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White House: Biden Agrees "In Principle" To Putin Summit; Russia And Belarus Extend Military Drills; Ukraine's Economy Takes A Hit Amid Fears Of Invasion; Britain's Queen Elizabeth Tests Positive For COVID-19; Hong Kong Struggling To Contain Fifth Wave Of Virus; Biden And Putin Agree " In Principle" To Ukraine Summit; Ukrainian Civilians Training For Potential Russian Invasion; Winter Games Set New Records and Saw Historic Moments; Police Clear Protest Zones, Make Nearly 200 Arrests. Aired 1-2a ET
Aired February 21, 2022 - 01:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[01:00:19]
MICHAEL HOLMES, CNN ANCHOR: Hello, I'm Michael Holmes coming to you live from Ukraine. New Intel adding to U.S. fears. Russia is waiting for military action, and new satellite images seem to confirm just that.
LYNDA KINKADE, CNN ANCHOR: And hello, I'm Lynda Kinkade live at CNN's world headquarters in Atlanta. Concerning the U.K., Britain's Queen Elizabeth testing positive for COVID as she celebrates her 70th year on the throne.
UNIDENTIFIED MALE: World leaders in a race against time to stave off war in Ukraine, we have just learned that the U.S. President Joe Biden has agreed in principle to a summit with the Russian President Vladimir Putin. But the White House says that will only go forward if Russia does not further invade Ukraine. Now the meeting was proposed by the French President Emmanuel Macron. According to his office, it is the latest in the diplomatic efforts to deescalate tensions between Russia and Ukraine, but it comes as new satellite images show increased activity among Russian forces masked near Ukraine's north eastern border.
And the Belarusian defense ministry now says joint military drills that have been held between Russia and Belarus they were supposed to end on Sunday. Well, now they've been extended. And we are learning that the U.S. had intelligence indicating Russian commanders have received orders to proceed with an attack on Ukraine, though important to say, it is not clear when, that's according to several officials who spoke to CNN.
Meanwhile, Ukraine says this video shows pro-Russian separatists launching fire against their own territory in an attempt to falsely accuse Ukraine's armed forces of an attack. CNN's Arlette Saenz is at the White House with more details on that possible meeting between Mr. Biden and Mr. Putin. ARLETTE SAENZ, CNN WHITE HOUSE CORRESPONDENT: The White House says President Biden has agreed in principle to a summit with Russian President Vladimir Putin but it comes with one major caveat, it will only be held if Russia does not invade Ukraine. Now this proposed summit was brokered by French President Emmanuel Macron, who spoke with President Biden earlier on Sunday for 15 minutes, and it was later confirmed by White House Press Secretary Jen Psaki, who said Secretary of State Antony Blinken and his counterpart Russian Foreign Minister Sergei Lavrov would discuss the parameters of such a summit when they meet on February 24.
Psaki added in a statement saying, "President Biden accepted in principle a meeting with President Putin following that engagement, again, if an invasion hasn't happened. We are always ready for diplomacy." She said, "We are also ready to impose swift and severe consequences should Russia instead choose war. And currently, Russia appears to be continuing preparations for a full scale assault on Ukraine very soon."
The White House has long said that they are open to President Biden engaging with President Putin when it would be useful and if it could help avoid a war between Russia and Ukraine. But the administration has also been clear-eyed about Russia's intentions in recent days stepping up their warnings about Russia's ability to attack Ukraine, including President Biden himself saying that he is convinced Putin has made that decision to launch an invasion.
So while this proposal of a possible summit could mark a major breakthrough in those diplomatic talks, the administration is still being very clear-eyed and wary of Russia's intentions, as they have seen these military buildups around the border of Ukraine. But they have long insisted that they think that there is a diplomatic path available to avert such a crisis, even if Russia is making some of these moves that suggests an attack could be imminent.
Arlette Saenz, CNN, the White House.
HOLMES: Now while we wait for more details on that potential summit between the U.S. and Russian President, CNN Contributor Jill Dougherty is in Moscow following Russia's decision to extend those military drills in Belarus.
JILL DOUGHERTY, CNN CONTRIBUTOR, RUSSIAN AFFAIRS: From Moscow, the most significant military development is that Russia and bilberries after holding those major military exercises will not be sending their troops back home or back to their basis. Instead, they will be remaining on the border with Ukraine. Why? They say because of the aggravation of the situation in the Donbass region. That say, eastern part of Ukraine close to the Russian border, Russian speaking breakaway regions.
