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Biden Administration Issues New Sanctions On Moscow; Russian Forces Stand Ready Near Ukraine As Tensions Mount; Germany Halts Nord Stream 2 Gas Pipeline From Russia. Aired 12-1a ET

Aired February 23, 2022 - 00:00   ET

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


(COMMERCIAL BREAK)

[00:00:13]

MICHAEL HOLMES, CNN ANCHOR: Hello everyone, I'm Michael Holmes live in Ukraine with new evidence that Russia is moving even more military forces along the border here.

JOHN VAUSE, CNN ANCHOR: I'm John Vause at CNN's world headquarters with the very latest on Western sanctions imposed on Russia and why they're unlikely to prevent Vladimir Putin from ordering a full-scale invasion of Ukraine.

HOLMES: Welcome, everyone, the window for diplomacy appears to be shrinking as Russia escalates its military threats over Ukraine. New video showing more Russian military vehicles arriving near Ukraine's border.

So far, CNN cannot confirm that any troops have actually crossed into Ukraine but E.U. and NATO officials say Russian forces have already arrived and new satellite images showing more Russian troops and military equipment deployed to the Ukrainian border.

U.S. President Joe Biden calling it "the beginning of a Russian invasion", as the U.S. announced a new round of sanctions to punish Moscow. The E.U., U.K. and other U.S. allies have all announced similar measures. Germany also halting certification of a valuable gas pipeline that would send fuel directly from Russia to Western Europe.

Meanwhile, the top U.S. diplomat has now canceled a meeting with his Russian counterpart. Though the White House says the door to diplomacy is still open. But that might not matter much to the Kremlin.

On Tuesday, Russian lawmakers giving the green light to send troops abroad and Russian President Vladimir Putin saying the Minsk agreement which was designed to end armed conflict in Eastern Ukraine, "no longer exists".

(BEGIN VIDEO CLIP)

VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): The Minsk agreements were killed long before yesterday's recognition of the People's Republic of Donbas and not by us, not by representatives of these Republics but by the current key of authorities.

(END VIDEO CLIP)

HOLMES: Mr. Putin also increased support for Russian backed separatists in Eastern Ukraine, saying Russia recognizes the independence of the entire Donetsk and Luhansk regions, even though separatists only control a portion of that.

Now, Ukraine's president, meanwhile, says he's calling up reservists for military training, but holding off on a general mobilization for now, saying he does not believe there will be full-scale war with Russia.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKY, UKRAINIAN PRESIDENT (through translator): With regards to being on a military footing, we understand that there will be no war. There will not be an all-out war against Ukraine, and there will not be a broad escalation from Russia. If there is, then, we will put Ukraine on a war footing.

(END VIDEO CLIP)

HOLMES: CNN's Matthew Chance is in Kyiv with the latest on Russia's troop movements, and how the West is responding.

(BEGIN VIDEO CLIP)

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): Disturbing movements in Donbas, the rebel areas of Ukraine now recognized by Russia as independent states, where Russian forces have been ordered to maintain peace. It's still unclear if fresh Russian hardware has moved in. But unmarked military vehicles, including these tanks and armored personnel carriers have been spotted on the outskirts of the main rebel city, if Moscow hassled within more troops to be seen as yet another hostile act.

Already there's been strong condemnation by the U.S. president of Russia's recognition of the two Ukrainian rebel areas. The Biden administration issuing new economic sanctions on Moscow.

JOE BIDEN, PRESIDENT OF THE UNITED STATES: Who in the Lord's named as Putin think gives him the right to declare new so-called countries on territory that belong to his neighbors. This is a flagrant violation of international law and demands a firm response from the international community.

CHANCE: The self-styled People's Republics of Donetsk and Luhansk, both backed by Moscow were born after the bitter fighting of Ukraine's brutal war. Problem is they control a much smaller area of Donbas than they claim. Ukrainian cities like Kramatorsk and Mariupol are run by the Ukrainian government but are located in territory the separatists say is theirs.

The concern is the newly recognized and emboldened Republics backed by Russian forces could launch a new offensive to capture more land, especially now that Kremlin sponsor says he supports all their territorial claims.

[00:05:06]

PUTIN (through translator): The best solution for our colleagues in Western countries not to lose face would be if the current Kyiv authorities refused to join NATO and essentially maintain neutrality.

CHANCE: But with tens of thousands of Russian forces still poised near Ukraine's borders, like these observed by CNN, there's little sign of that compromise being made.

Already, the U.S. several of its allies have imposed new sanctions on Russia, notably Germany, putting on hold the Kremlin backed Nord Stream 2 gas pipeline, the decision to suspend the strategically important project, which would massively boost supplies of Russian energy to Europe has drawn immediate scorn from Moscow.

Welcome to the brave new world tweeted a former Russian president and close Putin ally, where Europeans will very soon pay thousands of dollars for their gas. A snarky reminder that sanctions can cut both ways.

But as President Biden says, freedom comes at a cost. For the U.S. and its allies, the focus now is simply trying to stop Russia in its tracks.

Matthew Chance, CNN, Kyiv.

(END VIDEO CLIP)

HOLMES: All right, let's bring in CNN White House reporter Jasmine Wright now, she joins me live from Washington.

So, Jasmine, give us more detail about the sanctions levied and what might be yet to come?

