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Vladimir Putin Orders Russian Forces Into Separatist-Held Areas In Eastern Ukraine; U.N. Security Council Convenes Urgent Meeting On Crisis; Global Markets Rattled As Russia-Ukraine Tensions Rise; U.K., Australia And New Zealand Move To Living With COVID. Aired 12-1a ET

Aired February 22, 2022 - 00:00   ET

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


(COMMERCIAL BREAK)

[00:00:40]

MICHAEL HOLMES, CNN ANCHOR: Hello, everyone, I'm Michael Holmes coming to you live from Ukraine as Western leaders are speaking out against Vladimir Putin ordering Russian troops into the Donbas region.

JOHN VAUSE, CNN ANCHOR: I'm John Vause at CNN's world headquarters with the latest on living with COVID, ending restrictions just as a more contagious and potentially more deadly sub-variant of Omicron takes hold.

HOLMES: Welcome everyone, the Russian President Vladimir Putin has now ordered troops into parts of eastern Ukraine controlled by Russian backed separatists. The U.S. says Russian troops could mobilize within hours, and the State Department is moving diplomats in Western Ukraine over the border to Poland for the night.

Mr. Putin's deployment order came just hours after he signed a decree recognizing those breakaway regions Donetsk and Luhansk as independent republics separatist there have long had backing from the Kremlin.

U.S., Ukrainian and NATO officials say Moscow supplies them with advice and intelligence and even embeds Russian officers in their ranks.

Meanwhile, this video from a Russian media outlet shows a military convoy moving through the streets in Donetsk. Though it is still unclear exactly who the equipment belongs to. It's hard to tell if Russia's decision represents the opening moves of a full-scale invasion of Ukraine or something less, but Vladimir Putin delivered an ominous threat to Kyiv on Monday.

(BEGIN VIDEO CLIP)

VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): And from those who seized and hold power in Kyiv, we demand an immediate cessation of hostilities. Otherwise, all responsibility for the possible continuation of the bloodshed will be entirely on the conscience of the regime ruling on the territory of Ukraine.

(END VIDEO CLIP)

HOLMES: Now, in Donetsk, people celebrated after Mr. Putin signed the decree formally recognizing the breakaway region's independence. But in the capital Kyiv, Ukrainian President Volodymyr Zelensky appeared unwilling to bend to the threats.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKY, UKRAINIAN PRESIDENT (through translator): We are on our land. We are not afraid of anything or anyone. We do not owe anything to anyone. We are confident of this.

(END VIDEO CLIP)

HOLMES: Meanwhile, the U.N. just wrapped up an emergency meeting of the Security Council to discuss the crisis, with the U.S. Ambassador accusing Russia of creating a pretext to invade Ukraine.

(BEGIN VIDEO CLIP)

LINDA THOMAS GREENFIELD, U.S. AMBASSADOR TO THE UNITED NATIONS: He has since announced that he will place Russian troops in these regions. He calls them peacekeepers. This is nonsense. We know what they really are.

(END VIDEO CLIP)

HOLMES: Now, in the United States, President Joe Biden responding to Vladimir Putin's actions by signing an executive order restricting American business in those breakaway regions of Ukraine.

The president says this move denies Russia the chance to profit from its blatant violations of international law as he put it. And the U.S. will continue to closely consult with allies and partners he said, including Ukraine on next steps.

Meantime, America's top diplomat Antony Blinken had this warning for Russia. Quoting here, "Kremlin recognition of the so-called Donetsk and Luhansk. People's Republic as independent requires a swift and firm response and we will take appropriate steps in coordination with partners."

All right, for more reaction, let's bring in CNN White House Correspondent Arlette Saenz. Arlette, bring us up to date on the White House's position and what actions it's taking in and what actions is not yet taking.

ARLETTE SAENZ, CNN WHITE HOUSE CORRESPONDENT (on camera): Well, Michael, the White House continues to sound the alarm about the threat of a further invasion by Russia into Ukraine, especially following those moves that Russian President Vladimir Putin took earlier today as he recognized those two pro-Moscow territories as he recognized their independence.

You heard They're from the U.S. Ambassador to the United Nations Linda Thomas Greenfield a talking about what -- some of the movements that they've seen Russia take in recent days.

[00:05:11]

SAENZ: Now, U.S. officials have said that they anticipate that those troops that Putin has ordered into those Eastern Ukraine regions that those troops could be arriving in the coming hours.

The U.S. has also seen broad preparations for a broader strike invasion, including the arrival of amphibious ships, as well as equipment for airborne units.

Now, this all comes as the U.S. over the course of the past few days has really ratcheted up their warnings about Russia's intentions when it comes to Ukraine. But one thing that the U.S. has not said so far is they are -- the White House has so far declined to say whether they believe those troops going into that Donbas region, whether that that would amount to a further invasion.