[01:05:06]
Now, in Donbass, more people continue to be bused from Ukraine into Russia. They say fearful that they will be attacked by the Ukrainians. Ukrainians saying they have no intention of doing that. And then finally, on the diplomatic front Monday, the Russian Foreign Minister Sergei Lavrov will be speaking with his counterpart, the French foreign minister.
Jill Dougherty, Moscow.
HOLMES: Meanwhile, Ukraine's economy is taking a hit because of the uncertain situation in the region. Tymofiy Mylovanov joins me now from Kyiv to discuss. He is the president of the Kyiv School of Economics. He's also a former Minister of Economic Development and Trade in Ukraine. It's great to have your voice on this.
Let's talk about the damage that has already been done to Ukraine's economy by this crisis. What then would happen to Ukraine's economy in the event there is an invasion by Russia? What more damage would be done?
TYMOFIY MYLOVANOV, PRESIDENT, KYIV SCHOOL OF ECONOMICS: Well, even if there is none, there is already a lot of damage. Access to capital markets, capitalization of the companies, logistical problems, insurance costs going up. The GDP forecast a couple of weeks ago was revised down by about 1 percent. And there are estimates produced by our analysts of Kyiv School of Economics and others, that a blockade, let's say, if there is a blockade of the ports, that could hurt us between 0.5 percent to 3 percent GDP per months.
This is just without any kinetic action, without an invasion. If there is kinetic action, that depends, because it's really hard to assess the specific scenarios. But we have some data, we have some experience in 2014 when the East was invaded. And when Crimea next, the Ukrainian GDP dropped by 14 percent because of that. So that was the damage.
And the overall assessment of the damage in 2014 and further was, you know, the estimates range from $70 to $200 billion, which is approximately one-year GDP of Ukraine currently, maybe even more in the terms of 2013. So scenarios range.
HOLMES: Yes, that is a horrendous hit to the economy. Ukraine has been working to reduce the Kremlin's leverage over the economy protect itself somewhat economically. How successful have those efforts been to shield itself?
MYLOVANOV: Yes, you're correct. There's been a lot of effort to diversify and make the leverage of the Russian economy or kind of economic policies on Ukraine to be much smaller. And one example is our expert. Our expert in 2013 to Russia was about a quarter, slightly less than a quarter of all experts of Ukraine.
Nowadays, the -- it's about 5 percent, 6 percent. So it's significant decrease, and the European Union has become the largest trading partner for Ukraine, all countries together as the union. So that's one example. Another example, our logistic has been -- an logistics that includes ports and that includes railroads shipping has been diversified and was strengthened a lot our railroads and our ports in the south.
And several years ago, Russia harassed Ukrainian economy through kind of making it more difficult to export from Mariupol. And Mariupol used to have 40 percent of expert that support on Azov Sea, and it has to go through Carsten (ph) Straight and now there is a bridge to Crimea. So that all has become difficult. And now most of our expert goes through Odessa. So multiple measures have been taken --
HOLMES: Yes.
MYLOVANOV: But, you know, issues remain.
HOLMES: Yes, exactly. Is it possible Putin actually doesn't want to invade, but could continue to just surround Ukraine and damage the economy that way ferment political and social division and so on, just sort of use his positioning now in a sort of seizure of Ukraine?
MYLOVANOV: Absolutely, because Dvor (ph) is not just, you know, again, a kinetic or physical action. It's also economic, it's cyber, diplomatic. And you know, the businesses are suffering now. And they're diverting resources from development, from business investments into protecting operations. And so, if it continues that there will be harassment, there will be damage. And so that's a part of pressure.
[01:10:01]
HOLMES: Right. And when it comes to the damage, let's say, the worst case scenario, how much help could the West provide to a counterbalance effectively?
MYLOVANOV: Well, it depends on what kind of access or what kind -- capital. First of all, I think that's the most important thing. And there, of course, Ifies (ph) vehicles, the IMF, the World Bank, and so on. They're direct macroeconomic and other assistance. But, you know, it has been, you know, let's just compare it to Afghanistan, because the measure was of $4 billion, let's say annually, and Ukraine currently is getting much less.
And probably, we would need several if not more several, maybe $10 billion, $15 billion. That would stabilize the economy and that would actually help resilience of the Ukrainian economy.
HOLMES: Yes. I also just wanted to ask, we talked about, you know, the economic impacts before and after an invasion. But I'm curious your thoughts on what Russia could do in terms of Ukraine's infrastructure, it's still on the Russian power grid, isn't it?