JASMINE WRIGHT, CNN WHITE HOUSE REPORTER: Well, this as President Biden's first steps, he says in trying to both punish Russia for their aggressive action, but also trying to deter them from doing any more aggressive action in Ukraine.

And so, this is what he called a first tranche of sanctions, really targeting sovereign -- Russian sovereign debt, financial institutions, two of them, Russian elites and their family members.

And the point that the President made today in that speech at the White House, he said, is to cut off Russia's government from Western baking. And now this comes after officials for months have really for warned that punishing economic consequences would come from Russia, should they do what officials now say that they are which is beginning that invasion, and they said that they would be high impact. So, that's what some of these sanctions that the President announced today are.

Now, he also warns that should Russia continue down this path of aggressive action, there are more sanctions for them that are, you know, for lack of better words, basically, in the U.S.'s pocket ready and willing to be placed on Russia should it continue.

But the President also said that he continues to hope for a diplomatic outcome and that is after of course he condemned as we saw in Matthew Chance's piece there condemned President Putin for acknowledging or declaring independence of those two pro-Kremlin backed territories, as well as saying that there is more territory for them to take beyond what those separatists already hold.

And now, so the President wants diplomacy but it kind of is hard to see exactly what that looks like, especially after Secretary of State Antony Blinken announced just a few hours ago that he would be canceling his meeting on this Thursday with his Russian counterpart Lavrov, because that meeting was conditioned on the fact that Russia should not invade and of course, we know this new language in the White House says an invasion -- Russian invasion into Ukraine is now beginning.

HOLMES: All right, Jasmine, thank you, Jasmine Wright there in Washington for us.

CNN Military Analysts retired General Wesley Clark joins me now from Little Rock in Arkansas. He's a former NATO allied Supreme Commander and a senior fellow at the UCLA Burkle Center. Thanks so much for being with us, General.

From a military standpoint, there are still signs, of course that the Russian movement of troops and materiel is pointing to a broader invasion. Is that your sense that's likely or perhaps might Putin stop in place, at least for now?

GEN. WESLEY CLARK (RET.), CNN MILITARY ANALYSTS: I think it's a 50-50 call right now. Those troops are there. They're ready to go. I think the Russian generals or maybe Putin himself are a little bit cautious. I think the Ukrainians are going to fight really hard.

So maybe, the Russian plan is this, they bring their troops into Donbas, then they and the separatists claim that they can attack and seize the land they claim to own out to the provincial boundaries, the old lost (PH) boundaries that draws in the Ukrainian forces, they have to fight for that.

And then maybe the idea is after the Ukrainian forces get ground up a little bit, exhausted, used up a lot of their ammunition, takes some casualties. Then the Russian sweep in from the North or the South. Cut them off and circle them and then go on to Kyiv, that would be a classic Eastern European battlefield plan.

[00:10:11]

HOLMES: Given the imbalance between the two militaries, do you think the Ukrainians have been preparing to transition from a traditional force to an organized resistance and insurgency if the Russians do move past the existing line of contact?

CLARK: Well, I think it's going to be an urban insurgency if you see an insurgency, this is pretty open country, and it's not Afghanistan. So, you're not going to have a lot of mountains and high altitudes and that kind of bad weather to hide in. Yes, there's some wooded areas. There's some smaller towns, but basically, this is going to be an urban fight.

And so, I think you're going to see some long-range tank engagements, a lot of artillery use initially. And then, the Ukrainian forces are going to fall back to the West, if they're not encircled, or they're going to go into urban areas and hold out in urban areas, assuming they don't stop the Russians cold. They might, it depends on how effective Russia uses its hypersonic missiles, and its aircraft and air superiority.

HOLMES: Either way, it's going to be messy if it happens. And if Russia just says, you know, as they are saying, go ahead and sanction us and they feel that they can endure that. Apart from sanctions, what's the West going to do about it?

CLARK: Well, I think, as President Biden said, we're going to keep Ukraine in the fight as best as we can, by continuing to strengthen their defensive capacity but we're going to I'm sure ratchet up those sanctions until Putin is forced to leave and obey international law.

That's the only remedy that we have without engaging in a big war. I don't think we want to fight a big war with Russia now, although it might be forced on us by the Russians. But it's certainly not NATO's choice, it's not the President's choice. He says the path is open for diplomacy but for that, Russia has to deescalate and they have to move out of those territories with their separatists.

They killed the Minsk agreement, which was a diplomatic off ramp for Mr. Putin. So, he needs to rethink that I -- that would be my advice to him.

HOLMES: And again, militarily in the kinetic sense, I mean, this could be hugely problematic for the Ukrainians in the Donbas there, if the separatists continue shelling Ukrainian forces, I think there are 80 ceasefire violations yesterday.

And if the Ukrainians actually then defend themselves and fire back that, of course, could give the "peacekeepers" the reason they need to move forward. So, how restrained do the Ukrainian forces need to be even if the shells are raining down?

CLARK: You know, the Ukrainian forces have shown excellent restraint thus far, they know what the game is. And they know that the separatists or Russians are seeking a provocation.

Now, with the Russian forces in there, if the shelling becomes highly targeted, very destructive, it may be necessary for the Ukrainians to do something but it will only be done by the Ukrainians for defensive purposes. The provocation again, has to be made very clear. This is entirely a crisis of Putin's making.

