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Russia Unleashes More Attacks and Airstrikes on Ukraine; Biden Imposes Sweeping New Sanctions on Russia; Kharkiv Residents Turned Subway Station into Bomb Shelter; Outrage Over Russian Invasion of Ukraine; E.U. Leaders Announce Harsh Sanctions, Say Putin Must Fail; Ukrainian Military Says It's Resisting Russian Advance From North; Russia Comes Under Barrage Of Economic Sanctions. Aired 2-3a ET
Aired February 25, 2022 - 02:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[02:00:00]
UNKNOWN (voice-over): Breaking news.
MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT: Hello, everyone. I'm Michael Holmes coming to you live from Lviv in Ukraine with the breaking news. I will tell you from the outset, we have lost power here in our position in Lviv, and hence, I'm probably a little dark, but we shall carry on.
Missile strikes, explosions in Ukraine's capital, Kyiv, as the Russian invasion is now in its second day. The Ukraine --
KIM BRUNHUBER, CNN ANCHOR (on camera): Ukraine acknowledges one of its own fighter jets has been shot down over Kyiv, but it claims it has inflicted more 800 casualties on Russia for -- Russia forces since the invasion started.
Other images show an apartment block on fire in Kyiv. The mayor says three people were wounded when a rocket hit the building. Russian forces are moving deeper into Ukraine and appear to have their sights set on the capital.
Ukraine and the U.S. says the Russian plans to encircle the city and go after the government. The defense ministry says Ukrainian troops have blown up a key bridge north of Kyiv to try to stop the Russian advance.
Russian forces have been pounding airfields and military bases all across the country. British Intelligence reports at least 80 strikes since the fighting began. A U.S. source says Russia has launched more than 160 missiles.
Ukraine's president reports at least 137 soldiers have been killed since the invasion began, and in his latest social media address, he urged Ukraine's allies to do more.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKY, PRESIDENT OF UKRAINE (through translator): This morning, we are defending our country alone, just like yesterday. The most powerful country in the world looked on from a distance. Russia was hit with sanctions yesterday, but these are not enough to get these foreign troops off our soil. Only through solidarity and determination can this be achieved.
(END VIDEO CLIP)
BRUNHUBER (on camera): Russian forces are said to have taken control of the Chernobyl power plant in Northern Ukraine, the site of the world's worst nuclear disaster. Military adviser says staff members are being held hostage.
Meanwhile, U.S. President Joe Biden has unveiled sweeping new sanctions on Russia, although he admits it will take some time before Moscow feels the effects. He also says he is still considering direct sanctions on Vladimir Putin.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES OF AMERICA: Putin is the aggressor. Putin chose this war. And now, he and his country will bear the consequences.
(END VIDEO CLIP)
BRUNHUBER (on camera): I'm just letting you know, we lost Michael Holmes's feed there. I'm Kim Brunhuber and we will try to go back to Michael if we can get his power up.
And CNN has correspondents positioned across Ukraine and around the world to bring you the latest on this breaking news. Clarissa Ward is in the eastern Ukrainian city of Kharkiv, and we will get the reaction from the world's financial markets from Anna Stewart in London.
CNN senior international correspondent Jim Bittermann is live in Paris with international reaction. But first, let's go to White House reporter Kevin Liptak in Washington. Kevin, so, as the Russians advance on the capital with all that could entail, what is the White House is saying about the situation?
KEVIN LIPTAK, CNN WHITE HOUSE REPORTER: Yeah, the White House and the Biden administration at large are watching that situation very closely this evening.
We should say, earlier tonight, some U.S. lawmakers did receive a briefing from top level administration officials, and one of the key pieces of information that they were told in that briefing was that Russian forces coming from Belarus were about 20 miles outside the Ukrainian capital, Kyiv. That was about seven hours ago. So, of course, those forces may have advanced since then.
These lawmakers were told that the forces were on the east, south, and north of Kyiv. And obviously, this was all a very troubling information.
One of the other things that you are starting to hear from senior officials here in Washington this evening is sort of this growing sense, that they are convinced that one of Putin's aims in all of this is to take out the government of Ukraine. The Zelenskyy government, clearly, under threat tonight, according to Biden administration officials.