MYLOVANOV: Yes, electricity, we are connected -- we are balancing our electricity grid with Belarus and Russia. So we don't trade with them unless there are emergencies for balancing reasons. And in the end of this mass amounts, were scheduled to disconnect them for a test period of several days. And the idea is that by the end of the next year, we could be connected or should be connected with the European grid.
And that structural change has been ongoing, because it's a very difficult one. And it has been ongoing for many years. Hopefully, it goes through. Then there is issue of gas, for example. Ukraine, surprisingly, or maybe not surprising to those who follow but it might be surprising to hear, it's a little bit better diversified than some other countries in Europe, because of course, it was heat in 2014. So it stopped buying directly from Russia.
It introduced reverse imports from Europe. And its consumption is an all-time low. So there have been a lot of economic measures taken and implemented in order to make Ukraine less energy dependent.
HOLMES: Right.
MYLOVANOV: But of course, it's not finished.
HOLMES: Yes, yes. Important analysis of a critical aspect of the situation. Timofiy Mylovanov, thank you so much. Really appreciate it.
MYLOVANOV: Thank you.
HOLMES: All right. I'm Michael Holmes here in Lviv, Ukraine. I will be back with more a little later in the hour. Let's head to Atlanta where Lynda Kinkade has the day's other top stories. Lynda?
KINKADE: Thanks so much, Michael. Well still to come, we have some royal health concerns after the British monarch test positive for COVID-19. We'll be live in Windsor with the latest on the Queen's condition.
Plus, surging cases and overflowing hospital beds. Hong Kong races to stop the spread of new COVID infections as hospital resources max out. A live report after the break.
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[01:17:00]
KINKADE: Welcome back, Britain's Queen Elizabeth is said to be experiencing mild symptoms after testing positive for COVID-19. Buckingham Palace says the 95-year-old monarch plans to continue light duties this week. According to U.K. media, she is fully vaccinated. The British Prime Minister Boris Johnson is wishing the Queen a swift recovery.
CNN's Anna Stewart joins us now from Windsor and is covering the story. So the Queen is doing pretty well it seems. She's going to continue working this week.
ANNA STEWART, CNN REPORTER: Good morning, Lynda. Yes, if ever we needed proof of the Queen's stoicism, I think being 95 years old, having COVID-19, having mild symptoms but continuing to work albeit with like duties is definitely proof of that. Now, we are told that the symptoms are mild, they are cold-like and hopefully it continues in that way.
The panelists have said she will continue to receive medical attention which is an interesting turn of phrase perhaps in some question whether that might include having a antiviral treatments and drugs perhaps, but we really don't know. And I think this is a running theme we've had in recent months is the palace don't really give us a running commentary on the Queen's health. She is 95 years old. And in recent months, her health has taken a bit of a turn for the worse.
In October she was actually admitted to hospital for a night for testing. We don't really know what for exactly, but she was told to have lots of rest and she canceled a number of engagements. She admitted just last week to feeling a bit frail in a public engagement. She's 96 in a couple of months time.
And I think the Palace will be doing their very best to keep her comfortable and not alarm anyone. I think that's the message that we got yesterday that she's having mild symptoms. They want us to know that, but they've said that she will continue with light duties.
KINKADE: Yes, incredible that she just keeps on carrying on the way she does. So Anna, are any other staff or royal family members in isolation or quarantine at this point in time?
STEWART: Yes, this was interesting, because actually concerns about the Queen getting COVID really started a couple of weeks ago and Prince Charles tested positive and that was just two days after he had seen his mother but it's been a couple of weeks since then. Following him testing positive a few days after that, his wife, the Duchess of Cornwall, Camilla, she tested positive as well. We know Prince Charles is out of isolation at this stage.
But the Queen has been within a very sort of small bubble within Windsor Castle of people looking after her ever since the pandemic began. It's called HMS bubble. And actually it seems to be a case that in addition to the royal family having COVID cases in the last couple of weeks, the royal household as well has some and we don't have specifics of that. But we were told that Windsor Castle does have some other members of the household with COVID-19. So there's probably more than one isolating at this stage.
A huge concern that she's 95 years old with COVID-19 is probably unsurprising. They've given -- restrictions have been lifted here in the U.K. and Omicron is so transmissible.
KINKADE: Yes, exactly. Well, good to have you on the story bright and early. Not too bright yet there in Windsor, still dark.
STEWART: Not, it's not bright yet. Just cold and windy actually, Lynda but (INAUDIBLE).