Going back eight years ago, or 8-1/2, really, when the Ukrainians decided they wanted to be with the West, their leader, one of them in Moscow, they don't want to be under the corrupt autocratic rule of Moscow. They know what it means. They know that list that's out there. They know there's a list out there and the Russians have made clear that they're going to go in there. They're going to have their way if they take it over, and they'll assassinate a lot of people and clean it up, so that there's no resistance. That's the Russian way.

It's not international law. It's international criminality. And the Ukrainians don't want any part of it. So, they're going to hang tough, they're going to be restrained, but they will defend their territory.

HOLMES: General Wesley Clark, great to be able to tap into your expertise. Appreciate you taking the time.

All right, CNN's Frederik Pleitgen is in Southern Russia monitoring the country's military movement near the border. He's also meeting some Donbas evacuees in Russia who say they're grateful President Vladimir Putin is intervening in Ukraine. Here's more from Fred in the Russian city of Rostov-on-Don.

(BEGIN VIDEO CLIP)

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): Russian forces near Rostov advancing towards Ukraine's border, moving columns of artillery pieces and tanks towards the separatists- controlled areas called the Donbas, recently recognized by Vladimir Putin.

[00:15:02]

PLEITGEN: The Russian leader coy when asked if his forces had already crossed the border, and just how far they might advance.

First, I didn't say that the troops would go there right after our meeting with you here. That's the first thing he says.

Secondly, it's impossible to predict any specific outline of possible actions at all. It depends on the specific situation that is developing on the spot.

We traveled to the Russian region bordering Donbas and saw soldiers all around, including long columns of troop carriers and heavy armor standing ready.

The area close to the border with Ukraine on the Russian side is teeming with military equipment. We've seen armor. We've also seen self-propelled artillery as well. The U.S. says it believes that this could be a sign that a larger offensive could be looming, even as Moscow says it has no such plans.

Russia has greenlighted troop deployments to the separatist areas, a clear breach of international law, NATO says.

JENS STOLTENBERG, SECRETARY GENERAL, NATO: Moscow has now moved from covered attempts to deep stabilize Ukraine to overturn military action. This is a serious escalation by Russia.

PLEITGEN: Russian authorities say tens of thousands of Donbas residents have been evacuated to this area in Russia. Some we talked to praised Vladimir Putin for intervening in Ukraine.

We are very grateful that this happened. If he helps us now, we will live normally and free, this woman says.

And she says, of course, we are happy. The entire camp didn't sleep all night. We watched it live, everyone was happy. And we even had a celebratory tea party in one of the camp buildings.

But the enthusiasm could be short lived, as the U.S. says Putin's moves to infringe on Ukrainian territory could be the prelude to a bloody, devastating war.

Frederik Pleitgen, CNN Rostov-on-Don, Russia.

(END VIDEO CLIP)

HOLMES: Now, we have heard a lot from world leaders about the crisis in Ukraine. But what are the people in Ukraine and Russia have to say about that?

CNN has just released the results of an exclusive poll carried out in both countries from February 7th to February 15th.

Now, first, the polls ask Russians and Ukrainians if it would be right or wrong for Russia to use military force to accomplish various goals. To prevent Ukraine from joining NATO, 50 percent of Russians polled say it would be right to use military force, 25 percent said wrong.

Meanwhile, 70 percent of Ukrainian said it would be wrong, just 13 percent said right. Not surprising, really.

Now, how about using force to reunite Russia and Ukraine? A plurality in both countries say it would be wrong. 73 percent of Ukrainian say so, 43 percent of Russians but more than a third of Russians actually said it would be right.

Now, both Russians and Ukrainians think their countries should be separate nations, just one in 10 Ukrainian say the two countries should be one but a third of Russians say so.

Nearly two thirds of Russians believe that Russians and Ukrainians are one people, while two thirds of Ukrainians believe the opposite that they are not one people.

And you can see much more of that exclusive poll on CNN.com, an important indicator of how people are feeling in this region.

I will be back with much more from Ukraine at the bottom of the hour. For now, let's go back to John Vause in Atlanta, John.

VAUSE: Michael, thank you. We'll see you back here in a moment. In the meantime, we'll take a short break.

When we come back, we'll take a closer look at the Western sanctions being imposed on Russia. And whether or not these sanctions are strong enough to stop Vladimir Putin and his march into Ukraine. (COMMERCIAL BREAK)

[00:21:10]

VAUSE: The West has been quick to condemn Russia's actions in Ukraine and has imposed a broad range of new economic sanctions, which stopped short of impacting current oil and gas exports from Russia to what a jump in energy prices.

Two large Russian banks will no longer be allowed to do business in the U.S., both have a key role in Russia's defense industry.

Russia says U.S. sanctions will hurt global financial and energy markets and ordinary Americans will also feel the consequences.

The U.K. has announced it will freeze the assets of five Russian banks and the assets of three Russian billionaires who will also be hit with U.K. travel bans. Australia and Canada have taken similar measures.

The 351 lawmakers of the Russian law house, the Duma who voted in favor of recognizing the independence of the two separatist regions in Ukraine have all been sanctioned by the E.U. and Germany has put the controversial Nord Stream 2 gas pipeline on hold by delaying regulatory approval to bring the multibillion dollar project online.

Germany's decision to put Nord Stream 2 on hold has drawn ongoing praise from Ukraine, Washington and NATO, but also, a sigh of relief.

