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Putin Orders Troops Into Separatist-Held Areas of Ukraine; Oil and Gas Prices Surge on Putin's Actions; Millions Under Winter Weather Alerts Across U.S. Aired 4-4:30a ET

Aired February 22, 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]

(BEGIN VIDEO CLIP)

MJ LEE, CNN WHITE HOUSE CORRESPONDENT: We have gotten indication after indication over the past several days that that road to diplomacy was closing and closing.

UNIDENTIFIED MALE: He calls them peacekeepers. This is nonsense.

BORIS JOHNSON, BRITISH PRIME MINISTER: It's a very ill omen. And a very dark sign.

(END VIDEO CLIP)

MICHAEL HOLMES, CNN ANCHOR: The latest escalation from Russia's President Vladimir Putin has the world on edge. We'll have the global reaction over the Ukraine crisis.

ANNA COREN, CNN ANCHOR: And millions of Americans are in the path of a massive winter storm. It's already bringing arctic conditions across the Midwest and Central U.S. We'll have a live forecast just ahead.

ANNOUNCER: This is CNN breaking news.

HOLMES: And we begin, of course, in Ukraine where the prospect of war appears closer than ever as the world waits for Vladimir Putin's next move. The Russian president has ordered troops into separatist areas of eastern Ukraine after he formally recognized their independence.

And the U.S. and other allies are expecting to respond with new sanctions on Russia in the hours ahead. Now the move also prompted an emergency meeting of the U.N. Security Council and a chorus of outrage from the West. The Kremlin, however, says the troops are going as, quote, peacekeepers. But the U.S. and its allies are not buying that. With the American ambassador to the U.N. calling the claims nonsense.

(BEGIN VIDEO CLIP)

LINDA THOMAS-GREENFIELD, U.S. AMBASSADOR TO THE UNITED NATIONS: In essence Putin wants the world to travel back in time to a time before the United Nations, to a time when empires ruled the world but the rest of the world has moved forward. It is not 1919. It is 2022. We and our partners have been clear that there will be a swift and severe response for Russia to further invade Ukraine.

(END VIDEO CLIP)

HOLMES: Now this video from Russian media shows a military convoy moving through separatist controlled Donetsk. But it is unclear at the moment precisely who that equipment belongs to. You can probably guess. And although it's not known if Russia's moves are a prelude to a full-scale invasion, Mr. Putin appeared to cast doubt on Ukraine's very statehood.

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VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): It is essential to understand that Ukraine has never had a tradition for genuine statehood. And since 1991 it has taken the path of mechanically copying foreign models, torn off both from history and from Ukrainian realities. Political and state institutions were constantly reshaped to suit a rapidly formed clans with their selfish interests that had nothing to do with the interests of the Ukrainian people.

(END VIDEO CLIP)

HOLMES: U.S. officials say Russia's actions are a sign that Moscow is seeking war not diplomacy. CNN's Oren Liebermann explains why.

(BEGIN VIDEOTAPE)

OREN LIEBERMANN, CNN PENTAGON CORRESPONDENT: It appears he is setting up, U.S. officials say, a cause for war. A justification for a further invasion. You don't need 190,000 troops including the separatist forces to declare the independence and your recognition of these two regions. You're only looking at those types of numbers if you're ambitions go well beyond that. If it's for a full-scale invasion, Defense Secretary Lloyd Austin saying just over the weekend, he thinks it's highly likely tanks are rolling through Kyiv, the Ukrainian capital, quite soon.

(END VIDEOTAPE)

HOLMES: Meanwhile, in one of the areas held by Russian backed separatist, people were celebrating Putin's Move but in Ukraine's capital, Kyiv, the President, Volodymyr Zelensky, well, he was unwilling to bend to Moscow's threats.

VOLODYMYR ZELENSKY, UKRAINIAN PRESIDENT (through translator): We are dedicated to the peaceful diplomatic solution and we will follow this and only this path. We are on our land. We are not afraid of anybody and anything. We owe nothing to anybody and we will not give anything to anyone and we are confident about it.

(END VIDEO CLIP)

HOLMES: CNN has reporters all across the globe covering multiple angles to this story. Arlette Saenz is in Washington with reaction from the Biden administration. Scott McLean in Brussels with European reaction. Sam Kiley in Kharkiv in eastern Ukraine and Jim Sciutto will be joining me here in Lviv a little later. Kristie Lu Stout also in Hong Kong monitoring the impact on oil prices and markets.

All right, first let's head to Sam Kiley in Kharkiv and Arlette Saenz in Washington. Arlette let's start with you. Bring us up to date on Washington's position and potential actions.

ARLETTE SAENZ, CNN WHITE HOUSE CORRESPONDENT: Well, Michael, the White House remains on high alert as they are waiting to see what Russian President Vladimir Putin's next moves will be regarding Ukraine.