A senior administration official telling reporters today that it would not necessarily be a new step for troops to be there, because they have been there in that area since 2014.

Now, that decision to not yet describe whether that would amount to a further invasion, that is very important, particularly when it comes to the sanctions that the United States has prepared to place should Russia move forward with that more broad scale invasion.

Now, one thing earlier today -- or I should say, on Monday, President Biden did announce more limited targeted sanctions that would prevent American companies from conducting trade or investing in those two pro-Russia territories that Putin had recognized as independent.

Now, this does not compare, it does not equate to those larger more sweeping sanctions that the U.S. has been working on with allies to implement if Russia does further invade Ukraine.

But top U.S. officials have said they expect some action to be taken on Tuesday as they continue to monitor exactly what Russia's next moves are.

Now, one thing that officials have still been making clear, even as Russia is ramping up this military pressure, they still insist that there could be a path to diplomacy.

One senior administration officials said that they would be working on diplomatic efforts until "the tanks roll". So, still there are holding out some hope that diplomacy could work. But the U.S. still remains very clear eyed about Russia's intentions, particularly as they are watching the potential of this military provocation really brewing.

HOLMES: Yes, already a criticism of those very limited sanctions outlined. Arlette Saenz there in Washington, thanks so much.

Well, just hours ago, the United Nation Security Council met for a late-night emergency session at the request of Ukraine, many member nations speaking out against Russia's actions, including the U.S. Ambassador to the U.N. as we just heard who says it will be met with swift and severe consequences.

CNN's Richard Roth joins me now from the U.N. with more. The U.N. Security Council often criticized for not being able to do very much and of course, Russia having a veto at the Security Council. Bring us up to date on events there, Richard.

RICHARD ROTH, CNN U.N. CORRESPONDENT: Well, there was a lot of talking, which critics of the U.N. say is all it does, but there are 193-member countries of the United Nations. And if one country invades or threatens to invade another, that's the so called third rail of International Law and of Diplomacy or lack of it here at the United Nations alarm bells go off.

We earlier heard the U.S. Ambassador denounced what Russia is doing, bringing in so-called peacekeepers into the two regions in Eastern Ukraine. While most of the countries here on the Security Council denounced what was done and condemn Moscow. The Russian ambassador said look, there's not going to be a bloodbath in Eastern Ukraine. He called it a verbal assault in the Security Council from the amount of countries that were denouncing Moscow.

China played it straight down the middle as it always does, appealing and calling for restraint, no violence and diplomacy please. The United Kingdom joining the U.S. and saying that they will be revealing new sanctions on Moscow.

The Ukrainian Ambassador when he took his mask off due to COVID rules, said there's a virus that is coming from the Kremlin and the U.N. is sick and it just depends on if the United Nations now will succumb to what Russia is doing, Michael.

HOLMES: All right, thanks for that wrap up Richard Roth there at the U.N. Good to see you my friend.

Now, in the coming hours, European Union officials will discuss the list of Russian individuals and entities subject to sanctions as well as details of general sanctions against Russia.

[00:10:09]

HOLMES: In a tweet, the president of the European Commission said this: "The recognition of the two separatist territories in Ukraine is a blatant violation of international law, the territorial integrity of Ukraine and the Minsk agreements. The E.U. and its partners will react with unity, firmness and with determination in solidarity with Ukraine".

Now, the United Kingdom has already announced it will impose new sanctions and a top diplomat said they will be "severe and far reaching". And the British Prime Minister Boris Johnson calling Vladimir Putin's actions a dark sign.

(BEGIN VIDEO CLIP)

BORIS JOHNSON, BRITISH PRIME MINISTER: This is plainly in breach of international law. It's a violation of -- a flagrant violation of the sovereignty and integrity of the of Ukraine. It is a repudiation of the the Minsk process and the Minsk agreements. And I think it's a very ill omen and a very dark sign.

(END VIDEO CLIP)

HOLMES: All right, let's bring in Matthew Schmidt now. He's an associate professor of National Security and Political Science at the University of New Haven. Good to see you again, Professor.

So, what do you think is Putin's next move now that he's putting these so-called peacekeeping troops in the Donbas?

MATTHEW SCHMIDT, ASSOCIATE PROFESSOR OF NATIONAL SECURITY AND POLITICAL SCIENCE, UNIVERSITY OF NEW HAVEN: He retains total control, just like he did yesterday. It doesn't change a lot on the ground. He had troops there yesterday. He has more troops there tomorrow. He can sit back and wait. And he can he can bait Zelensky to see if the Ukrainian military will do something. He can create his own incident, or he can just sit for as long as he wants right now.

