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Russia Claims Pullback, U.S. and Ukraine Skeptical; Ukraine's Zelensky to Visit Mariupol on Day of Unity; U.S. Investigates Threat to Safety Inspector in Mexico; NYT: Three Substances Sometimes Used in Heart Treatments Found in Valieva Sample; $73 Million Settlement Reached with Remington Arms. Aired 4-4:30a ET

Aired February 16, 2022 - 04:00   ET

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

[04:00:00]

ISA SOARES, CNN ANCHOR: Hello and a very warm welcome to our viewers joining us in the United States and right around the world. I'm Isa Soares in London.

MICHAEL HOLMES, CNN ANCHOR: And I'm Michael Holmes in Lviv, Ukraine. Coming up on CNN NEWSROOM.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: To the citizens of Russia, you are not our enemy.

JEN PSAKI, WHITE HOUSE PRESS SECRETARY: We've seen this playbook before. Their history of false flag operations, of misinformation. We need to verify.

UNIDENTIFIED MALE: In this case we don't trust. We're certainly going to verify within the next several days whether he's going to withdraw forces.

(END VIDEO CLIP)

HOLMES: Military maneuvers. Ukraine marks a day of unity as Russia claims to pull back some troops from the border. We're live in Lviv, Kyiv and Moscow this hour.

SOARES: Plus, the Russian figure skater at the center of the Olympic doping scandal is outshined by new reports. All ahead to the Beijing Winter Games.

And calls for clarity as Prince Andrew settles out of court with no admission of liability. But Brits want to know who will pay up, the private or public purse?

ANNOUNCER: Live from London, this is CNN NEWSROOM with Isa Soares.

SOARES: Welcome to the show, everyone. It is Wednesday, February 16th. And we begin with a show of patriotism and defiance in Ukraine. Holding a national day of unity in the face of the looming threat over a Russian invasion. U.S. President Joe Biden says Moscow's claims that some of its troops have finished their military drills and are returning to their home bases but not been verified. And Russian troops remain in a threatening position.

Meanwhile, Ukraine says an investigation is underway into cyberattack that targeted the website of its military and two banks.

Well, CNN is covering every angle of the story as you'd expect we would. Alex Marquart is in Mariupol, Ukraine. Frederick Pleitgen is in Moscow. Our Melissa Bell is following the U.S./NATO talks in Brussels. And our Michael Holmes of course is in Lviv, Ukraine -- Michael.

SOARES: All right, Isa, thanks so much. The Russian defense ministry has just released new video which it says shows Russian military vehicles leaving Crimea after finishing up their military exercises. Russia said on Tuesday some of its troops were being sent back to their home bases after drills near the Ukraine border were over. The U.S., NATO and Ukraine say that would be an encouraging sign but they haven't seen evidence of a de-escalation so far.

(BEGIN VIDEO CLIP)

BIDEN: The United States and NATO are not a threat to Russia. Ukraine is not threatening Russia. Neither the U.S. or NATO have missiles in Ukraine. We do not, do not have plans to put them there as well. We're not targeting the people of Russia. We do not seek to destabilize Russia. To the citizens of Russia, you are not our enemy and I do not believe you want a bloody, destructive war against Ukraine.

(END VIDEO CLIP)

HOLMES: President Biden was optimistic about the chance for a diplomatic solution to the crisis but he also warned that Russia would pay a high price and face international condemnation if it, indeed, invades.

(BEGIN VIDEO CLIP)

BIDEN: Russia attacks Ukraine it will be a war of choice or a war without cause or a reason. I say these things not to provoke but to speak the truth because the truth matters. Accountability matters. If Russia does invade in the days and weeks ahead, the human cost for Ukraine will be immense. And the strategic cost for Russia will also be immense. The world will not forget that Russia chose needless death and destruction. Invading Ukraine will prove to be a self-inflicted wound.

(END VIDEO CLIP)

SOARES: Now the German Chancellor Olaf Scholz is the latest European leader to visit Moscow for talks with Vladimir Putin.

[04:05:00]

The Russian President called military moves by the West a direct and immediate threat to security for Russia. But he said he, too, does not want war.

(BEGIN VIDEO CLIP)

VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): Do we want it or not? Of course not. Our intention is to negotiate with our partners on the issues which we raise to resolve through diplomatic means.