We should say that the White House has discussed with Ukrainian President Volodymyr Zelenskyy the contingency plans should his safety come under threat. It is not clear, necessarily, how engaged or how willing he has been to consider those plans. The White House said today that they are providing him a broad range of support but, of course, declined to get into any sort of specifics on the security arrangements.
Of course, we did hear President Biden earlier today lay out those sanctions, really withering sanctions on Moscow for what it is doing in Ukraine over the past several days.
But one of the most chilling things that I think you heard the president say in those remarks earlier today from the east room was that he believed that Putin wouldn't stop necessarily at Ukraine, that his goal was really reconstituting the entire Soviet Union.
[02:05:00]
LIPTAK: So, really a lot of chilling thoughts and chilling words coming out of Washington tonight.
BRUNHUBER: All right. Thanks so much, Kevin Liptak, in Washington. Let's cross over to Jim Bittermann in Paris with the latest international reaction. Jim?
JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT (on camera): Kim, in fact, the European Union met until the wee hours of this morning. They woke
up around 2:00 this morning. And now, the news conference afterward to talk about the kind of things that they are proposing to do, the kind of sanctions they are proposing to take.
Ursula von der Leyen, the European Commission president, said that Russia will -- quote -- "We will hold the Kremlin accountable" and then outlined some of the sanctions they are talking about, although many were saying this morning that the sanctions did not go far enough.
President Macron at that news conference last night revealed that, in fact, he had put in a phone call to President Putin of Moscow as the attack was taking place, as the invasion was taking place, and basically told him that all the military activities had to cease immediately. He said, of course, that obviously did not go anywhere. But he did explain why he made that phone call (INAUDIBLE) Ukrainian President Volodymyr Zelenskyy.
(BEGIN VIDEO CLIP)
EMMANUEL MACRON, PRESIDENT OF FRANCE (through translator): I think it is my responsibility, first of all, to take such initiatives when they are requested by Ukraine. And then, while condemning, while sanctioning, while continuing to decide and act, to leave this path open so that the day when the conditions can be met, we can obtain the secession of hostilities for the Ukrainian people.
(END VIDEO CLIP)
BITTERMANN (on camera): President Macron said, in fact, that he felt that Putin had been totally duplicitous because he had tried desperately to negotiate something before hostilities began, and he said, yes, there was duplicity, yes, there was a deliberate conscious choice by President Putin to launch the war when we could still negotiate peace. Kim?
BRUNHUBER: All right. Thanks so much, Jim Bittermann, in Paris.
And now, we want to go back to Michael Holmes in Lviv. Michael?
HOLMES (on camera): Yeah. Thanks so much, Kim, for picking it up. Power went out here. It was nothing invasion-related. It has been sorted out. Let's go on now. Residents in Kharkiv in Ukraine, they have turned to subway station into a makeshift bomb shelter.
CNN chief international correspondent Clarissa Ward was there and spoke with frightened but determined Ukrainians seeking safety.
(BEGIN VIDEOTAPE)
CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT: Kharkiv residents scramble to find shelter as Russia's brutal assault unfolds. Deep underground, scenes reminiscent of the second world war. The shock just sinking in that what was unimaginable is now reality, as 36-year-old Daria (ph) tells us.
DARYA, UKRAINE RESIDENT: It's like you wake up (INAUDIBLE) 5:00 a.m. and you find out that the world is no longer the safe place you imagined. We are independent country, Ukraine, and we are not same as Russians. And we don't want to be a part of Russia or any other country. I cannot believe it's happening, really.
WARD (voice-over): Yesterday, this was just an ordinary metro station, full of people going to and from work. Today, it has become a de facto bomb shelter. And there are just hundreds and hundreds of people who have descended on this place.
(On camera): Fearful for their lives and uncertain of what the future will bring. And the thing you hear over and over again from people is, where can we go? Where is it safe now to go in Ukraine?
And I want to be clear about something. This is not a frontline city in Ukraine's eight-year war with Russia. This is a thriving metropolis of 1.4 million people who have never experienced anything like this in their entire lives.
And now, they are being forced to literally camp out with their families, their pets, their loved ones. They grab whatever they could from their homes and they brought it here. And they don't know what's next for them. They don't know what's the new Ukraine will look like and what place they will have in it.