For weeks, the German Chancellor (INAUDIBLE) when it came to using the pipeline as leverage against Russia. Still, this announcement does not mean the project has been scrapped.

CNN's Nina dos Santos details.

(BEGIN VIDEO CLIP)

NINA DOS SANTOS, CNN CORRESPONDENT (voice over): Nord Stream 2 is vast, stretching about 750 miles under the Baltic Sea, it's the longest underwater gas pipeline in the world.

Together with Nord Stream 1, the route promises to bring 110 billion cubic meters of gas a year from Russia to its biggest customer, Europe via Germany.

Vital supply line for one side and a vital source of income for the other. It could be worth $15 billion a year by the state owned Russian energy giant Gazprom.

But Nord Stream 2 also came with a hefty geopolitical cost by bypassing existing gas routes through Ukraine, it heightens Russian leverage in the region.

OLAF SCHOLZ, GERMAN CHANCELLOR: But no certification of the pipeline can now take place. And without the certification, Nord Stream 2 cannot go into operation. DOS SANTOS: Following Vladimir Putin's order to send troops into separatist held parts of eastern Ukraine, the German Chancellor Olaf Scholz, said that the risk of Nord Stream 2 is too great, much to the relief of several E.U. members, the United States and other countries who have opposed the pipeline since its inception in 2015.

URSULA VON DER LEYEN, PRESIDENT, EUROPEAN COMMISSION: Nord Stream 2 has to be assessed in light of the security of energy supply for the whole European Union. Because this crisis shows that Europe is still too dependent on Russian gas.

DOS SANTOS: Holding the project is one of the toughest moves that Germany could make. But the decision to block it came at the 11th hour.

Ukraine's former acting energy minister and CEO of its state-owned NAFTA gas company told CNN that the move will limit Russia's ability to abuse the European gas market.

YURIY VITRENKO, CEO, NAFTOGAZ: There is no direct connection between Nord Stream 2 and gas supplies and the moment to Europe because Nord Stream 2 is not operating.

DOS SANTOS: Russia seems to be saying that Europe needs to get ready to endure very high gas prices now as a result, do you think that that will be the case?

VITRENKO: I don't think that Gazprom and Russia in general, at this point, can decrease flows of gas to Europe. So, that's a bluff. And somebody call -- needs to call this bluff and that's exactly what Germany is doing at the moment.

DOS SANTOS: The E.U. relies on Russia for over 40 percent of its gas imports. As such, it's a tough habit to kick. Scholz's predecessor Angela Merkel championed the project, arguing that it was a necessary step away from other forms of energy, like coal, especially after she turned her back on nuclear power a decade ago.

[00:25:01]

DOS SANTOS: Putin on Tuesday pledged not to interrupt Russia's gas exports, not to turn the taps as the E.U. turns up the diplomatic heat.

Nina dos Santos, CNN, London.

(END VIDEO CLIP)

VAUSE: Josh Rogin is a CNN Political Analyst and columnist for the Washington Post. He joins us this hour from Washington. Josh, welcome back.

JOSH ROGIN, CNN POLITICAL ANALYST: Great to be with you.

VAUSE: OK, so let's start with Nord Stream 2, the fully constructed but yet to receive regulatory approval gas pipeline from Russia to Germany. Does it matter that the German Chancellor announced the project was essentially put on hold and not scrapped altogether?

ROGIN: Well, it depends on who you talk to. I spoke with several Biden administration officials tonight, who praise that move is a step in the right direction towards holding Putin accountable for his aggressions, and also, towards getting Germany on board with more punitive measures.

But in Congress and in other parts of Washington, there's a lot of skepticism because the move was only a suspension, and not a cancellation. There are calls for the administration to impose additional sanctions on Nord Stream 2. But for right now, the Biden administration is prioritizing unity amongst the U.S. and European allies over harsher measures. And they feel like that's enough for now.

But you know, as Putin's aggressions get worse and worse, I think that incrementally punishing Nord Stream 2 will become in and of itself an untenable position.

VAUSE: You and I talked last week about German wavering when it comes to using Nord Stream 2 as leverage against Russia. So, is it surprising this move by the German chancellor, especially coming at a time when the cost of natural gas in Europe is about three times higher compared to a year ago? And Nord Stream 2, if it came online, potentially could brought those prices down.

ROGIN: Potentially, but you know, the fact is that the shortage of gas in Europe is not a result of lack of capacity, it's a result of Putin's coercive and punishing energy strategy.

In other words, they could turn -- they could give Europe as much gas as it needs if they wanted to, but the Russians are holding it back in order to drive the prices up and in order to screw with us all.

So, you know, Nord Stream 2 or no Nord Stream 2, the energy games that Putin is going to play are going to hurt Europe and the sanctions will have blowback. So, it's really not about Nord Stream 2. Nord Stream 2 is a symbol, it's a symbol of -- for first of all, Germany's willingness to acquiesce to Russian pressure and to move closer to Russia and its Look East policy.

Now, it's a symbol of the thing that we're doing now, which is to pull away from Russia. But either way, the actual pipeline itself doesn't really make a big difference in the situation one way or the other.

VAUSE: If Russia has been bracing for financial sanctions of massive consequences, it seems these new sanctions that have been announced by the U.S., the E.U. and others are a bit like weak tea, even Nord Stream 2, you know, symbolism.