KINKADE: Well, stay warm, stay warm. Get a cup of tea. We'll chat to you soon.
[01:20:04]
Well despite the claims positive case, England is moving forward with plans to end all isolation requirements for those testing positive for the virus. The prime minister's office says an announcement is expected this week rolling back all restrictions as the country moves to treat COVID-19 as a virus that's here to stay.
And the Israel is lifting restrictions as well, allowing all tourists regardless of vaccination status back into the country starting March 1st. Travelers won't have to present proof of vaccination but instead will have to take PCR tests before and after their flight.
In Hong Kong is ramping up testing trying to contain the spread of the region's fifth wave of the virus. Hospitals are stretched to the limit with reports of people stuck outside in the rain due to a lack of hospital beds.
Kristie Lu Stout joins me now from Hong Kong with the latest on the situation. Christie, good to have you on this story because police are now being recruited to control this growing outbreak. Explained first how they're going to be deployed.
KRISTIE LU STOUT, CNN CORRESPONDENT: Yes, Lynda. Hong Kong is reportedly mobilizing its police force to contain this growing fifth wave of infection. According to the South China Morning Post, it says that the police would help prepare for mandatory mass testing in the city. At the moment, authorities in Hong Kong are considering mandatory testing for 7.4 million people who call Hong Kong home. Now this comes after the Chinese President Xi Jinping last week urged Hong Kong to take the main responsibility in stabilizing and controlling this growing outbreak.
On Sunday, Hong Kong reported 6,000 new daily cases of COVID-19 infection. On top of that. 14 new deaths caused by the virus and Mainland China has pledged help and help is arriving in the form of expertise in terms of testing, in terms of treatment, in terms of boosting quarantine capacity. In fact, right now, Mainland Chinese teams are helping with building these vast isolation and quarantine facilities in Penny's Bay, that's a corner of Hong Kong or Hong Kong Disneyland is based and also the Kai Tak Cruise Terminal.
These facilities would house up to 10,000 new isolation beds, isolation beds that Hong Kong desperately needs as the world witnessed last week. There's scenes of people stuck outside in the cold gurneys in the rain outside. But when you talk to experts, Lynda, they're telling you that even 10,000 beds are not enough when you look at the modeling of the virus here and the outbreak. Listen to this.
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DR. KAREN GREPIN, ASSOC. PROF. UNIV. OF HONG KONG SCHOOL OF PUBLIC HEALTH: The models do suggest that we could very easily be reaching tens of thousands, if not even larger numbers of cases sometime in March. More worrying is that we're also seeing that many of these models suggest that our capacity to hospitalize all the severe cases might very easily and very soon be exceeded. And that means that we will be facing a very large number of deaths here in Hong Kong.
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LU STOUT: Right now, Hong Kong is reporting 6,000 new daily cases of COVID 19 researchers at the University of Hong Kong so that number can jump to 28,000 new daily cases of COVID-19. And the number of isolation beds and spaces that are being constructed right now, simply not enough to cope with this on coming search. Back to you.
KINKADE: Yes, such stock images coming to us with all those gurneys (ph) out the front of the emergency rooms. Kristie Lu Stout, thanks so much for that update.
Well, after a break, we will return to Ukraine with my colleague Michael Holmes. He is following a last ditch effort of diplomacy for a peaceful resolution to the Russian Ukraine crisis. Stay with us for that story.
And later, I look at the potential economic impact around the globe if Russia moves forward with military action in Ukraine. We'll bring you that just ahead.
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[01:27:17]
HOLMES: Welcome back, everyone. I'm Michael Holmes in Lviv in western Ukraine. The White House says U.S. President Joe Biden has agreed in principle to a summit with the Russian President Vladimir Putin on Ukraine. The French brokered summit represents a last ditch effort at diplomacy as the military crisis intensifies. But the White House warning the meeting can only take place if Russia does not invade Ukraine, and would happen after U.S. Secretary of State Antony Blinken and the Russian Foreign Minister Sergei Lavrov meet on Thursday.
Meanwhile, the Pentagon is defending the Biden administration's position to reject calls for imposing pre-invasion sanctions against Russia. Have a listen.
(BEGIN VIDEO CLIP)
JOHN KIRBY, PENTAGON PRESS SECRETARY: He has not conducted another invasion in Ukraine yet. And we want to get -- we want -- we still think there's time to prevent that. So it's supposed to be a deterrent. If you punish somebody for something they haven't done yet, then they might as well just go ahead and do it. So we're holding that in abeyance and we're hoping that that could affect the calculus of Mr. Putin.