(Voice-over): Many we approached are too overcome to speak.
(On camera): I am asking them if they afraid. They are very nervous. Why are you nervous?
(Voice-over): Look at the situation around you, this woman says.
(On camera): I'm so sorry, this is a terrible, terrible situation.
(Voice-over): There is no doubt here about who is responsible for this conflict. But few can understand why.
(On camera): So, it's interesting. I just asked them, what do they think of President Putin?
[02:10:00]
WARD (on camera): Do they think he is crazy? They said, he is not crazy, he's sick, he's sick, we just want to live peacefully.
DARYA: I just hope that some people (INAUDIBLE).
WARD (voice-over): A simple plea for mercy that has, so far, fallen on deaf ears.
(END VIDEOTAPE)
HOLMES (on camera): All right, Clarissa Ward there. And joining me now from Canberra in Australia, Sam Roggeveen. He is the director of the International Security Program at the Lowy Institute. And thanks so much for being with us.
You -- tapping into your expertise, what do you see on the battlefield in terms of what might likely be next employed by the Russians going on? I guess the softening up is underway still or is largely done. What, tactically, do you expect to see?
SAM ROGGEVEEN, DIRECTOR OF INTERNATIONAL SECURITY PROGRAM, LOWY INSTITUTE: Well, thanks, Michael. I think the first thing I'd say is that myself and everyone who is following the news and the social media feeds on this should treat all the incoming information with a lot of caution.
It's difficult to know what's real and what's -- whether the picture you see, you know, of a Russian tank with (INAUDIBLE), whether that comes from this conflict or some previous conflict.
What I would expect to see, though, is that -- I know the Pentagon just recently released some information that Russia used around 160 ballistic and cruise missiles on the opening couple of days of this conflict. And what I would expect now is with Ukrainian command and control having been targeted and Ukrainian air defenses having been targeted by those missiles, that we would see more manned aircraft being used. So, the Russians have a reasonably large inventory of attack aircraft, some old, some new, and they will employ those now that there was less risk from Ukrainian air defenses and Ukrainian command and control to organize a defense.
The really bad news, I think, for Ukrainians out of that is that -- is that we know from the Russian practice in Syria that they don't use a lot of precision-guided weapons on their strike aircraft. They use -- they don't have huge --
HOLMES: Yeah.
ROGGEVEEN: -- stocks of those weapons, so they use more bombs and that is going to mean civilian casualties.
HOLMES: Yeah. And we all know what happened in Grozny as well and the devastation caused to that city. And to that point, Russian forces apparently coming up on Kyiv at the moment. Can you see tanks rolling into Kyiv with the carnage that that might lead to, or do you think it is possible they might stay on the outside, cut the water, cut the power and lay siege?
ROGGEVEEN: Yeah. Look, I'm really reluctant to speculate. I mean, the situation is so opaque at the moment. It is so difficult to know exactly what's going on. We read reports -- we just heard that Russian tanks are some 20-to-30 miles outside of Kyiv.
We also heard from the American authorities that Ukrainian defenses are -- have been quite effective and the Russians haven't met the goals they probably set themselves for the early phase of this conflict. I am really reluctant to speculate about what might happen.
HOLMES: What would an incursion into a city the size of Kyiv looks like? If it was troops on the ground, tanks in the streets, I can't imagine what that would look like.
ROGGEVEEN: Well, we certainly know that warfare is extremely messy and dangerous. So, you know, from recent evidence throughout the Middle East as well as in Eastern Europe. So, yeah, that is an extremely dangerous scenario.
HOLMES: All right. I want to ask you this, too. I mean, you study the forces. I mean, given the imbalance between the two militaries, what sort of fight are you seeing from the Ukrainians? And what do you expect going forward? I mean, can you see an insurgency evolving from this?
ROGGEVEEN: What we know from the balance of forces is that the Russians have a real advantage in airpower. So, the Ukrainians have a relatively large land force, particularly over the last seven or eight years. It has been partially modernized although still suffers from a lack of funding because Ukraine is not a wealthy country. But it has been modernized. Its tactics and its command and control have been updated.
[02:15:00] ROGGEVEEN: But where they really suffer is in airpower and where the Russians have a distinct advantage is in airpower.