(END VIDEO CLIP)

HOLMES: Now here in Ukraine, it is a day of international unity when crowds at the Olympic Stadium in Kyiv unfurled a giant Ukrainian flag to celebrate. Celebrated President Volodymyr Zelensky is scheduled to visit the coastal town or city of Mariupol meanwhile to mark this occasion.

Now CNN's Fred Pleitgen is live for us in Moscow this hour. But we begin in -- and Melissa Bell is in Brussels, Belgium. But let's begin with Alex Marquardt who is in Mariupol, Ukraine. A key city in all of this and the president coming. Alex, what are you expecting?

ALEX MARQUARDT, CNN SENIOR U.S. SECURITY CORRESPONDENT: Well, we are expecting, Michael, to have President Zelensky here on this day of national immunity. Of course, this comes two days after President Zelensky mockingly said that today was supposed to be the day of this Russian invasion and instead he decreed a day of unity. This is a particularly sensitive spot here, Michael. Because Mariupol is wedge between these two enclaves where Russia has been trying to encroach on Ukrainian territory.

We have Donetsk just down the coast around 15 miles here, where the Russian backed -- Russia has been backing separatists in their fight against the Ukrainians. And then we have Crimea which is not too far away right here on the Sea of Azov, which of course they occupied and annexed back in 2014.

And Michael, it is really in Crimea that we see this confusion over what Russia's intentions truly are. The Russians putting out video this morning that claims that they are pulling back their troops, they are pulling back their weaponry after exercises have taken place in Crimea. They say that they loaded up trains with troops, tanks, artillery. And that those are all going back to the mainland in Russia. They're crossing the Kurtz Bridge which they built after annexing Crimea. So, that is there evidence, they say that they are pulling back their troops.

But at the same time, Michael, we are seeing a consistent buildup. We have seen a consistent buildup of this third front, if you will, this southern front that Russia could use to invade Ukraine. We have seen troops going into Crimea. Over the past few days, we have seen the satellite imagery showing that fighter jets have been placed in Russia just across the waterways here. We have seen more satellite imagery showing attack and transport helicopters being based in Crimea.

So, you know, we're getting these mixed messages of both the draw down but at the same time the U.S. and others convinced that Russia does continue to build up. So, it remains very much to be seen what Russia's intentions truly are. But today here in Mariupol as in cities all across the country, we are expecting to see some kind of display in unity. As you mentioned, Michael, President Zelensky expected to visit here this port city of Mariupol later on this afternoon -- Michael.

SOARES: Yes, a very strategic city indeed. Alex Marquardt, appreciate that.

Let's switch our attention now to Brussels. Melissa Bell standing by there. Melissa, tell us about this NATO meeting. And also, what we know about NATO's positioning when it comes to its troops, where are they, what're they doing?

MELISSA BELL, CNN CORRESPONDENT: Well, we know that it's substantial, Michael, that 25 to 30 NATO allies according to sources here at NATO in Brussels have already committed, either already sent extra troops or committed resources to this buildup.

Now today's meeting is going to be, first of all, about briefing one another. Defense ministers will be briefing one another about what they've been hearing throughout this shuttle diplomacy. We've seen this last few weeks where so many leaders, foreign ministers, defense ministers have been shuffling to and from Moscow, Kyiv having conversations with their Russian and Ukrainian counterparts. Each is going to be briefing the other about the very latest intelligence they have and no doubt the American defense secretary really taking a lead role in saying what the latest American intelligence is.

Because of course, the big question at this stage, Michael, is whether those Russian claims and that troop withdrawal has begun are being substantiated by what NATO allies are seeing through their intelligence. And that's a key question. We heard from the Secretary General of NATO, Jon Stoltenberg, saying yesterday that he hopes the diplomacy still had a chance but they had yet to see any tangible signs of de-escalation.

[04:10:00]

So, that question very much at the heart of today's discussion. First of all, that sharing of intelligence on the very latest in terms of Russian capabilities on the ground. But also, then perhaps much more substantially, Michael, even as the world seeks peace this is also a meeting about preparing for war. What NATO allies are going to be looking at today are the specifics of what those extra resources that have either been pledged or already moved to Europe and NATO's eastern flank. How the resources will be organized, what will happen should Russia invade.

HOLMES: All right. Melissa, thanks for the update there. Melissa Bell in Brussels.

Let's now go to Moscow. That's where we find our Fred Pleitgen standing by. Still the Russian leadership keeps talking about diplomacy, which is a good thing, of course. This troop withdrawal, small as it is. Bring us up to date on developments there. FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Hi there,

Michael. And certainly, the Russians are making a big deal out of the troop withdrawal that they say that they've conducted over that Crimean bridge -- the one that Alex was talking about. They put out video earlier today and also put also newswires about that as well.