(END VIDEO CLIP)
HOLMES: Meanwhile, civilians in Ukraine are bracing and in some cases training for a possible invasion. CNN's Erin Burnett spoke with residents who say they're ready to fight.
(BEGIN VIDEOTAPE)
ERIN BURNETT, CNN ANCHOR (voice-over): This weekend in Lviv, Ukraine, a few 100 civilians gathering to prepare at the defense training sessions. People of all ages, but most of them young. The youngest, for us, the most jarring to see.
Natalya was here with her daughters, Kalina (ph) at Ophea (ph). She tells me she talks to them all the time about possible war with Russia.
NATALYA, UKRAINIAN RESIDENT: Yes, we always talk about this about war and we have a plan that's why we are here. BURNETT (voice-over): The training organized by a far-right political party and overseen by the Ukrainian Government's Territorial Defense Forces. People today learning hand to hand knife fighting with sticks, using wooden guns to practice shooting around corners, shooting rifles in group tactical target practice and listening to how to handle bazookas, detonators and mines.
Four-year-old Kalina (ph), paying close attention. Her mother tells me she is most worried they won't leave in time if there is a full Russian invasion. But Natalya says she stays because she's a surgeon.
(on-camera): And I know you want to stay here. Why?
NATALYA: Because I'm a doctor and I think I can help people when war will come to our home.
[01:29:44]
BURNETT (voice-over): Natalya's patriotism, a powerful symbol to Putin.
Up here on a windy hill above the city of Lviv, she and other Ukrainians taking this literally. "Don't panic. Prepare."
Erin Burnett, CNN -- Ukraine.
(END VIDEOTAPE)
HOLMES: And joining me now, CNN's international security editor, Nick Paton Walsh.
Great to have you here on set. You're just coming out of Poland, where you've been reporting from there. I wanted to get your take on this proposed Biden-Putin summit, if it happens. It feels very last-ditch, but better than nothing.
NICK PATON WALSH, CNN INTERNATIONAL SECURITY EDITOR: Yes. The French president, fighting for reelection himself, it's a huge moment for him on the international stage. So a lot of positive noises coming out of Paris.
The question is, what we're going to hear from Moscow when they wake up? Are they going to accept this. I would suggest it's probably likely given how much Vladimir Putin seems to like his ability to trade on the world stage.
But if you buy the idea like you hear Prime Minister Boris Johnson said that this is going to be a plan (ph) that this is the worst war in Europe since 1945, do you, necessarily, have to honor your diplomatic commitments if he would intend to enact that plan?
So we wait and see what the days ahead bring. There are lots of suggestions on the ground, that things are moving faster, than diplomacy might necessarily permit, but certainly some optimism may be. HOLMES: Yes. And I wanted to get your take on these -- what is
happening on the battlefield. What your view is of that because we are seeing, in the Donbas again, you know, the Ukrainians are saying that the separatists there are, literally, shelling themselves, to try to provoke something.
You have just done a big report on the disinformation side of this. How much of a role is that playing?
WALSH: It always has played an enormous role. Some of the videos that we've seen coming out over the past week or so, from the separatists' side have been quite clearly staged. One was filmed ten days before the event it was allegedly about actually occurred.
And so there is a lot of disinformation, as always fed into the separatist narrative. It's about creating the pretext.
And I have to say when you start seeing these narratives being built by separatist media, separatist Telegram channels, it speaks to a lot of forethought, it speaks to a lot of planning, and it tells you the direction in which this narrative is going to go.
And while nothing is inevitable at all there, the Secretary of State Antony Blinken said, you know, there is room for diplomacy until the artillery starts flying and the jets take off.
It is troubling, I think, to see the beginning of separatists making that cause, telling people to leave their areas, talking about coming under fire. Those reports forces many of them seem to be are persistent now. We've see that over the years here.
So, I think that is the cause here with the talk about has an order been given for this to begin. We may have seen elements of that already and what's happening to separatists there.
HOLMES: You've covered that area for years. And so you know how these guys operate. I'm curious, I mean what is the level of command and control of the separatists from Moscow? And what are the chances that, you know, even if Moscow says, ok, we're not going to invite, they go rogue?
WALSH: Kind of a possibility always, and that has been fought in the past that some of their leaders had bigger ambitions for their role than Moscow necessarily would have liked. Some of them come to a very quick untimely end.