ROGIN: Well, I totally agree. I mean, first of all, the three major oligarchies that were sanctioned today by the by the Biden administration, they were already sanctioned. Now, we're sanctioning them and their sons, OK, well, that's incremental, at best, you know.

And the bank sanctions will have some effect, but they leave a lot of pressure on the table. But I think what everybody is sort of realizing is that -- is that when you have a system like Russia, under Vladimir Putin, he's not going to feel the pain, right?

Even if you sanction the banks, even if you punish the Russian people, even if you punish the oligarchs, Putin may not care about any of that at all. So, we may be just telling ourselves a story about how this pressure is really going to change this calculus.

But if we look at all of Putin's actions, it seems like he's not deterred at all, it doesn't seem like he's feeling the pressure at all. So, we do a lot of these sanctions to make ourselves feel good about responding to Putin's aggressions. But their system is not like our system. It's not like here where you sanction a bunch of things, and the people get angry, when Putin's people get angry, he just crushes them or ignores them.

VAUSE: Yes, after making a move Putin waits, he will then assess what the response to that move has been, and then calibrate his next move accordingly.

So, if you look at the sanctions so far, and look at everything that's been done, there seems little in all of this, which would deter him from pushing on with the full-scale invasion.

ROGIN: Well, that's exactly right. Now, Putin always leaves himself with a few options, right? And he has an option that if he faced stiff resistance would allow him to withdraw pretty quickly is an option if he faces beating resistance still have him stay put. And he has an option and he faces little resistance to keep pressing forward and maybe, you know, push devastating slaughter and destruction on the people of Ukraine and in the city of Kyiv.

That's what the Biden administration thinks is going to happen. I talked to a senior Biden administration official just an hour ago and she said they think he's going to go for the full invasion now.

That should be an indication that the pressure is not enough. That should be an indication that the deterrence is failing, as you just said, but it doesn't seem like the West can muster up any stronger response, at least not in a unified fashion, at least not at this time.

VAUSE: Well, I wonder when if ever. Josh, thank you. Josh Rogin there, appreciate your time.

ROGIN: Anytime.

[00:30:04]

VAUSE: Still ahead, Vladimir Putin has given the order for Russian troops to move into Eastern Ukraine. But is this an invasion? Is this the start of an invasion? It depends on who you ask.

(COMMERCIAL BREAK)

MICHAEL HOLMES, CNN INTERNATIONAL ANCHOR: Hello, everyone. I'm Michael Holmes in Lviv, Ukraine.

The U.S. president, Joe Biden, calling it the beginning of a Russian invasion of Ukraine, although it is not yet clear if any Russian troops have actually moved across the border.

The U.S. and other western countries have hit Moscow with the first round of economic sanctions, meanwhile, making it clear that a further invasion will bring more punishment.

Russia's ambassador to the U.S. says the sanctions will hurt global, and financial, and energy markets, as well as ordinary Americans. Meanwhile, new satellite images show Russian forces and military equipment in Belarus and parts of Russia moving closer to the border with Ukraine, include vehicle convoys, dozens of military tents, even a field hospital.

Now, the Russian president, Vladimir Putin, says his recognition of independence for Ukraine's Donetsk and Luhansk republics. It stems to the entire region. And that is significant.

Currently, the pro-Russian sectors control only the areas you see shaded there on the map. Now, Russian Foreign Minister Sergey Lavrov, will he use some creative reasoning to explain why Russian forces are moving in?

(BEGIN VIDEO CLIP)

SERGEY LAVROV, RUSSIAN FOREIGN MINISTER (through translator): I don't think anyone can claim that the Ukrainian regime, since the 2014 coup d'etat represents all the people living on the territory of the Ukrainian state.

What happened in Crimea, what happened in Eastern Ukraine, shows how much the government, this regime was rejected by millions of Ukrainians at that time.

(END VIDEO CLIP)

HOLMES: America's top diplomat has canceled a meeting with Sergey Lavrov, which would have been scheduled for Thursday. Antony Blinken meeting on Tuesday with his Ukrainian counterpart in Washington.

He says Russian President Vladimir Putin's intentions towards Ukraine have been clear the entire time.

(BEGIN VIDEO CLIP)

ANTONY BLINKEN, U.S. SECRETARY OF STATE: His plan all along has been to invade Ukraine, to control Ukraine and its people, to destroy Ukraine's democracy, which offers a stark contrast to the autocracy that he leads, to reclaim Ukraine as a part of Russia. That's why this is the greatest threat of security in Europe since World War II.

[00:35:04]

DMYTRO KULEBA, UKRAINIAN FOREIGN MINISTER: The entire world stands today with Ukraine, and rightly so. Putin wants much more than a war- torn piece of Ukrainian land and people living there. What stops him is only our unity and resolve.

(END VIDEO CLIP)

HOLMES: Vladimir Putin refusing to give a specific timeline of when Russian troops might move into Eastern Ukraine. But CNN can report a large number of military vehicles on the move across the border in Russia.

More now from CNN's Alex Marquardt.

(BEGIN VIDEOTAPE)

ALEX MARQUARDT, CNN CORRESPONDENT (voice-over): The Kremlin is calling them peacekeepers. That isn't convincing anyone that the Russian troops being ordered into the breakaway regions of Eastern Ukraine couldn't soon do more.

Putin today didn't say when the troops would be deployed. But the head of NATO said a further invasion is underway.