HOLMES: The U.S. seems to be talking about Donbas specific sanctions. You know, they were -- they were talking about, you know, hitting hard with sanctions if a single Russian boot crossed the border.

Now, Russians have been on the ground in the Donbas for a long time, but this is something more formal. There are Russian boots crossing the border. Do you think these limited sanctions are enough or is this the time to send a big message?

SCHMIDT: No, I think it's a mistake for the administration to do these limited sanctions right now. We need to go all in on this. Defeat mechanism for Putin against Putin is his public. And there are really only two ways to do that. One is to -- is to cause pain in Russia economically to the oligarchic class.

And the second is to show the rest of the country what the human cost of this war. That is when and if the shooting starts to pardon me here, but to stack up the body bags in front of the Kremlin so that everybody can see what's really going on. And his information machine can't hide that from his own citizens.

HOLMES: Yes, you started a recent CNN op-ed by asking, you know, what's the only real deterrent to a Ukrainian -- Ukraine invasion by Putin? So, what is the answer to that given the situation right now?

SCHMIDT: It his public. It's his defeat mechanism. The public in Russia, for where this war is not very popular. And I don't think we understand that in the West, especially under the military age cohort. This is -- this is not something that people are necessarily rallying around the flag for, they have to see what's really going on, they have to see the real pictures in Ukraine when the shooting starts. And they have to see that there are real Russians that are coming back as casualties.

And then, the sanctions need to hit and essentially need to say to the Russian public, do you want this guy leading you, right? Is this what you want? Is this the future that you want? Or is this the future that he wants?

HOLMES: I know you've also written that the U.S. should, you know, fight back stronger in the information war and engage ordinary Russians, and even oligarchs, what would that look like?

SCHMIDT: A lot of it looks like what we're doing right here, getting the message of real news out and into the public. A lot of what's going on right now in the Russian public is that the younger cohorts are using telegram and other social media channels to get news that's coming in encrypted and getting around the Russian censors. So that needs to continue.

And then, this is a big part of what the Ukrainian military is doing and what the Ukrainian government is doing because they speak the language, they know Russian society and they're getting the message across that this, you know, what's really going on in the Donbas and what Putin is really threatening elsewhere.

And again, right to remind viewers, there are millions and I think Ukrainians in Russia right now that are Russian citizens. And they're looking at their friends and relatives who are staring down the barrel of Russian guns. This isn't easy for them.

[00:15:03]

HOLMES: Yes, exactly. You told strategic planning to the -- to the U.S. military. So, you have a good position to be talking about this.

I'm just curious, I mean, there's been exchanges of fire artillery and other banned weapons over that line of contact in the Donbas. With the Russians there now, if they're acting as, "peacekeepers", what is Ukraine meant to do if the separatists are firing across that line of contact? If they return fire, one presumes these "peacekeepers" will swing into action.

SCHMIDT: Right, the Ukrainian military's job right now is to not be provoked. Russia will have his military try things over and over again to see if they can trip the Ukrainians up into giving Putin an excuse to widen the war.

Eventually, however, that won't matter, and Putin can create his own incidents. But look, the trick for the Ukrainian military here is twofold. This is how the war comes down. We're going to get caught up in all of the tactical details here over the next few days. But it comes down to two big things.

First, is the ability of the Ukrainian military to transition from an active defense that is from slowing down Russian troops coming across the border and into a resistance movement.

And the second is just simply the willingness of the average Ukrainian citizen, soldier or civilian alike to fight and to continue the fight if Russia comes in and uses kill lists and things like that to try to destabilize the social and political structure of society. That's what it will come down to.

HOLMES: Professor Matthew Schmidt, as always appreciate your insights. Thanks so much.

SCHMIDT: My pleasure.

HOLMES: All right, the escalating tensions continue to rattle investors and markets around the world.

CNN's Kristie Lu Stout joins me now from Hong Kong. What are you seeing Kristie?

KRISTIE LU STOUT, CNN CORRESPONDENT: Yes, Michael, stocks across the Asia Pacific region are in the red, this after Russian President Vladimir Putin order troops to enter those breakaway pro-Moscow regions in Eastern Ukraine. Let's bring up the picture for you. And it's a portrait across the region in red. And if you can look at the latest data, we'll bring it up on the screen. We've been monitoring the Nikkei in Japan, as well as the other markets. You see the Nikkei is down 1.8 percent here in Hong Kong, the Hang Seng is down 3.34 percent, Seoul KOSPI down 1.7 percent. The Shanghai Composite down 1.4 percent.

I should also add that concerns about more tech sector restrictions are also weighing on the markets here across China.