But of course, it is no secret that there are still a substantial amount of Russian troops in and around -- or they're around the area of Ukraine and then also you have those big drills that are also taking place in Belarus as well. And the Russians have said that their forces would also withdraw from there. But nevertheless, obviously the U.S. still says that it is a very dangerous situation that's going on near the Ukrainian border and that the invasion could happen at any time even though the Russians say there are no plans for that.

It was very interesting to see yesterday the talks between Olaf Scholz and Russian President Vladimir Putin. Well, once again the Russian President has said that so far, the answers that the Russians have gotten from the U.S. and from NATO as well, to the security demands that they have put forward, which of course, involved among other things the withdrawal of NATO forces from Eastern European countries. But also guarantee that Ukraine would never join NATO as well. But so far, they feel that the answers they've gotten have not been satisfactory. But they do feel that there are still grounds to continue those talks.

Olaf Scholz, the German Chancellor, for his part says that the West needed to see de-escalation. And in a press conference after the meeting with Vladimir Putin, I asked him on what issues he pressured the Russian president and here's what he had to say.

(BEGIN VIDEO CLIP)

OLAF SCHOLZ, GERMAN CHANCELLOR: We have a very clear strategy and this is first saying that if there would be a military aggression against Ukraine, that this would have hard consequences and we are well prepared to decide united on the necessary sanctions.

(END VIDEO CLIP)

PLEITGEN: So, the German Chancellor Olaf Scholz speaking after he met Vladimir Putin, in the Kremlin. The Russians of course, continue to say they want to have a broader discussion about security in Europe and they say that they want their demands to be spoken of. They want that to be a longer-term discussion. So, it certainly looks as though the key issue at hand is not one that will go away any time soon -- Michael.

HOLMES: Yes, indeed. Our Fred Pleitgen there in Moscow. Melissa Bell in Brussels, Alex Marquardt in the key strategic city of Mariupol, in Ukraine. Thanks to all of you for the great reporting. That will do it for me for the moment in Lviv, in western Ukraine. For now, let's go back to Isa Soares in London -- Isa.

SOARES: Thank you very much, Michael, very important context. We'll return to Michael in about 20 minutes or so. The Ukraine border crisis could send U.S. inflation to a rate it

hasn't seen in four decades. A new analysis from consulting firm RSM shared exclusively with CNN found that if the standoff drives oil prices to about $110 a barrel, U.S. inflation would top 10 percent on a year-over-year basis. RSM's chief economist says gasoline as well as home heating costs would be more expensive in the immediate aftermath of an invasion. U.S. oil prices hit $95 a barrel on Monday. But crude retreated on Tuesday falling below $92 after Russian claims of -- as you just heard there -- a troop pullback.

Well, Wall Street also welcomed those reports, those claims from Russia with the markets sharply higher, as you saw there, on Tuesday. The Dow was up 422 points ending just over 1 percent higher. The S&P and Nasdaq also saw some significant gains, particularly the Nasdaq. Quite a run around from what we saw the previous day, up 2.5 percent. I'm hoping of course that momentum should carry on into today and it is expected to at least with all forces really -- expected to open higher when trading kicks off this Wednesday.

In Washington Senate Republicans have boycotted a vote on Federal Reserve nominees, halting the entire process and putting other key nominations on hold. Republicans are opposed to the U.S. president's pick for the feds top bank regulator. Because she had previously called for a crackdown on lending to fossil fuel companies.

[04:15:00]

But Sarah Bloom Raskin has since said banks choose their borrowers and not the Fed. The White House is blasting Republicans for the boycott. Have a listen.

(BEGIN VIDEO CLIP)

PSAKI: And that's totally irresponsible in our view. It's never been more important to have confirmed leadership at the Fed to help continue our recovery and fight inflation. And obviously, they have a unique role to play, an important and vital role to play as it relates to inflation. And I think Democrats and Republicans have agreed on that for decades. So, Republicans are out there saying inflation's a problem. It's a huge issue. We agree and then they're not even bothering to show up to even vote against these nominees to the Federal Reserve. What message is that sending to the American public?

(END VIDEO CLIP)

SOARES: But if the two sides don't reach an agreement, there's not a lot Democrats can do. They either have to get 60 votes in the Senate which means 10 from Republicans or they have to change the rules on a party line vote, known of course as the new year option.