So, I only expect the Russians to really use the advantages that they have. They also long-range artillery and rocket artillery. So, none of those things suggest that the next phase of this war is going to be
very easy. There's a possibility of very heavy bombardment from Russian land forces and also from the air.
HOLMES: And quickly and finally, I mean, Putin obviously has been undeterred by the sanctions imposed and the sanctions threatened. What is the backup for the west? Has this sort of exposed the limitations of the west in many ways, if he's prepared to just deal with the sanctions?
ROGGEVEEN: Yes, it has done that, but I think that shouldn't surprise us. And in fact, even during the Cold War, when the Soviet Union at the time suppressed dissent in Hungary in 1956 and Czechoslovakia in 1960, the west didn't come to the aid of those two countries, when the Soviets put down local reform movements.
Traditionally, big powers have always had influence and Russia is trying to reestablish a sphere of influence around its periphery. The United States has had a sphere of influence in the Americas, really, since the early 19th century. So, this is pretty typical behavior for great powers and it does show the limitations of American power. That shouldn't surprise us.
In a way, what's going on here is absolutely a tragedy for the Ukrainian people. But we shouldn't wish it were otherwise because if American and Russian forces come into direct conflict, then we've got two nuclear powers clashing and the consequences of something like that are really too dire to contemplate.
HOLMES: Yeah. Sam Roggeveen in Canberra, I really appreciate journalists. Thanks so much.
ROGGEVEEN: Thank you, Michael.
HOLMES: And still to come here on "CNN Newsroom," how people around the world are making their outrage heard over this invasion of Ukraine. We'll be right back.
(COMMERCIAL BREAK)
[02:20:00]
(COMMERCIAL BREAK)
HOLMES (on camera): Welcome back, everyone. I'm Michael Holmes here in Lviv in Ukraine. We want to bring you some more reaction from Ukraine's citizens. We've been talking with residents here in Lviv to get their thoughts on the Russian invasion. Here's a brief sample.
(BEGIN VIDEO CLIP) UNKNOWN: Most of the time, I'm just trying to understand that yes, something bad is happening, but there is no need to panic. We just need to take some action, some precautions and try to keep alert and mindful and stay kind of clear minded because there is no point in panicking. It will only make it worse.
UNKNOWN: I feel angry. You know? I don't feel helpless, but I feel angry. And I feel like we need an international support, strong support. Today, my president, President Zelenskyy, said that he encourages other countries to join an anti-Kremlin, anti-Russian coalition. And I also would like to support this call and to call to the world, to the free world to join Ukraine and to help us to throw away Putin from Ukraine, from all Ukrainian territory, including the occupied ones.
(END VIDEO CLIP)
HOLMES (on camera): Now, President Vladimir Putin, of course, enjoys overwhelming support at home in Russia. However, not everyone in Russia on board with this incursion. According to independent media and local monitoring groups, more than 1,700 people have been detained in anti-war protests around the country and some in Russia are shocked by recent events.
(BEGIN VIDEO CLIP)
UNKNOWN: I cannot express how much pain we feel now. It hurts because they're our friends, our relatives.
UNKNOWN: I'm just scared, shocked, and I don't believe to our government.
(END VIDEO CLIP)
HOLMES (on camera): And the protests don't stop with Russia. CNN's Lynda Kincade reports the invasion has prompted demonstrations all over the world.
(BEGIN VIDEOTAPE)
CROWD: Hands off Ukraine! Hands off Ukraine!
LYNDA KINKADE, CNN CORRESPONDENT (voice-over): Hundreds of protesters gathered outside the Russian embassy in London. They hold Ukrainian flags and signs expressing their anger, shouting for Russian president, Vladimir Putin, to stop the attack on Ukraine.
CROWD: No!
KINKADE (voice-over): A rally organizer made a direct appeal to world leaders to do something about the situation.
UNKNOWN: For all these eight years, we were trying to say that Putin is not going to stop where he was. He's going to go further. The world needs to wake up and they need to understand, no means no. They have to stop him. He can't do this anymore.
KINKADE (voice-over): In Beirut, protesters singing Ukraine's national anthem outside the Russian embassy there. Standing in solidarity with Ukraine, one woman of Ukrainian descent says she's fearful of what might come next.