Also today from Asia, we are closely monitoring U.S. Futures and let's bring up that picture as well. Because you know, we know on Monday it was Presidents Day holiday in the United States, markets were closed. But when they open, it's going to be a down day there. Dow Futures down 1.3 percent, NASDAQ Futures down 3-1/4, S&P 500 down 2.17 percent.

Now, according to the White House, they issued a statement on Monday saying that U.S. President Joe Biden plans to impose sanctions on those breakaway pro-Moscow regions in Eastern Ukraine. That announcement has been pushing up the price of oil. There is just so much uncertainty out there in regards to the fate and future of Ukraine and beyond.

And bottom line, this is not good news for the markets. We've been reaching out to a number of strategist and analysts for comment. And I want you to listen to this or rather look at this, a statement that we got from Michael Every, he's a Global Strategist from Rabobank. And he tells CNN this "The Russia's situation is also worryingly linked to concurrent dynamics in Asia, such as the news of China is to shift to a single state-run portal to buy its iron ore. In short, the global security, economic and financial architecture is all crumbling", he says. "Such changes are not positive for markets".

And then, we have this from Damien McColough is the head of Fixed Income Research at Westpac. And he tells CNN "I do think it's as much a short squeeze as a flight to quality. Today's move is clearly an escalation, which suggests that the current risk rewards will favor lower long-end yields".

And sure enough, we know this that this ongoing very fluid crisis in Ukraine has driven up the price not only of oil, but it's driven up the price of gold, as well as Treasury bonds as investors out there just scrambling to find some sort of safe haven out there. Back to you, Michael.

HOLMES: Yes, big disruption, Kristie Lu Stout. Appreciate it. Thanks so much.

STOUT: Thank you.

HOLMES: And much more from Ukraine at the bottom of the hour, but first, let's take it back to John Vause in Atlanta with today's other stories, John.

VAUSE: Michael, thank you. We'll see you before too long. And we'll take a short break in the meantime and after two years of tight border controls, more countries are welcoming back international travelers, all part of learning to live with COVID.

Coming up, easing restrictions, emotional reunions and endless relief.

Also ahead, a series of winter storms barreling through the United States. We'll get the latest track from the CNN weather desk in a moment.

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[00:22:11]

VAUSE: In the U.K., an additional COVID booster shots will be available within weeks to those older than 75 as well as the most vulnerable. All part of Britain's new learning to live with COVID approach.

This week, England laid all pandemic restrictions, just one of many nations to do so with new infections globally on the decline. We get this report from CNN's Nina dos Santos.

(BEGIN VIDEO CLIP)

NINA DOS SANTOS, CNN CORRESPONDENT (voice over): Living with COVID-19 according to the British Prime Minister Boris Johnson, it's the way forward and the next phase of the U.K.'s battle with the coronavirus.

Johnson says that since there's sufficient immunity built up over the past two years, on Thursday, all coronavirus restrictions will end in England. People who test positive will no longer legally be required to isolate, routine contact tracing operations will stop and free universal testing will cease in April.

He says that even though the pandemic isn't over, it's important to shift away from government mandates to personal responsibility.

JOHNSON: COVID will not suddenly disappear. So those who would wait for a total end to this war, before lifting the remaining regulations would be restricting the liberties of the British people for a long time to come. This government does not believe that that is right or necessary.

DOS SANTOS: Australia is also lifting some of its strictest COVID-19 restrictions, as it reopened its international borders on Monday to vaccinated tourists, so the first time in nearly two years.

UNIDENTIFIED FEMALE: Picking up my best friend, haven't seen him since 2018. And he made it back just in time for my wedding in four days.

DOS SANTOS: The long-awaited reunions part of a staggered plan by the government to move away from the cycle of lockdowns and border controls that earned the country the nickname fortress Australia.

Late last year, after parts of the nation reached benchmark vaccination rates, Australia slowly began to reopen its doors.

In November, fully vaccinated Australian citizens were allowed to travel abroad and to return home.

But this welcome back isn't without a few ground rules. Travelers must show proof of having two doses of an approved vaccine and Western Australia remains closed until March the 3rd. Unvaccinated people will still have to quarantine but in the states of Victoria and New South Wales, they've recently slashed their isolation periods from 14 to seven days.

DAN TEHAN, AUSTRALIAN TRADE, TOURISM AND INVESTMENT MINISTER: We're throwing a party out here at Sydney Airport. Everyone's celebrating. It's so great to have the international tourists back from right around the world.

DOS SANTOS: New Zealand is also signaling a shift in its COVID-19 measures. Prime Minister Jacinda Ardern said the nation will begin easing its vaccination mandates and other social distancing rules after its passed the peak of the Omicron variant, which experts say could be in the next three to six weeks.

[00:25:12]

JACINDA ARDERN, PRIME MINISTER, NEW ZEALAND: We all want to go back to the way that life was and we will, I suspect sooner than you think.