And so there's always that risk in this. But I think, with a moment of this severity, for frankly, the fate of the Kremlin here. I mean you know, if Vladimir Putin gets this wrong, or does not emerge from this looking like he's embellished Russia's position somehow in the world, that's not brilliant for him.
And so, I would be surprised if we're seeing moves by the separatists now that don't have the endorsement of their paymasters in Russia.
HOLMES: And in a social sense, what is it like there? I mean for the people who live there, it is pretty grim, isn't it?
WALSH: Look I mean it is not a particularly cheerful place. A lot of people stay there for loyalties to the town where they've grown up. It is bleak. I mean my last experience there was about four or five years ago. Then it was pretty tough. There's relatively good supplies of everything.
But it's essentially a breakaway area. The purpose of which, is this conflict, with neighboring Ukraine. That is the focus of what people are kind of about there. You can see this mass mobilization the separatists talk about, the military age males there -- -that gives you an idea as to what kind of community we're talking about here.
There's not a hell of a lot else, necessarily, always going on. And that I think is the issue for Russia looking forward whether it decides to co-opt or recognize that area more broadly, into its territories and quite what it would be getting itself into there on the longer term.
HOLMES: Yes. Great analysis. Great to have you here with us too, Nick Paton Walsh. You'll be back next hour as well. So Nick's going to join us for more conversation next hour as well.
Meanwhile, I am Michael Holmes in Lviv. That will do it from us here. We will send it back to CNN Center and Lynda Kinkade, Lynda.
LYNDA KINKADE, CNN ANCHOR: Thanks so much Michael. We will check in with you again soon.
[01:34:45]
KINKADE: Well, if Russia invades Ukraine, the financial shockwaves could be felt by people around the world. You could feel it at the gas pump, as Russia remains a major oil exporter. Supplies are already failing to keep up with demand. And a price hike might be offset, if OPEC ramps up production and nations release their emergency stockpiles.
Rising inflation is already causing big issues here in the United States and to other countries. One analyst finds a Russian invasion could send the inflation rate in the U.S. to more than 10 percent. That could mean, the Federal Reserve might raise interest rates faster to cool and to offset the inflation.
There is also the threat of Russian cyber attacks against companies in the U.S. financial systems as well as critical infrastructure.
Doug Rediker is a senior fellow with the Brookings Institution on foreign policy, global economy and development. Thanks so much for joining us.
DOUG REDIKER, SENIOR FELLOW, BROOKINGS INSTITUTION: Great to be here.
KINKADE: So U.S. President Biden has said that defending democracy and liberties is never without cost. And he has warned that the cost of Russia invading Ukraine would be felt in the United States. In what way would it be felt?
REDIKER: Well, I think the consequences of a potential invasion would be felt through three different means (ph) in the economic sphere. One would be the consequences of the action itself.
The second would be the consequences of the reaction. That would be the sanctions that we and the Europeans would be likely to impose.
And then the third would be the reaction to the reaction. So what would President Putin do in response to what we and the Europeans might do in terms of sanctions.
And I think each of those three has a different set of potential consequences to Americans and Europeans and the rest of the world.
In the immediate term, an invasion by Ukraine -- sorry, by Russia into Ukraine, is going to have an impact obviously on Ukraine's trade. Ukraine is actually a big exporter of fertilizers and agricultural products. That's going to impact primarily North Africa. But that really has an impact on the global food supply. You're going to see some impacts there.
You are not going to see in the context of sanctions, I think, what we've heard at the White House -- you're not going to see the sanctions imposed oil and gas. It's what everybody is concerned about for good reason.
And I think the U.S. and European allies have said, if we go down that route, it's counterproductive not only because it hurts Russia, it hurts Americans, it hurts Europeans but because the political will to endure those sanctions whether it's the U.S. or the Germans or the Italians or others, is going to weaken if, in fact, homes aren't heated, businesses aren't able to run.
So the U.S. and European allies are not likely to impose sanctions on European gas and oil exports.
But the big concern I've got is that third bucket. If we go down the route of sanctioning, Russia, not oil and gas, but on bank transactions, on technology imports, and some other key sectors, well, Vladimir Putin has shown himself not shy about imposing some retaliatory sanctions himself probably through the cyber channels.
And we don't know what those cyberattacks might look like. And that is where I think the White House has done a good job of warning people to be on their guard. But we don't know exactly what that's going to look like and that's where I think the biggest risks are.
KINKADE: Yes, major concerns around any sort of cyber attack. We have already seen a cyberattack blamed on Russians by the U.S. and the U.K. last week. So certainly major fears as to what that could look like going forward.