SUZAN JARAMANI, UKRAINIAN-LEBANESE UNIVERSITY TEACHER: We do not want World War three to happen all over again. We just want peace. So, leave us be. And Putin, take your people and just go back to where you belong.
KINKADE (voice-over): At the Brandenburg Gate in Berlin, demonstrators chant and gave speeches condemning Russia's invasion.
[02:24:59]
KINKADE (voice-over): Some hold signs comparing Vladimir Putin to Hitler, a stark reminder of the country's dark past. Some say world leaders haven't done enough to stop President Putin. One protester said he's fearful for his loved ones still in the country.
UNKNOWN (through translator): I can't believe it's happening. My entire family in Ukraine is now in danger. And for me, as the only one who had lived in Germany for a relatively long time, I cannot understand to this day why Germany has done so little against this.
CROWD: Putin, stop war! Putin, stop war!
KINKADE (voice-over): And in central Tokyo, dozens of people gather in the city's busiest shopping district, many surprised by Russia's actions.
YUNI KRAINIK, UKRAINIAN PROTESTER: Of course, we're all scared because we were not expecting they are attacking whole Ukraine this morning. So, of course, I feel awful about this.
KINKADE (voice-over): From Berlin to Beirut, Paris to Rome, and to Washington D.C., people around the world are expressing their anger over Russia's attack on Ukraine and pleading with world leaders to stop it, saying they're standing with Ukraine and they're standing up for democracy.
Lynda Kinkade, CNN.
(END VIDEOTAPE)
HOLMES (on camera): Here in Lviv, Ukraine, air raid sirens have been going off again, not the last couple of hours but they did go off. Same goes for the capital. I'll be back live with all the latest developments in just a moment.
(COMMERCIAL BREAK)
[02:31:21]
MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT (on camera): Hello, everyone. I'm Michael Holmes, coming to you live from Lviv in Ukraine where air raid sirens have been blaring.
HOLMES (voice-over): Sirens have also been going off in the capital, Kyiv, which was hit by at least six explosions in the early morning hours.
Ukraine's foreign minister calling the strikes the worst in Kyiv since 1941, when Nazi Germany attacked. The government says this dramatic video shows one of its anti-missile systems shooting a Russian rocket out of the sky.
We're also hearing troops blew up a bridge north of the capital to prevent a Russian column of troops from advancing.
Across the country, many Ukrainians are inevitably and understandably terrified. Some families crowding into subway stations and bomb shelters with young children, trying to explain to them what's happening, and make some sense of how the world has been turned upside down for them.
E.U. leaders have been condemning the barbaric invasion, as they put it, and just announced harshest ever sanctions.
(BEGIN VIDEO CLIP)
URSULA VON DER LEYEN, PRESIDENT, EUROPEAN COMMISSION: Putin is trying to subjugate a friendly European country. And he's trying to redraw the maps of Europe by force. He must and he will fail.
(END VIDEO CLIP)
HOLMES: Now, a little while ago, Ukraine's president said allies are not doing enough and, "we are defending our country alone."
Minutes ago, Ukraine's military announced that it is resisting the Russian advanced north of the capital Kyiv.
I want to bring in CNN's Katie Bo Lillis, live from the Pentagon.
And Katie, what are officials at the Pentagon watching tonight?
KATIE BO LILLIS, CNN NTELLIGENCE AND NATIONAL SECURITY REPORTER (on camera): Yes, Michael, really growing concern in in Washington here in the Pentagon and across the across the capital that the fate of the Ukrainian capital Kyiv hangs in the balance in really in the coming hours and coming days.
Senior U.S. officials -- senior Biden administration officials, briefed key members of Capitol Hill just in the last --- just this evening, telling them that disturbing news that the Russian forces that had entered into Ukraine from the north from Belarus, we're now just 20 kilometers from Kyiv from the nation's capital.
And, of course, we understand Russian forces still holding an airport near Kyiv as well that could be used to airdrop in paratroopers, Special Operations Forces that could -- that could gain access to Kyiv. Secretary of State Antony Blinken, saying publicly today that the U.S. believes that Putin's intention is to encircle the city. Certainly, intelligence and defense officials at this point believe pretty firmly that Putin's intention is to try to topple the Zelensky government in Kyiv, and we understand from previous reporting, presumably replace it with some kind of pro-Russia, Russia friendly proxy, proxy government.