But when that happens, it will be because easing restrictions won't compromise the lives of thousands of people, not because you demanded it.

Ardern referring to protesters inspired by trucker's demonstrations in Canada that have camped out in the country's capital to protest vaccine mandates and other government policies.

New Zealand zone phased reopening is underway. On Sunday, it'll allow fully vaccinated New Zealand citizens and Australians to enter the country from Australia if they self-isolate for seven days with more reopenings planned throughout the course of the year.

Nina dos Santos, CNN, London.

(END VIDEO CLIP)

VAUSE: To San Diego now, Dr. Eric Topol, Cardiologist and Professor of Molecular Medicine at Scripps Research. Welcome back to CNN Newsroom. DR. ERIC TOPOL, PROFESSOR OF MOLECULAR MEDICINE, SCRIPPS RESEARCH: Great to be with you, John.

VAUSE: OK. So, around the world, we're seeing restrictions coming to an end or easing up to varying degrees. It's all part of, you know, living with COVID stage that we're now in.

The British Prime Minister outlined the big picture of how this would work during question time, here he is.

(BEGIN VIDEO CLIP)

JOHNSON: It is time that we got our confidence back. We don't need laws to compel people to be considerate to others, we can rely on that sense of responsibility towards one another. Providing practical advice in the knowledge that people will follow it to avoid infecting loved ones and others.

(END VIDEO CLIP)

VAUSE: I'm just wondering if the past is prologue? Is the jury still out on the wisdom of trusting everyone to do what's sensible and responsible?

TOPOL: I would agree with that point. We are really not ready for people to have their own rules about self-isolation. That is not to have any.

There are people who are immunocompromised out there, there are people who are at risk for various reasons. And spreading the virus with any kind of reckless policies isn't going to help anything.

So, we have to be careful here. It's good to be confident that we're coming down from this Omicron wave. But it's very likely in the months ahead, we'll face another noxious variant that can be really troubling.

So, we don't want to be too overconfident. And we don't want to abandon things at work.

VAUSE: I'm just wondering if that new variant is already out there, sub-variant of Omicron, those BA.2 (INAUDIBLE) there's been a bunch of studies recently that is more contagious than the already highly contagious Omicron.

So, could you see a new wave coming in with BA.2 and are need to bring back these restrictions? And how difficult will it be to put those restrictions back in place?

TOPOL: You're making an essential point, John. The BA.2 itself, the data are pretty positive for not having anything that's vaccine resistant. That is a really escaping immune system any different than the Omicron sister BA.1 and not more virulent, not not more disease causing.

Although, there was a study from a very reputable lab in Japan that suggested in the animal model that it could be concerning, but we don't have any good evidence yet to be afraid of BA.2, it really is behaving much more like the original Omicron BA.1.

However, there will be likely because we have so many billions of people out there who have not been vaccinated, immunocompromised people who can have the virus evolve within them, massive animal reservoirs of the virus. There's so many different ways that a virus, as you mentioned, could already be out there with a new variant that's troubling, or could be out there in the months ahead.

VAUSE: And if it's a loop (PH) with COVID, then crucial to the living part of that (INAUDIBLE) booster shots. Again, there's been some new data recently, which says or indicates they are very effective, much more effective at preventing serious illness and death for a much longer time than first thought, right?

TOPOL: Yes, I think the really important message regarding from the booster shot is it had a very pronounced benefit. And it may be quite durable for severe disease protection, protection against hospitalizations and deaths, even against Omicron which had so many mutations different from any other version of the virus.

So, it really looks favorable. There is this question of a fourth dose for people of advanced age like over 75. That is the plan in the U.K.

And of course, it's being used in Israel more liberally, but the fourth dose may not be necessary if we see very low levels of circulating virus, which is the hope in the weeks and months ahead.

VAUSE: I mean, really, and the situation with the fourth dose the law of diminishing returns coming into play?

[00:30:07]

TOPOL: Well, you know, it's four months after the third dose, there is still evidence, at least from Israel, of people having the same type of thing that happened with the initial booster.

So at least for people at high risk, it's something to think about. That's what we saw with the U.K. announcement today. We're going to have to grapple with that in the U.S. On other countries.

But it's not likely to be anything like the booster campaign that we've been through, which was essentially all adults. It's probably going to be very restricted to immunocompromised and people of particularly advanced age, but we'll see over time.

VAUSE: Dr. Eric Topol, as always, we're grateful for your expert opinion and your insight. Thank you for being with us.

TOPOL: Thank you.

