) because we did not stay quiet. We was requesting for reports. We was asking for medical exam reports and we were asking for ten months. And all this time all my family had been harassed by FBI.

When I was active duty army until April this year, they were coming to my command staff. They were saying I'm planning to buy a gun and shoot FBI agents and their family in revenge. They said I'm going to be under official investigation for this point. They flag me. Basically they froze my career in the army.

Luckily for me and sadly for them, I got medical in April. So now they can't destroy my career. I can come here freely and speak to all of you. That's why I'm here. UNIDENTIFIED MALE: Can you say what you said in court?

TEYER: I said in court --

(END VIDEO CLIP)

COSTELLO: All right. You can hear a little bit of that drama. So Deborah, the Justice Department, they investigated the FBI's actions and the FBI was cleared, am I right?

FEYERICK: Yes, that's exactly right. They deemed that the shooting was in fact justified. Clearly her daughter is married to the man who was shot and killed. She was very passionate. I asked her if she did show her veterans' credentials. She was naturalized as a U.S. citizen after she joined the army in 2009. She was here speaking on his behalf and telling Dzhokhar that he's got supporters out there, keep fighting.

COSTELLO: All right. Deborah Feyerick reporting live from Boston -- thanks so much.

Thank you for joining me today. I'm Carol Costello.

"@ THIS HOUR WITH BERMAN AND MICHAELA" starts now.