JENS STOLTENBERG, NATO SECRETARY-GENERAL: Russia has been present in different covert operations in Donetsk and Luhansk for many, many years. What we see now is additional Russian forces and troops moving in. This makes the whole situation even more serious.

MARQUARDT: The Kremlin's recognition of the territories adds up to what could be with Crimea, essentially a land grab of 7 percent of Ukrainian territory.

Few think his campaign stops here. More than 150,000 Russian troops on the modern arsenal of weaponry still surround Ukraine on three sides.

To the north, in Belarus, the Russian presence is apparently open- ended. There are fears also for Ukraine's southern coast on the Sea of Azov, thought to be a potential target for Putin to further connect illegally-seized Crimea to Russia.

MIKE ROGERS, CNN NATIONAL SECURITY COMMENTATOR: They want to cut off more of the Azov Sea. Strategically, that's important to Russia, as well as it is this romantic notion of Putin's that the Ukraine is really a Russian state, and it should have been all along.

MARQUARDT: And in Eastern Ukraine, that front line, the past eight years has now suddenly changed, posing new dangers, meandering unmarked, unrecognized frontier. A prospect of Ukrainian troops, a few hundred meters from Russian troops.

The rebel enclaves that Moscow recognized are just one third of the provinces that they're in. But Putin today said they believe the so- called republics can claim the rest of the land. An issue, he said, that will be worked out in talks between Kyiv and the Kremlin-backed separatists.

JULIA IOFFE, FOUNDING PARTNER AND WASHINGTON CORRESPONDENT, "PUCK": Just last week, they said they were withdrawing troops. Turns out, they weren't. They said they wouldn't. Putin last week said he wouldn't recognize these breakaway republics, because it would violate the Minsk Accords. He recognized the breakaway republics.

MARQUARDT (on camera): Some observers believe the Kremlin may even have much of Eastern Ukraine in its sights, coming all the way here to the Dnieper River, which divides West and East Ukraine. It's one of the few natural barriers in what is a largely flat country.

Some officials and experts fear that Putin's next move could be fast and heavy. Others believe it will be incremental and gradual, either way, designed to weaken the Kyiv government and expand Russia's reach.

Alex Marquardt, CNN, Zaporozhye, Ukraine.

(END VIDEOTAPE)

HOLMES: Now, as Alex just reported there, many observers think Russian President Vladimir Putin has designs on much more than just Eastern Ukraine. CNN military analyst James "Spider" Marks explains how he might try to claim more territory.

(BEGIN VIDEOTAPE)

JAMES "SPIDER" MARKS (RET.), CNN MILITARY ANALYST: Obviously, this is where Putin has had close to 200,000 troops deployed for, you know, close to a month. The area we're mostly concerned about is right here, and let me -- let me dive into that.

This is the Donbas region. Now, specifically, what was just annexed, officially in Putin's eyes, is this area right here. And this is the line of separation that has been in place for close to eight years.

Russia has had forces in this area for eight years supporting the separatists as they tried to separate from Kyiv.

What's most important, however, and what we're talking about now is what happens in the greater Donbas. Is Putin ready to move forward?

Now, we have some video that shows the movement of forces, logistics, self-propelled artillery, infantry fighting vehicles, and all these videos are taking place in this area right here, Rustov (ph) on down.

And what you're seeing is the movement of capabilities that reinforce the existing presence in the Donbas region in these two renegade provinces, if you will.

And this invasion of forces, this is an invasion. Let's not beat around the bush. This invasion could be an invasion without a shot being fired, because forces already exist there, and the separatists are facilitating, and the Russian forces that are there already are already facilitating that movement.

[00:40:06]

The next step is what's most important. If Putin decides to extend beyond this line of separation, we're now talking about engaging forces here.

This area is completely occupied by Ukrainian forces. This is where heavy combat will take place. This is where we would see dead bodies. And I suspect that what Putin understands is that if he can move in very quickly over the course of next day or so, he could then establish an election that gives credibility to this, and we see this movement into the greater Donbas more frequently.

(END VIDEOTAPE)

HOLMES: Our thanks to CNN military analyst, retired U.S. Army General James "Spider" Marks for that analysis.

I'll have more from Ukraine later this hour, but for now, let's go back to John Vause in Atlanta with a look at the day's other news.

Back to you, John.

JOHN VAUSE, CNN INTERNATIONAL ANCHOR: Michael, again, thank you. We'll take a short break. When you come back, mandatory COVID tests for almost seven and a half million residents of Hong Kong. Just another sign Beijing's heavy hand is playing a bigger role in efforts to control the latest wave of the coronavirus.

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VAUSE: Welcome back, everyone.

The number of COVID cases globally is falling dramatically, according to the World Health Organization, but possibly not for the right reasons.

Many countries on this map shown in light green reported new cases fell between ten and 50 percent last week. And here's why the WHO is concerned.

(BEGIN VIDEO CLIP)

MARIA VAN KERKHOVE, TECHNICAL LEAD FOR WHO'S COVID-19 RESPONSE: Now, I want to put some caution around this, because the amount of testing that is occurring in countries is reducing substantially. So this declining trend that we're seeing and about a 20 percent reduction in cases may not be real.