VAUSE: We'll take a short break. When we come back, there's a big setback for diplomacy. The Russian president threatens the Ukrainian government, and it's trying to redraw the borders of a sovereign country. We're live from Ukraine with the very latest, in a moment. (COMMERCIAL BREAK)

HOLMES: Hello, everyone. I'm Michael Holmes, coming to you live from Lviv in Western Ukraine, where we are tracking the uproar and alarm over Russia's troubling maneuvers that have ramped up this crisis in Eastern Ukraine.

Russian troops could move into the separatist regions at any time now and might already be there. Russian media have been airing video of a military convoy in the streets of Donetsk. Though it would be still unclear exactly who the equipment belongs to.

Ukraine's president addressed the nation earlier insisting, quote, "We don't owe anything to anyone, and we will not give anything to anyone." And he thanked the Ukrainian people for keeping their cool.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKY, UKRAINIAN PRESIDENT (through translator): We have been prepared for a long time for any scenario. But there is no reason for your sleepless nights.

(END VIDEO CLIP)

HOLMES: Meanwhile, the Russian president has accused authorities in Kyiv of carrying out two, quote, "punitive operations" in Donetsk and Luhansk. Those are the large Russian-backed separatist areas in light red there on your screen.

And Russia's U.N. envoy says they won't allow a bloodbath. Ukrainian authorities deny any such attack.

[00:35:04]

But Vladimir Putin called on them to immediately halt hostilities and said, if they don't, any bloodshed would be their fault. Now, the Russian president claims the forces deployed in the breakaway areas of Eastern Ukraine are part of a peacekeeping mission.

CNN's Matthew Chance has a closer look at the Kremlin's perspective.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN INTERNATIONAL CORRESPONDENT (voice-over): This is the moment Vladimir Putin further escalated this dangerous standoff with Ukraine, signing a presidential decree that would unilaterally redraw Ukrainians borders and set back any prospects of diplomacy.

VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): I consider it necessary to make a long overdue decision to immediately recognize the independence and sovereignty of the Donetsk People's Republic and Luhansk People's Republic.

CHANCE: For years, those self-styled rebel republics backed by Moscow have been the focus of Ukraine's bitter civil war. A peace deal called the Minsk Agreement was meant to end the fighting and reintegrate the breakaway regions into Ukraine.

Now Russia and the entire region is on a war footing once again. And President Putin, who has massed tens of thousands of Russian troops near Ukraine's borders, has made it clear there will be no quarter given if the government of Ukraine attempts to resist.

PUTIN (through translator): And from those who seized and hold power in Kyiv, we demand an immediate cessation of hostilities. Otherwise, all responsibility for the possible continuation of the bloodshed will be entirely on the conscience of the regime ruling on the territory of Ukraine.

CHANCE: But it may be Russia that's planning more, even manufacturing a reason to attack.

This is what Russia says are Ukrainian armored vehicles that crossed its border and were quickly destroyed, killing five Ukrainian troops inside. Ukrainian officials have strongly denied this ever took place. There was no crossing, no Ukrainian casualties, they insist. All this is just a pretext, they say, to ratchet up tensions.

Earlier, there was more Kremlin theater on state television. A carefully-choreographed session of the normally closed Russian security council, discussing Eastern Ukraine. And then, called on one by one to tell the Russian leader what he wanted to hear.

"The situation there is tense," the Russian defense minister says. "Serious provocations are being prepared," he alleges, "to impose a forcible solution on the region."

The implication is that Russia should act.

"Basically, Ukraine doesn't even need these territories now," said Dmitry Medvedev, the former Russian president and prime minister. "The residents have not been receiving any support from Ukraine in years," he added. "On the contrary, they're subjected to mass repression."

On Russian state media, these were the jubilant scenes in Donetsk, the main city in one of the breakaway regions, when news filtered back that Moscow had recognized the territory as an independent state. Russian flags and fireworks set to a blaring national anthem.

For the U.S. and its allies, this is yet another unilateral Russian violation of Ukrainian sovereignty, to be punished.

Matthew Chance, CNN, Kyiv.

(END VIDEOTAPE)

HOLMES: Now, the president of the European Council is in agreement. Charles Michel tweeting that Russia's recognition of the separatists territories also violates international law and the Minsk agreements. And, quote, "The E.U. and its partners will react with unity, firmness, and determination."

Now the spokesman for the U.N. secretary-general also condemning Russia's actions.

(BEGIN VIDEO CLIP)

STEPHANE DUJARRIC, SPOKESMAN FOR U.N. SECRETARY-GENERAL: The secretary-general is greatly concerned by the decision by the Russian Federation related to the status of certain areas of Donetsk and Luhansk regions of Ukraine.

The secretary-general considers a decision of the Russian Federation to be a violation of the territorial integrity and sovereignty of Ukraine and inconsistent with the principles of the charter of the United Nations.