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Now overnight there was the emergency meeting of the U.N. Security Council where the U.S. and its allies was very forceful of its denunciations of Russia's moves and intentions. The U.S. Ambassador to the United Nations Linda Thomas-Greenfield as saying that the Russian president's recognition of those two pro-Moscow regions in eastern Ukraine as a dependent, that he is essentially trying to set up a pretexts for a further invasion of Ukraine.

Now after Putin made that recognition and after he ordered those troops into those Russian separatist backed regions. The U.S. President Biden signed an executive order implementing very limited sanctions specifically targeted to those regions. Those sanctions essentially would prohibit U.S. trade and investment in those regions. But this is all separate from the wider sweeping package of sanctions that the U.S. has promised to implement along with allies should Russia move forward with a further invasion of Ukraine.

They've been readying that sanctions package for weeks, for months really now promising that it would be severe and the most punishing sanctions that Putin has seen to date. But take a listen to what Deputy National Security Adviser Jon Finer had to say about other potential measures the U.S. could be implementing in the coming days.

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JON FINER, WHITE HOUSE PRINCIPAL DEPUTY NATIONAL SECURITY ADVISOR: We've also said that we plan to take additional actions tomorrow in terms of what is actually happening on the ground in the Donbas region of Ukraine. We have seen reports but we are basing our actions on what Russia actually does, not the statements that Russia makes. We're going to continue to assess overnight any steps that Russia takes and we will be prepared with a significant response tomorrow.

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SAENZ: So, the U.S. watching very closely what exactly Putin is giving orders to his military to do. Now one thing that is notable is that the White House so far has declined to say whether troops, those so- called peacekeeping troops who are heading into the Donbas region, whether that would constitute and define a further invasion of Ukraine. That is something that language, further invasion of Ukraine, is essentially what is believed to trigger those larger sanctions from going into effect. So far, the White House has not said what is happening right now on

the ground, if that does constitute a further invasion. So, we'll wait to see whether we get any further update as measures are expected to be implemented at some point later today.

HOLMES: Yes, in this situation words and definitions do matter. Arlette Saenz, thanks so much. Sam Kiley in Kharkiv. What's your read on this situation? And any reaction from Ukrainians?

SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, the Ukrainians have stuck to their line as you say in their intro there, Michael. President Zelensky's insisting that there has to be a diplomatic solution to this. That the Ukrainian forces are knocking to get goaded into some kind of conflict that could provide a pretext of further invasion by Putin's forces.

But this really goes to the crux of the issue and it's why it has been possible for the Russian state to salami slice chunks of Ukrainian territory off in the past. They've already sliced off and annexed the Crimea peninsula. Completely illegally under international law. That is now part of Russia. They have unilaterally decided that these two so-called breakaway republics in Luhansk and Donetsk have been declared independent and recognized by the Kremlin. Thereby allowing for what is by any definition, Michael, an invasion of sovereign territory.

What is interesting here is that the Biden administration and we're hearing similar sounds coming from the Europeans, are fiddling around with the definitions because they are still in the view of the Ukrainians, being pusillanimous in their response. Remember, that this is a country, Ukraine, that it was not until very recently even allowed to get ahold of lethal military aid in order to defend itself during a year period of war which is ongoing and expanding.

The real question for the Ukrainians now, is to what extent is this the limit of Putin's ambitions in the east of the country. Because of course, Luhansk and Donetsk provinces extend currently into Ukrainian government territory. Is it, for example, the position of the Russians that both of those Luhansk and Donetsk are independent territory as recognized by the Kremlin and therefore legitimate targets for further invasion by Russian tanks?

And therefore, at what point will the international community actually acknowledge that Russian tanks have crossed the Ukrainian border. And these are absolutely extraordinary from the Ukrainian perspective and I imagine were going to hear very loud comments about this as this began to sink into the Ukrainians that both the United States and the Europeans, frankly, are pussyfooting around these definitions. Which are, frankly, absurd from the perspective here in Kharkiv.

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HOLMES: Yes, indeed. Define invasion. One imagines it's foreign boots crossing on to a sovereign nation's territory. Sam Kiley, appreciate it. Thanks so much. All right, let's bring in Ukrainian political analyst Taras

Berezovets. He joins me now live from Kyiv. Your read on this as we were just discussing their with Sam Kiley? When is an invasion an invasion?

TARAS BEREZOVETS, UKRAINIAN POLITICAL ANALYST: Yes, good morning, Michael, thanks for having me. I think the most important thing from yesterday is that Mr. Putin now has asked his own curiosity if we're on the brink of World War II in part (INAUDIBLE) created the state of Manchuria. That's exactly what Vladimir Putin did yesterday to so- called Luhansk and Donetsk People Republics.