So, really tonight, all eyes on Kyiv and on the Ukrainian forces fighting to defend the capital and the country at large. Intelligence and defense officials have been pretty frank from the beginning, though that they are outgunned, outmanned, and the expectation is not that they will ultimately be able to repel the invasion, but of course, hopefully, extract some costs from Russia in doing so.
I think one of the big unanswered questions at this point is what happens if Russia is successful, if it is able to topple Kyiv, if it is able to install some kind of Russia friendly proxy government.
I think the big question then for officials here is does Russia seek to maintain military forces in Ukraine? Does it seek to sort of occupy the country over the long term?
[02:35:06]
LILLIS: So, that's I think one of the big unanswered questions going forward. Michael.
HOLMES: Indeed, one of them Yeah. Katie Bo Lewis at the Pentagon appreciate it. Thanks so much.
Now, Alexander Gabuev is a senior fellow at the Carnegie Moscow Center. He is with us from the Russian capital. And thanks so much for doing that. Now, the U.S. and Europe everyone really saw this coming for months and couldn't stop it.
Putin knew that the U.S. and NATO wouldn't step in. He judged he could handle the sanctions. What did the West do wrong? And what could the West do now to preserve Ukraine's independence, if that's even possible?
ALEXANDER GABUEV, SENIOR FELLOW, CARNEGIE MOSCOW CENTER: Well, the list of mutual grievances, missteps, misreading's goes back to probably collapse of the Soviet Union. And it's just very difficult to figure out what the exact moment was.
Was the 2014 my done (PH), NATO expansion, and then both sides has obviously done a lot to lead -- that lead to this crisis, because at least it takes two to tango. Unfortunately, we are past the moment where stopping war is possible. It looks like the Russian forces and Vladimir Putin are determined to reach their military objectives. And it's not a fair fight. Ukraine definitely is out man and outgunned.
And since the West will not commit its troops and will not commit any fighting capabilities, the military part of this drama is unfortunate for likely to end soon, and that's tragic on all accounts. HOLMES: Yes, it is, indeed. I wanted to ask you about, you know, when it comes to those sanctions, and those close to Putin, we're talking about the oligarchs and others. I mean, can they be effectively sanctioned? I mean, many are already sanctioned, or they perhaps sanction proof their lives and money. Can they be hurt in any substantive way?
GABUEV: The people who are very close to Putin and who are part of the decision making, the chain of command, are hurt, but they have been sanctioned before for 2014 annexation of Crimea, Russia's role in Donbas War, before the recent escalation.
So, they know that they're going to end their lives in fortress Russia, and actually further sanctions are only increasing their grip on the economy and on the decision making in the country.
Other oligarchs who are not part of Putin's inner circle and this vast cohort, are probably terrified, but they are not really important. They cannot influence Putin's decision, and the regime stands very unified. So, there are no visible cracks in the regime that will probably make Mr. Putin change course.
HOLMES: And to that point, you know, when you talk about the people close to him. I mean, how many people have Putin's ear who can actually talk to him influence him, or is that not how it works? He is doing this alone, and nobody can say no?
GABUEV: We don't -- we don't know. It's really a black box. And any analyst claims that he has insights in the crystal ball, I think is wrong. But the recent meeting of the Russian Security Council on Monday is pretty instructive.
Where Putin has collected like 20 or 30 top officials in the country, including chairman and chairwoman of the Senate and the lower House. And everybody was taken hostage, and everybody had to approve the initial decision to recognize Donetsk and Luhansk as independent statelets.
And we saw that Foreign Minister Lavrov, for example, started the meeting off, saying that, oh, diplomacy has a chance, and like we should continue negotiations with both Ukraine and the West.
And towards the end, he made a U-turn, and said, well, actually recognition if that's what you want, Mr. Putin, is a great idea. So, it doesn't look like there are people who have influence and who could say no to Mr. Putin's design.
HOLMES: Great analysis as always. We'll check in with you again, Alexander. Alexander Gabuev there in Moscow, really appreciate it as always.