But I want to ask you if you see much fluctuation in the market so far as the U.S. and others have warned of an imminent war. And should we expect turbulence going forward should the situation deteriorate? REDIKER: So for the last, let's call it 50 years plus or minus,
financial markets have grown very complacent on the geopolitical risks. The basic foundational principles have led everyone to believe, buy the dip is the best way to make money in the market.
And the question now, I think it's dawned on people in the last week or two is are we looking at new normal. Are we looking at a situation in which a land war in Europe is suddenly possible?
With some of the consequences that you and I just discussed as just skimming the surface, but whether it's cyber or energy or exports or trade or just immigration -- all of these things are pretty fundamental. And the markets have largely considered them to be irrelevant to their assessment of market risk.
I think the markets are now suddenly thinking, oh, wait a minute, this time could be different. If it is, I think it could see some shaky- ness in the global, financial markets. Not necessarily based on the fundamentals, but based on a sudden recognition that maybe complacency is not the best way to go about your daily business and we're going to reassess some fundamental premises on which traders have been trading for many, many years and decades.
KINKADE: And we have already heard women and children being told to evacuate parts of eastern Ukraine. There are certainly fears that a substantial invasion could lead to a flood of refugees. That no doubt would be a significant humanitarian cost, right?
[01:39:59]
REDIKER: Well, of course, anytime you have a war, there's the humanitarian element which trumps everything else. And this would be no different presumably.
I think that the one thing we can say is that because of the geographic position, Ukraine benefits, if that's the right word, from being on the border of Europe. And so they could actually see hundreds of thousands, maybe more, migrants flooding into central and eastern Europe, probably mostly Poland.
And the irony of the situation is that Poland would probably welcome them. That doesn't mean there would not be a humanitarian disaster. It does mean from an economic perspective, Poland would love to have a new immigrant population, that would easily assimilate into the Polish economy and culture.
And I think the big loser here, yet again, will probably be Ukraine which is already suffering the brain drain to Poland and other central eastern European countries.
So I think Ukraine, yet again, ends up being the victim here, potentially not only of an actual invasion but the consequences of a loss of human capital that might flood into central eastern Europe and stay there.
KINKADE: You make a good point. We have to leave it there, Doug Rediker. Good to get your perspective. Thanks so much for your time.
REDIKER: My pleasure. Have a good night.
KINKADE: Well, after 100 gold medals awarded, host Beijing bids farewell to the Winter Games. The historic games saw a new record set, but also more than one scandal. That story, ahead.
Plus, Canadian police clear the streets of Ottawa after a weekend of conflict with protesters. But have they given up the fight? We'll have the latest from Ottawa.
(COMMERCIAL BREAK)
[01:44:55]
KINKADE: Welcome back.
Well, Beijing closed out the 2022 Winter Olympic Games Sunday with a dazzling spectacle. Fireworks lit up the night sky as spectators danced and cheered. The International Olympic Committee president thanked the organizers and the people of China for hosting the games in the midst of a global pandemic. But the Beijing Olympics were not without controversy.
CNN's Selina Wang has a look at the highs and lows.
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SELINA WANG, CNN CORRESPONDENT: The Beijing 2022 little winter Olympics ended with victory, heartbreak and relief. To China, these games were a success. Beijing managed to pull off the games in the middle of a pandemic without any major outbreaks inside or outside the bubble. Becoming the first city to host both a summer and winter Olympics showing off a wealthier and more powerful China.
And it was incredible to be inside the bird's nest during that closing ceremony. It was electrifying even though we were sitting in the cold for several hours, the invited fans were excited, doing the wave, waving their iPhone lights in the air to the music, clapping loudly.
And there was a feeling of relief as well for these athletes, who have been spending so much time trying to avoid getting COVID, just trying to make it into Beijing and be able to compete. And now they can finally let loose for a moment.
And these games have often felt dystopian. We're often surrounded by workers in hazmat suits. We have PCR tests every day. We have to be completely separate from the rest of China's population.
And this closing ceremony was finally a moment where it felt like a party. There were lights, music and it ended with dramatic fireworks.
But these games will also be remembered for controversy and scandal. The opening ceremony began with Vladimir Putin as the guest of honor. The U.S. and some of its allies, have boycotted these games as a protest against allegations of China's human rights abuses.