In terms of Putin's aggression, it means, well actually, two basic scenarios. The best is that Mr. Putin will be satisfied recognizing independence of so-called people's republics. Meanwhile, as Putin troops already moved on a conflict with Ukrainian arms forces and there won't be any sort of escalation. And second scenario, worst case scenario means that Vladimir Putin and the Russian forces will try to adapt the forces because in so-called (INAUDIBLE) of the Donetsk and Luhansk people's republics. It's the reason that the borders of these so-called republics should be enlarged to the administrative border of Donetsk and Luhansk.

Effectively meaning that Russian forces and the separatist backed forces should attack the Ukrainian army. Anyway, Vladimir Putin I think recognized this (INAUDIBLE) and political (INAUDIBLE). What do I mean by that, Michael? I mean that his idea, his goal was to persuade Ukraine to accept the Donetsk and Luhansk as autonomous republics within Ukraine. Giving them rights of (INAUDIBLE) or for instance of choosing NATO or European Union integration. By I would imagine that independence Vladimir Putin now recognized this.

HOLMES: I'm curious, in the short to medium term, let's just say the short term, do you think he's going to stay put? Or do you think as Sam Kiley was saying, he will continue to slice off more and more of Ukraine little by little when the world is perhaps not paying as much attention a few months from now?

BEREZOVETS: Absolutely. Absolutely, Michael. I think this is a strategy of Vladimir Putin. He will be looking very closely on the steps of U.S. administration and what European Union will be doing after what happened yesterday. And in a sense Vladimir Putin doesn't see anyone in the world apart from the United States. He doesn't hear at all what the European countries are doing. But if he sees that sanctions imposed by U.S. administration would be insufficient, and yesterday we saw that President Biden decided to impose sanctions against the so-called DNR and LNR, but still no sanctions against Russia and Russian economy.

So, if he sees these sanctions as inefficient, he will be definitely trying to invade Ukraine, trying to get as more pieces as possible. From his perspective Russian troops now moved on Ukrainian border, has a very strategic position to attack Ukrainian cities, especially the biggest city in the Donbas Mariupol. We have more than 700,000 people. And from his perspective Russian forces can invade at any point. HOLMES: Yes, Mariupol a very key strategic city and very much in the spotlight at the moment. We're pretty much out of time. But I wanted to ask you about the optics. It was striking in the video of Putin Security Council meeting. How subservient everyone there looked. They were meek. They certainly weren't challenging the leader. Is there anyone in Moscow, in the Kremlin, who speaks truth to Putin? Who would dare to say, no, this is a bad idea Mr. President?

BEREZOVETS: You know, it is funny now, Michael, to watch Vladimir Putin to behaviors himself as a schoolteacher. And all the members of Russia, the whole security council behaving like first grade pupils in a school. It was very funny. But still to me, there was a lot of scary things in Vladimir Putin's speech while he delivered Russian in nearly one hour's speech, his reference about Ukrainian which he didn't bring advice it was an independence day.

[04:15:03]

And then answering your question, are there any sort of opposition within family of Mr. Putin? I don't think so really. I think everybody yesterday was playing his role and there were some (INAUDIBLE) for instance head of Russian foreign intelligence. He has said, we are going to accept these territories as a part of Russia. And Vladimir Putin replied, no way we're talking about this. But this is exactly what Vladimir Putin going to do before presidential elections. So, the next step the (INAUDIBLE) of independence, would be annexation of Russia's borders like what happened with Crimea.

HOLMES: Yes, yes. Taras Berezovets always great to get your perspective. Thanks for making the time.

All right, let's go ahead and toss it back to Anna Coren in Hong Kong. I'll be back a bit later -- Anna.

COREN: Thanks, Michael. Appreciate it.

Well, still ahead, Russia's latest move. The rattling global markets. We're live in Hong Kong with the latest. That's next.

Plus, millions of Americans under some form of winter weather alert. Snow, sleet, freezing rain from the Northern Plains to the Great Lakes. A live report from CNN weather desk is coming up.

(COMMERCIAL BREAK)

COREN: Welcome back. The escalating tensions between Russia and Ukraine continues to rattle investors and markets around the world. We're still hours away from the opening bell on Wall Street and already we're seeing these swift reaction among stock futures. And now on European markets. Oil and natural gas prices are also on the rise. Russia is of course one of the world's top oil and natural gas exporters.

Well, CNN's Kristie Lu Stout joins us now live from Hong Kong. And Kristie, tell us how are global markets reacting to what many believe is an imminent Russian invasion of Ukraine? KRISTIE LU STOUT, CNN CORRESPONDENT: Well, Anna, global stocks are

stumbling upon the news that the Russian President Vladimir Putin has ordered his troops to enter this pro-Moscow separatist region of eastern Ukraine. In Europe, markets there have fallen sharply since the open.