Americans could soon see avocado prices spike. You may have a tough time finding them at the grocery store now that the U.S. has suspended avocado imports from Mexico. It comes after a death threat made against a U.S. safety inspector, which is now under investigation. CNN's Matt Rivers has all of the details for you from Mexico City.

(BEGIN VIDEOTAPE)

MATT RIVERS, CNN CORRESPONDENT: Well, there is one state here in Mexico that is currently legally allowed to export avocados to the United States, and that is the state of Michoacan. And we know that since the weekend, the United States has temporarily suspended Michoacan's avocado export license. And now we're getting a little bit more information as to why that decision was taken.

So according to a U.S. official with direct knowledge of the matter, a USDA safety inspector who was working here in Mexico, whose job was to make sure that these shipments of avocados bound for the United States met U.S. safety standards. One of those inspectors working in that capacity here received what this official called a credible death threat after that inspector did not allow a shipment of avocados to go from the state of Michoacan up north to the United States.

Now this official added that it's not yet known who made this death threat, and that U.S. embassy personnel from here in Mexico City have already been dispatched to the state of Michoacan to try and get to the bottom of this and figure out how to get these inspections back on track.

But this official added, when we asked this official, well, how long will this temporary suspension be in place? The official said, look, there cannot be a security situation where the United States feels like these USDA safety inspectors can't do their jobs without fearing for their lives. With this official saying that this temporary suspension won't be lifted until the United States is comfortable with the security situation for these inspectors working here in Mexico.

This is going to have a big impact, depending on how long all of this lasts, economically speaking. There's hundreds of thousands of jobs that rely on the export industry of these avocados here in Mexico and also in the United States.

Consumers are going to see, perhaps, problems with avocado supply, given that Mexico is far and away the largest exporter of avocados to the U.S. market. So, consumers might have trouble finding avocados in the days and weeks ahead. And if they do find those avocados, the price of the avocados that they find may very well go up, according to multiple analysts that CNN has spoken to.

Matt Rivers, CNN, Mexico City.

(END VIDEOTAPE)

SOARES: New information shows three different substances sometimes used to treat heart conditions were found in testing sample for Russia figure skater Kamila Valieva back in December. The 15-year-old is at the center of Russia's latest Olympic doping scandal but was cleared to compete, if you remember, in solo events. "The New York Times" reports that on top of the heart drug, trimetazidine, the Court of arbitration says Hypoxen and L-Carnitine were also found. Now those two substances are not banned.

Valieva came in at the top of the women single skating short program on Tuesday and is the favorite to win another gold medal this week.

Steven Jiang joins me now from Beijing with more. And Steven, first of all, look, she skated beautifully yesterday and was incredibly emotional. You can imagine how stressful this has been for her. But talk to us about the heart conditions, you know, the heart medications found in her sample and how actually the news is playing out at the Olympics among other athletes.

STEVEN JIANG, CNN BEIJING BUREAU CHIEF: Well, Isa, at least for the Olympians who are here in Beijing, they seem to be trying to rise above the fray. Mostly declining to comment on the specifics of the case while focusing on their own games and emphasizing the importance of having a level playing field.

[04:20:00]

Now interestingly the Chinese state media has mostly ignored the story and their TV announcers actually made no mention of the doping allegations against her when Valieva competed on Tuesday night. But of course, "the New York Times" revelation that she tested positive for three substances is really throwing even more doubts over the various claims reportedly made by adults around her. Including how one substance was used by her grandfather, another used by her mother to treat her heart condition. It's really painting this increasingly damning picture on her entourage and further convincing a lot of experts not to mention critics of her being part of Russia's long standing systemic doping problem.

And here is what they head of the U.S. Anti-Doping Agency told us just a few hours ago.

(BEGIN VIDEO CLIP)

TRAVIS TYGART, CEO, U.S. ANTI-DOPING AGENCY: Having these three, you know, two declared and one obviously testing positive that wasn't declared, the one that was prohibited, just raises significant red flags and alarm bells. That there is someone behind whether it is a coach, doctor, the state that's helping this young athlete and teaching this young athlete to use these substances in order ultimately to increase and enhance performance.

(END VIDEO CLIP)

JIANG: Now Tygart also told us that even though only one of the three substances is banned and the other two have long been on the radar of anti-doping agencies around the world for their performance enhancing capabilities. He also pointed out the amount of the banned substance known as TMZ found in her body was more than just a trace level. So, all of this, according to him, is consistent with an intentional use instead of just an accidental intake -- Isa.