In addition to that, I will never forget the moment that I saw 15 year old figure skating star Kamila Valiyeva take the ice for the last time in Beijing. Her performance was full of stumbles and mistakes, marred by a doping scandal that once again put the spotlight on Russia's history of state-sponsored doping.
But despite the controversy, the geopolitical tensions, and the scandal, the athletes still persevered. They brought the world together. They set new records. And still mesmerized the world with their performances.
Selina Wang, CNN -- Beijing.
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KINKADE: Well, Canadian police have cleared protesters out of areas in downtown Ottawa over the weekend, resulting in nearly 200 arrests. Officials say efforts are moving along to return the streets to normal even though tensions are still high.
CNN's Paula Newton reports.
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PAULA NEWTON, CNN CORRESPONDENT: Another dramatic weekend here in this country's capital, but this weekend things look so much different. Police saying they have managed a recapture block by block that crucial space in the downtown core, the one that is directly in front of Canada's National Parliament.
Police say there have been nearly 200 arrests, dozens of charges, and that includes charging some of the protest organizers. There are also two separate investigations underway as to whether police enforcement was in fact appropriate.
Having said that, police say this city now is starting to look more normal, in their words. And they are saying that they hope the city can return to calm. Take a listen.
STEVE BELL, INTERIM OTTAWA POLICE CHIEF: We promised earlier this week that we would clear our streets and give them back to our residents. We promised that we would return our city to a state of normalcy. With every hour, we are getting closer to that goal.
Please know that our entire police service remains committed to the community healing that still needs to be fostered and focused on in the days to come.
NEWTON: Now, that healing, of course, most pronounced in the city of Ottawa, but right through this country, there are a lot of questions being asked about the divisions that now lay bare still throughout the country depending on which side you're on when it comes to COVID-19 measures.
Add to that the fact that Emergencies Act in order for it to stay in place, will have to be passed by Parliament. There will be a vote on Monday night. The Trudeau government still saying that it is something that must remain in place if they are going to be able to combat some of these protests.
Paula Newton, CNN -- Ottawa.
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KINKADE: Well, rescue operations are ongoing in Brazil but the death toll is rising after the deadly landslides north of Rio De Janeiro on Tuesday. The number of fatalities rose slightly Sunday to 157. More than 150 people remain missing.
Hundreds of others have lost their homes or have been displaced. The rainfall total in the are a Tuesday afternoon was higher than the historic average for the entire month of February.
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KINKADE: Still to come on CNN NEWSROOM, the streets of Paris are some of the noisiest in Europe. Now they have a plan to crack down on the noise pollution. How they're going to do it when we come back.
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KINKADE: Welcome back.
Well, one of the noisiest cities in Europe could get a little quieter. Paris is testing out a new system where radar devices identify loud vehicles and offenders could be paying some hefty fines.
Kim Brunhuber reports.
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KIM BRUNHUNBER, CNN CORRESPONDENT: All revved up and ready to go. Paris is adding a noise radar system on select streets to try and reduce the roar of traffic in the city.
Over the next few months, devices like this one will test the noise levels of motorists buzzing by. The goal is to find out if they can identify vehicles that are too loud. And accurately capture their license plates so they can issue automated fines.
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CHRISTOPHE MIETLICKI, TECHNICAL DIRECTOR, BRUITPARIF (through translator): There are two acoustic systems, each composed of four microphones. These two systems focus on the loudest vehicle. Then a wide lens camera films the scene and were able within that scene to detect the vehicle.
BRUNHUBER: A study last year, based on European environment agency data ranked Paris as one of Europe's noisiest cities with 5.5 million people exposed to traffic noise at 55 decibels or higher. That's compared to only 2.6 million people in London and 1.7 million
people in Rome. The government hopes this initiative will improve the quality of life for Parisians.
MIETLICKI: We have now known for over ten years that noise pollution has a direct impact on people's health and increases the heart rate and blood pressure.
BRUNHUBER: Officials say they won't issue any fines for now. But they expect to start sending out tickets early next year once they get approval though police can still ticket noisy vehicles, the old- fashioned way by catching a driver in the act.
Some people are skeptical the new technology will work.
UNIDENTIFIED MALE: I think it would be better to have a bit more police on the streets like we used to have. You don't see any traffic police or whatever. And they could act on this kind of nuisance.
BRUNHUBER: But for now, officials warn motorists to watch their noise because that ordinary looking lamppost might just be listening.
Kim Brunhuber, CNN.
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KINKADE: Well, thanks so much for sending part of your day with me. I'm Lynda Kincade.
I'll be back with much more news in just a moment.
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