We'll bring up the latest data for you. And if you look at that, you will see a sea of red. The FTSE 100 down 1/3 of 1 percent. The Xetra Dax losing .6 of 1 percent. The Paris CAC down 1/3 of 1 percent. The Zurich SMI losing 9/10 of 1 percent.

Meanwhile, here in Asia we're nearing the end of a trading day. But again, you see a portrait in red. The Nikkei lost 1.7 percent. Seoul Kospi down 1.35 percent. The Shanghai Composite lost close to 1 percent. Here in Hong Kong the Hang Seng down about 2.7 percent. I should also add that concerns with additional restrictions from the tech sector have always weighed on the markets in China.

And also today from Asia, we've been monitoring this that you're seeing on your screen. U.S. futures and they all indicate a lower open when Wall Street reopens. Of course, on Monday, it was the Presidents' Day holiday. As you can see quite clearly there, Dow futures losing over 1 percent. Nasdaq futures down 3.2 percent. S&P 500 futures down almost 2 percent.

Now on Monday we heard from the White House. In a statement it said that U.S. President Joe Biden plans to impose sanctions on those pro- Moscow separatist regions in eastern Ukraine. That has helped to bring the price of crude oil up higher. There was so much volatility out there. There's so much uncertainty out there in regards to Ukraine and beyond. It does not bode well for global markets.

We have a couple statements I want to share with you that provides some context here. The first one is from Craig Erlam, a senior market analyst at Oanda. And he says this, quote, it feels like the situation in regards to Ukraine can dramatically escalate at any moment and that's going to keep investors on edge for now. We may well be on the brink of something terrible happening and that's continuing to feed into the negativity in the markets, unquote.

And finally, we heard from Damian McCullough, the head of Fixed Income Research at Westpac. And to CNN he offers this, quote, I do think it's as much of 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, unquote.

Sure enough, the crisis in Ukraine, all the uncertainty has brought up the price in gold as well as treasury bonds, as investors scramble to find that safe haven out there. Back to you -- Anna.

COREN: Kristie, we appreciate all that information. Many thanks.

Nearly 25 million people across the U.S. are under some sort of winter storm alert. And it's already causing major issues. Well, this was the scene in Oregon on Monday. Around 100 vehicles have been involved in crashes on Interstate 84 according to the Oregon state police. The storm bringing not just ice, snow, sleet and arctic like winds,

but also tornadoes. For the latest forecast we're now joined by meteorologist Karen Maginnis. Karen, good to see you. Many folks bracing for the polar plunge.

KAREN MAGINNIS, CNN METEOROLOGIST: Anna, we thought we could get through most of the winter without a significant event like this, but this one has such deep impact all across the United States with rare exceptions. Most of the country either seeing blizzard conditions, excessive rainfall, the threat of tornadoes, or heavy snowfall, or gusty winds. It is phenomenal to see a system quite this large this late in the season.

Here's that weather system I was talking about. It separates a very entrenched arctic air from the milder weather ahead of it. What is so strange and unusual is to see a place like Dallas, Texas, this time of year reporting 85 degrees. That's not normal. But it was 85 degrees Fahrenheit in Dallas. And guess what happened? Well, here's that frontal system. This is a future cast on the radar. Thunderstorms erupt across the Tennessee Valley, Ohio River Valley. And we probably will see perhaps a couple of tornadoes here, hail, high winds.

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But then look what develops across Dallas. Dallas is looking at ice coming up over the next couple of days. But it also spreads into Oklahoma City. And the further north you go, the colder it becomes. So desperately cold with wind chill factors minus 50 degrees or so. That is just almost unbearable.

Take a look at what happened near Fargo. This is just to the west of Fargo, North Dakota, along Interstate 95. The first responders here, well they were trying to extract people from the vehicles that collided on Interstate 94. It was miserable. The visibility was very poor. Less than a quarter of a mile. And the wind chill factor, well the thanks to nearly 40 miles an hour winds. All right, in Fargo it's -7 right now without the wind chill. The windchill is -32.

Out ahead of the front, still some places in the Southeast are looking at temperatures that will be very mild for this time of year. But behind it, much colder air, that arctic plunge. Anna, we didn't really expect to see anything stay quite this expansive. But here we are. Also seeing the impacts of Southern California. They're saying that some of the coldest air that they've seen of the season. Back to you.

COREN: Extraordinary, best to stay indoors. Karen Maginnis many thanks.

Ukraine is projecting calm and confidence as Russia orders troops into separatist regions and extends its drills. We'll have the latest condemnation from Kyiv and Western powers.

Plus, we look at what an invasion into Ukraine would look like and the vast fire power in Russia's arsenal.

(COMMERCIAL BREAK) HOLMES: Welcome back to CNN NEWSROOM, everyone. I'm Michael Holmes in Lviv in western Ukraine.

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