(END VIDEO CLIP)

VAUSE: South Korea set another record for COVID infections on Tuesday, reporting more than 170 new cases, almost doubling since Monday, when less than 100,000 cases were recorded. And experts predict daily infections could reach as high as 270,000 March, with the number of critical patients also expected to rose more than 86 percent if South Korean residents are fully vaccinated.

Hong Kong chief executive Carrie Lam is ordering mandatory COVID tests for all residents beginning next month. The precaution comes with surging new infections, which officials say has exceeded the healthcare system's ability to care for.

Live to Hong Kong. CNN's senior international correspondent, Ivan Watson, has the very latest for us. And it does seem that a heavy hand Beijing is playing a role in all of this.

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes. Though the chief executive, Carrie Lam, she insisted that she was making the final decisions, that this was not being dictated by the Chinese central government.

But the announcement made Tuesday night was pretty stark, extending the virtual lockdowns we have here until close to the end of April. That means also extending the school closures and announcing that the city will be effectively on a wartime footing against COVID, where you are getting roughly 6,000 new cases daily now.

She's announced that she plans for the entire population of Hong Kong to be subjected to mandatory testing. Three rounds of COVID testing starting in March, that the government is making the very unusual decision of pushing forward school children's summer holidays from the end of June to just next week, starting in March for two months. And to then use schools as testing sites and COVID isolation facilities.

Meanwhile, the government is also going to be building tens of thousands of isolation facilities, and it's not backing from its zero- COVID approach to the virus, which is, if you test positive, you have to go into a hospital isolation.

So just last week, we saw hospitals already overwhelmed, several of them forcing -- forced to place some of their patients outside of the emergency rooms for a long periods, because there simply was not enough room inside.

Basically, the scenario is that the entire population will have to go for mandatory testing. If you test positive, you will be sent away, possibly to one of these new hospital camps that the government is currently constructing, and some cases, as we speak.

The government will also be extending its ban on any flights from nine countries, including the U.S., Canada, France, Australia, despite the fact that there were only three imported cases yesterday and more than 6,000 cases from community infection here in Hong Kong.

Critics have said that there's really no public health logic behind some of these decisions. But again, mainland China and now Hong Kong are doubling, tripling down on these zero-COVID approach to the pandemic.

Here's what Carrie Lam had to say when she was asked about the legal grounds for some of the measures that she is now implementing.

(BEGIN VIDEO CLIP)

CARRIE LAM, HONG KONG CHIEF EXECUTIVE (through translator): In this wartime environment, this emergency, we cannot let existing law stop us from doing something we should do. This is not the mentality for fighting a war.

(END VIDEO CLIP)

WATSON: She also said that after this storm, Hong Kong will see a rainbow again soon.

Anecdotally, I have to say that these measures have triggered a certain amount of panic through communities here in Hong Kong, hearing a lot of communicating on message boards and WhatsApp groups, Facebook groups, of people talking about wanting to leave the city, once and for all -- John.

VAUSE: Can't blame them. Makes you wonder what the authorities in Beijing know that everyone else does not.

Ivan Watson, live in Hong Kong, thank you.

Well, in Africa, the fourth named storm of in just a month has now pummeled across Madagascar. Brought Category-One-force winds. Tropical cyclone Emnati made landfall a short time ago, midnight local time. Many of the people in the storm's path were already displaced and reeling from a deadly cyclone just a few weeks ago.

Meteorologist Pedram Javaheri joins us now with more on this.

So four storms, four big ones in four weeks. And the last two are following a very similar track.

PEDRAM JAVAHERI, CNN METEOROLOGIST: They have, and that's the concerning part of it. As you noted, this region has been so hard-hit, John, in recent weeks, and you're looking at a Category One equivalent system that made landfall coming ashore there at midnight, and that's the concern.

Into the overnight hours, of course, people perhaps not as prepared as they would be if it was during the daytime hours. Maybe they're in bed, and the wind begin howling, of course, and there is significant damage on those coastal communities.

But the system made landfall on the southern and southeastern coast there on Madagascar. And you've got to keep in mind, this region of the world, on average, sees one tropical storm per year now.

But John told you, in each of the last four weeks, we've seen at least one system every single week, going back to the latter portion of January, then early February, then mid-February, and most recently, in the past few hours making landfall there.

So an incredible run of tropical weather across this region closing in on the record for the most number of tropical cyclones in any given year. That's five. Good chance we'll get there here in the coming months as the tropical activity in tropical season continues for at least a couple more months.

But significant rainfall still in store in a region that is suffering from drought, but the long-term outlook here has shown that the region has been very dry over the past decade or so.

[00:50:06]

So a lot of this is not going to be absorbed readily as the rain comes down. And what is left of the system eventually does pull away from the coast here, and we do expect improving conditions as early as Thursday into Friday.

left of the system eventually pulls left of the system eventually pulls away from the coast and we do expect improving conditions as early as Thursday into Friday.

But again, an incredible run of tropical weather and one for the record books here, John.

VAUSE: Yes, absolutely. Pedram, we appreciate that. Pedram Javaheri with the very latest.

Well, a fire on board a cargo ship carrying luxury vehicles across the Atlantic Ocean appears to be burning itself off. The ship's captain told Portuguese media there's not much left now to burn.

The cargo ship was carrying about $330 million worth of vehicles when the fire started last week in Portugal's Azores Island.

All crew members on board, all 22 of them, managed to abandon ship safely. This journey was meant to set sail for -- the ship was meant to set sail from Germany to United States. Right now, it is still unclear how the blaze began.