(END VIDEO CLIP)

HOLMES: Now, the Lithuanian prime minister had much harsher words for President Putin, saying, "He put Kafka and Orwell to shame" and that "there are no limits to a dictator's imagination, no lows too low, no lies too blatant, no lines too red to cross."

She goes on to say how the world responds, quote, "will define us for generations to come."

Now, clearly, the world is watching and waiting for Vladimir Putin's next move. While we wait, CNN's Brian Todd breaks down the Russian president's moves.

(BEGIN VIDEOTAPE)

[00:40:10]

PUTIN (through translator): Ukraine is not just our neighboring country. It's an integral part of our own history, culture, and spiritual space.

BRIAN TODD, CNN CORRESPONDENT (voice-over): Analysts say, for Vladimir Putin, Ukraine is personal. To hear Putin tell it on Monday, Ukrainians are really Russian, hardly even their own nation.

PUTIN (through translator): Ukraine has never had a consistent tradition of being a true nation.

SUSAN GLASSER, CNN GLOBAL AFFAIRS ANALYST: I think for Vladimir Putin, he is essentially denying the legitimacy of Ukraine as an independent state.

TODD: His speech on Sunday, a window into his thinking in history.

JOHN SIPHER, FORMER CIA DEPUTY CHIEF OF RUSSIA OPERATIONS: He's got all of these grievances that are built up, and he's trying to solve them all in one sort of very, you know, brutal attack on Ukraine.

TODD: Early in his presidency, the former KGB colonel told his nation, "The demise of the Soviet Union was the greatest geopolitical catastrophe of the century." And there was one Soviet republic he especially regretted losing.

GLASSER: For him, Ukraine is the crown jewel that was lost. Ukraine is a sister country.

TODD: Experts say Putin has always had the view that countries on Russia's periphery have to be pro-Russian, and he sees a western- friendly Ukrainian government as a threat to that ideal.

MARC POLYMEROPOULOS, FORMER HEAD OF CIA CLANDESTINE OPERATIONS IN EUROPE, EURASIA: He doesn't fear NATO. He fears democracy, and Ukraine, which is a fledgling democracy in Europe. That's something that he fears, because it's an example for his own people to see.

TODD: But they also say the man born and raised in what is now St. Petersburg, the seat of the czars, has his own legacy in mind when it comes to what happens in Ukraine.

SIPHER: He wants his legacy to be that, like the great czars of the past, or the heads of the Soviet Union, he left Russia as a great power to be feared, respected, and treated seriously in the world.

TODD: Analysts say Putin has chafed when he sees what he's perceived as past U.S. administrations treating Russia like a lesser power and that flexing his muscle with Ukraine is a way to keep his country relevant.

SIPHER: He wants people to be coming to Russia to solve world problems. And being a threat to others, that's better than being disrespected or ignored.

TODD: But Kremlin watchers say the man viewed as the ultimate strategist may have overplayed his hand this time.

GLASSER: Look, it could be a terrible miscalculation. War, you know, leads to unpredictable consequences. The economic consequences of an invasion would be massive on Russia.

TODD (on camera): As powerful as Vladimir Putin is, analysts say a drawn-out, bloody war in Ukraine would harm his legacy and could even start to threaten his hold on power.

As one expert points out, significant losses from the war in Afghanistan did contribute to the dissolution of the Soviet Union.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

HOLMES: And I will be back with more later this hour, but for now let's turn it back to John in Atlanta -- John.

VAUSE: Michael, thank you again.

Well, at this hour, millions of Americans are under some form of weather alert, with snow, sleet, and freezing rain, from the Northern Plains to the Great Lakes. We'll have a live report from the CNN weather desk in just a moment.

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[00:46:37]

VAUSE: A series of storms will bring a combination of heavy snow to the Northern United States and possible tornadoes to the South. Nearly 25 million people are under some kind of winter storm alert right now. Cold arctic air will stretch as far as Texas.

For the very latest forecast, we're joined by meteorologist Karen Maginnis. This is quite the weather.

KAREN MAGINNIS, CNN METEOROLOGIST: It is -- it's the February surprise. And it's a multi-day event that will impact just about everyone across the United States.

There are a few areas being relatively unaffected, but everything from cold, to blizzard conditions, to flooding, to sharply colder conditions, and we're looking at windchill advisories across the Northern Tier.

These wind chills are going to be down to minus 50 degrees. And we're expecting blizzard conditions with wind gusts maybe around 60 to 70 kilometers per hour.

All right. Here is the troublemaker right here. But that's not the only one. We've got several series of low-pressure systems that will sweep across the interior West, also across the Central Plains, and towards the Great Lakes region over the next several days.