SOARES: Still lots and lots of questions remain. Steven Jiang in Beijing for us this hour. Thanks very much, Steven.

Now it was an unspeakable crime at an elementary school. The massacre at Sandy Hook left 26 families devastated. But some have finally won a legal battle. Details just ahead.

And a massive operation to combat human trafficking leads to nearly 500 arrests in California. How authorities are attacking the problem, next.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We can't arrest our way out of this problem. We can't legislate our way out of this problem. We need communities to stand up. We need people to enter this fight, understand what's happening. Reclaim our streets. Reclaim our neighborhoods and reclaim our schools. This is on us.

(END VIDEO CLIP)

[04:25:00]

(COMMERCIAL BREAK)

SOARES: The massacre of Sandy Hook Elementary School in 2012 stands out. Even in a country where mass shootings have become painfully frequent, 20 children and 6 adults were killed. And though efforts to pass gun control measures have failed, Erica Hill reports that now families of 9 of the victims have won a hard-fought legal battle.

(BEGIN VIDEOTAPE)

MARK BARDEN, CO-FOUNDER, SANDY HOOK PROMISE: We have these moments where there's any kind of a victory or forward progress that you want to celebrate. And then it just kind of hit you like a gut punch that, you know, her Daniel is still gone. It's a strange psychological dynamic --

UNIDENTIFIED FEMALE: Yes.

BARDEN: -- that continues to beat the crap out of us.

UNIDENTIFIED MALE: (INAUDIBLE) Sandy Hook School called us indicating she thinks there's someone shooting in the building.

ERICA HILL, CNN NATIONAL CORRESPONDENT (voice-over): Daniel Barden was just seven years old when he was murdered at Sandy Hook Elementary, one of 20 children and six adults killed that day in 2012.

GOV. DANNEL MALLOY (D-CT): What has happened and what has transpired at that school building will leave a mark on this community and every family impacted.

HILL (voice-over): Overnight, memorials blanketed this small Connecticut town. Images of angels, messages of strength for 26 families now faced with an unimaginable horror.

VERONICA DE LA ROSA, LOST HER SON NOAH AT SANDY HOOK SHOOTING: One moment we had this dazzling, energetic six-year-old little boy and the next all we had left were echoes of the past. Every day's a realization that he should be here yet he's not. HILL (voice-over): The shooter that day, a deeply troubled 20-year-old killed his mother before opening fire at the school with a Bushmaster semi-automatic AR-15 style rifle. Two years later, the families of nine victims filed a lawsuit against the makers of that gun, Bushmaster and its parent company Remington. A move seen widely as an uphill battle given the federal protections that shield gun makers from most legal liability in wrongful death cases brought by family members.

NICOLE HOCKLEY, CO-FOUNDER, SAND HOOK PROMISE: This victory, this landmark historic victory sends a forceful and compelling message to manufacturers into the insurance and banking industries that support them. This is a high-risk market. It is not profitable and you will be held accountable.

HILL (voice-over): That historic victory, a $73 million settlement with Remington at its insures which also allows the families to make thousands of internal company documents public according to the plaintiffs' attorneys.

JACKIE BARDEN, LOST HER SON DANIEL IN SANDY HOOK SHOOTING: We wanted to make sure that they found everything that had been going on behind closed doors.

JEFFREY TOOBIN, CNN CHIEF LEGAL ANALYST: This settlement is a tremendous risk for gun manufacturers, because it allows the plaintiffs and the public to lift the curtain and see how guns are marketed and to whom and why. And how much is spent on that.

HILL (voice-over): While the settlement is a clear victory, the families insist it is not justice.

M. BARDEN: It's very emotional. It's just connected to our little Daniel. It's the whole reason we're here. And it's because he was murdered as a direct outcome of some of these -- of some of what was going on.

FRANCINE WHEELER, LOST HER SON BENJAMIN IN SANDY HOOK SHOOTING: True justice would be our 15-year-old, healthy and standing next to us right now. But Ben, he will never be 15, he will be six forever, because he is gone forever.

HILL: CNN has reached out to Remington and its insurers for comment, we have not heard back.

In Trumbull, Connecticut, I'm Erica Hill, CNN.

(END VIDEOTAPE)

SOARES: A New York girl reported missing 2019 has been found alive.

[04:30:00]