(INAUDIBLE) now is on the hunt for very, very rich Russians. Why the Kremlin and the oligarchs bolstering it are being hit with various new sanctions. But will that be enough to rattle Russia?

(COMMERCIAL BREAK)

HOLMES: Hello, everyone. I'm Michael Holmes, live in Lviv, Ukraine.

Russia pushing back against new sanctions from the U.S. and its allies, saying they will hurt global, financial and energy markets, and also, ordinary Americans will also feel the consequences. That's what they're saying.

The U.S. president, Joe Biden, says he acted because he sees, quote, "the beginning of an invasion in Ukraine." Satellite images also indicate an increase in Russian forces and equipment nearby. Moscow insisting it has no soldiers inside Ukraine yet.

But the NATO chief says they've been actually there since 2014, when the areas became self-declared republics and that this is actually a reinvasion.

Now, all of this coming a day after Moscow formally recognized those breakaway areas in light red as independent. Now since then, Russia has ordered diplomatic stuff out of Ukraine, and President Putin making no secret of his disrespect for the former Soviet republic. (BEGIN VIDEO CLIP)

VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): After the fall of the Soviet Union, Russian recognized all the new geopolitical realities, and, as you know, is actively working to strengthen our cooperation with all the independent countries that emerged in the post-Soviet space. We intend to work in this way with all our neighbor's but in Ukraine, the situation is different.

(END VIDEO CLIP)

HOLMES: Now, he went on to say that's due to Ukraine being used by foreign powers to create threats against Russia itself.

Of course, Ukraine denies all of that; it's threatening no one.

Meanwhile, Germany hitting the brakes on its Nord Stream 2 pipeline with Russia, which was meant to deliver natural gas to Europe. That pipeline is built, but it's not operational.

Gas isn't flowing at the moment anyway.

The German chancellor announces no one should bet on its future and that Russia's actions this week have been, quote, "a great disappointment."

(BEGIN VIDEO CLIP)

OLAF SCHOLZ, GERMAN CHANCELLOR (through translator): These are very difficult days and hours for Europe. Close to 80 years after the end of World War II, there is the danger of a war in Eastern Europe. It is our job to avert such a catastrophe, and I appeal again to Russia to help in the process. Thank you.

(END VIDEO CLIP)

[00:55:12]

HOLMES: Uber wealthy Russians who have sway with President Putin, well, they could soon feel the squeeze of sanctions themselves individually, and some might even be kicked out of western countries where they keep properties and their fortunes, and prefer to live.

CNN's Tom Foreman explains why Russian oligarchs are coming under fire.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): The west is hunting rich Russians. Their yachts, homes, and hidden bank accounts, all the assets of Vladimir Putin's billionaire boys' club.

JOE BIDEN, PRESIDENT OF THE UNITED STATES: We'll also impose sanctions on Russia's elites and their family members. They share in the corrupt gains of the Kremlin policies and should share in the pain, as well. FOREMAN: Many Russian oligarchs, who often spend a lot of time outside

Russia at their foreign properties have deep ties to Putin. Newly- named to the U.S. sanctions this, Denis Bortnikov, an official at a Russian bank and son of the director of the federal security service, the modern KGB.

Peter Fradkov (ph), a banking official with strong ties to Russia's defense industry.

Vladimir Kiriyenko, son of Sergey Kiriyenko, the former prime minister who oversees Putin's domestic policy, who has also been sanctioned. And the list could grow.

ANTONY BLINKEN, U.S. SECRETARY OF STATE: Other Russian elites and their family members are on notice, that additional actions could be taken against them.

FOREMAN: The Brits have names, too.

BORIS JOHNSON, BRITISH PRIME MINISTER: And we are sanctioning three very high net worth individuals, Gennady Timchenko, Boris Rotenberg, and Igor Rotenberg.

Timchenko was one of the richest people in Russia with "Forbes" estimating his net worth at 24 billion. His business deals integrated the illegally-seized Crimea into the Russian financial system.

The Rotenbergs have strong interest in gas and energy companies, and plenty of Russian banks and businesses are also on the list.

Edward Fishman was formerly with the U.S. State Department.

EDWARD FISHMAN, FORMER U.S. STATE DEPARTMENT OFFICIAL: These individuals have kind of a tacit agreement with the state. They support Putin politically, and as a result, they're allowed to benefit from kleptocratic practices.

FOREMAN: Some of Putin's pals were hit with sanctions when Crimea fell in 2014.

BARACK OBAMA, PRESIDENT OF THE U.S.: All this changes capitalists.

FOREMAN: Analysts believe that did slow Russia's roll into Ukraine. And this time, many say the economic consequences for Putin should be steep.

And, for the oligarchs, their wives and mistresses and their assets that they shelter abroad.

FISHMAN: You're not going to turn a Russian billionaire into a pauper. But what you can do is create substantial frustration and annoyance in their lives.

FOREMAN (on camera) The sanctions could freeze assets for many of these superrich Russians. It could block new investments, stop them from traveling, maybe even keep their kids from attending western universities.

But will all of that rocking of the yachts be enough to make Putin change his direction? The smart money says maybe.

Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

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

VAUSE: I'm John Vause in Atlanta. Michael and I will be back in less than two minutes with a lot more on the crisis in Ukraine. Stay with us. You're watching CNN.

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