What makes this so remarkable, is that these temperatures are thoroughly interest (ph). Take a look at Myna (ph). Minus 24 right now, but it feels like minus 35 degrees Celsius.

Fargo -- I want to point that out -- is actually minus 21 degrees right now, wind-chill factor minus 35.

Take a look at these images coming out of Castleton, North Dakota. Now this -- or South Dakota. This lies just to the northwest of Fargo, and they saw such blizzard conditions here, the winds were gusting around 60 kilometers per hour. Visibility was near zero. And all day long, that temperature remained below the freezing mark.

There were six injuries reported here. There were about six tractor- trailers that were involved with this. It shut down a portion of that Interstate 95, 94, for some hours.

All right. In the Deep South, it's big thunderstorms, going to produce some violent weather, especially just to the northwest of Dallas. There were some tornadoes reported here, as well. This large-size hail. And John, it looks like this is going to continue, even towards the end of the work week.

VAUSE: Wow. Karen Maginnis, quite the forecast. Thank you for that. We'll take a short break. When we come back, escalating tensions are

only heightening fears of a Russian invasion of Ukraine. Its effect on the country's economy is chilling. We'll have more from local businesses, when we come back.

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[00:52:23]

HOLMES: Welcome back, everyone. I'm Michael Holmes in Lviv, Ukraine. And we want to bring you the latest on these escalating tensions between Russia and Ukraine.

Russian troops could move into Eastern Ukraine any time now, after Vladimir Putin ordered forces into two separatist-held areas. The Russian president signing decrees recognizing the independence of both these Kremlin-backed regions. Here's what he said about the move.

(BEGIN VIDEO CLIP)

PUTIN (through translator): I consider it necessary to make a long overdue decision to immediately recognize the independence and sovereignty, of the Donetsk People's Republic and the Luhansk People's Republic.

(END VIDEO CLIP)

HOLMES: Meantime, Ukraine's president delivered his own address to the nation. Volodymyr Zelensky saying Russia's actions violate his country's national integrity and sovereignty. And Ukraine will not, quote, "give away anything to anyone."

Now, an invasion by Russian forces could have a devastating impact, of course, on Ukraine's economy and local businesses, as well. Some say the escalating tensions are already having an effect.

(BEGIN VIDEOTAPE)

HOLMES (voice-over): Lida Konukh manages a small clothing and souvenir business in Central Lviv, trying to ignore the drumbeat of possible war, echoing around her country.

LIDA KONUKH, STORE MANAGER (through translator): The situation was much better after the new year. But now, you can feel the difference. Less tourists means less business.

HOLMES: Small business operators, like Konukh, say these are tough times. No tourists, and locals are hunkering down. First, it was COVID lockdowns. Now, it's the threat of war keeping the cash register quiet.

KONUKH (through translator): We don't know what will happen. No one knows it. The situation is difficult, for sure. And if you ask what to do if it gets worse? Then my answer is, I don't know. The only thing I know for sure, I will stay here, no matter what. HOLMES (on camera): Now, the pocketbook pain for ordinary Ukrainians

is obvious. And nationally, it is, as well. GDP is down. Investors have fled to the sidelines. Then obviously, an invasion would make everything that much worse.

But experts say, even if Putin's troops stay on the outside, things could be almost as grim, as they apply an economic stranglehold on this country.

TYMOFIY MYLOVANOV, PRESIDENT, KYIV SCHOOL OF ECONOMICS: Absolutely. Because the war is not just, you know, a kinetic or physical action. It's also economic. It's cyber, diplomatic. And, you know, the businesses are suffering now, and the -- they divert in resources from -- from development, from business investments into protecting operations.

[00:55:15]

And so if it continues, there will be -- there will be harassment, there will be damage, and so that's a part of pressure.

DARIA BORYSENKO, STORE MANAGER: Not so many customers. We have -- we are --

HOLMES (voice-over): Daria Borysenko manages a popular burger joint in Lviv. People are still coming in, but she's worried about what might come.

(on camera): Are you worried about how an invasion might affect business?

BORYSENKO: Yes. It's really hard. It's an ecology situation. Not only about food, not only about smiles. That's just a reality right now.

HOLMES (voice-over): Still, like virtually all Ukrainians we meet, she's both stoic and confident in her country.

(on camera): Are you worried about the war?

BORYSENKO: Many of us, yes. But we are staying calm, because we understand. If we were nervous, and come at it with a panic, it will be not good for us.

HOLMES: Like most Ukrainians, nervous, but unafraid.

(END VIDEOTAPE)

HOLMES: And that's all we have this hour. I'm Michael Holmes, live in Lviv, Ukraine.

VAUSE: I'm John Vause here in Atlanta, Michael and I will be back with more news in just a moment. Stay with us. You're watching CNN.

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