[02:39:24]
HOLMES: And my colleague Kim Brunhuber will pick up our coverage from Atlanta when we come back, including the new economic pain that Russia will face for its invasion of Ukraine. Stay with us. (COMMERCIAL BREAK)
KIM BRUNHUBER, CNN INTERNATIONAL ANCHOR (on camera): I'm Kim Brunhuber live in Atlanta. As the Kremlin unleashes its military might on Ukraine, Russia is coming under a barrage of international economic sanctions.
BRUNHUBER (voice-over): On Thursday, the E.U. slapped a new round of punitive measures on Moscow. European Commission president Ursula Von der Leyen said they'll have a "maximum" impact on Russia's economy and political elite.
Present Joe Biden announced a new package of U.S. sanctions. They'll go after Russia's top banks, state owned businesses, oligarchs, and the military. And the amount of the strongest sanctions ever imposed on any economy, the size of Russia's.
Moscow is facing even more economic punishment as Japan, Australia, and Taiwan announced new sanctions as well.
So, for more on all that, Anna Stewart joins us from London. Ana, so, let's go through the sanctions. What are they cover, and how are they reverberating through the markets?
ANNA STEWART, CNN CORRESPONDENT (on camera): Yes, because, Kim, compared to the first round of sanctions, this is much, much broader, it will inflict a lot more pain.
And looking at what's been targeted here, banks, financial institutions, and Russia, the much bigger institutions which were missing from that Initial lists. So, really, essentially cutting off the major Russian banks from financial markets across Europe and in the U.S.
[02:45:08]
STEWART: Freezing assets for many of them. And VTB, which is Russia's second largest bank is facing full sanctions from the U.S. and the U.K. We've just had the E.U. sanctions list overnight. Lacking some detail, we should get more of that hopefully later today.
Other companies also being targeted now for sanctions within Russia, particularly those, I think, in the defense sector. So, Russian companies which make tanks, ships, missiles, aircraft, that sort of thing.
Individuals, the oligarchs, those within Putin's inner circle, those sanctions have been expanded considerably. So, many more people on that list, many of their families as well, essentially making it really hard for them to live their second lives in Europe and the U.S.
So, freezing assets, implementing travel bans, and so on.
So, that could put some pressure on Putin domestically. And then, we have, I think, some of the most interesting sanctions measures yet, that is export restrictions. And this is long touted by the U.S. and Europe and the U.K. But now we're seeing where they're hitting. And it's really targeting tech. Tech that is critical to all sorts of different Russian sectors.
And this has really far reaching consequences. For instance, Taiwan, who are implementing sanctions, haven't got details on them yet. But their biggest chip maker, which is actually the biggest chip maker in the world, will no longer be able to sell semiconductors to Russia, because they use U.S. technology.
And so, the U.S. export ban impacts them as well. So, you can see how far ranging that will be. And how it will make life incredibly difficult even for ordinary Russians. So, not only does it target some of those kind of critical sectors when you're looking at conflict like defense, but also your average Russian is going to be increasingly hard for them to make certain products.
Also, importing has got considerably more expensive. The ruble has lost some 15 percent of its value against the dollar since the start of the year. There were wide moves on the markets yesterday. So this, this reaction that we've seen in terms of the markets reacting to sanctions, expecting sanctions impacting people across Russia. This will hurt.
BRUNHUBER: Yes.
STEWART: But there are some things missing: oil, gas, and wheat.
BRUNHUBER: Yes. And then one of the other things missing, which they didn't do for now was excluding Russia from the SWIFT systems, which allow transactions between 1000s of financial institutions around the world, many countries, including Ukraine itself wanted Russia kicked off the platform. But they didn't take this step. Why not?
STEWART: And when we look at the sort of spectrum of sanctions, this was always on the sharp end, the most extreme, the one that could really inflict major damage to Russia, could have seen their economy shrink by five percent.
But there was huge division. And you know what? U.S. President Joe Biden spoke about it. Take a listen.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: It is always an option. But right now, that's not the position that the rest of Europe wishes to take.
(END VIDEO CLIP)
STEWART: And the divisions really were particularly within the E.U., within Europe. So, senior E.U. sources told us that on the one side, you had Poland, Estonia, Latvia, Lithuania, all supporting disconnecting Russia from SWIFT, making it incredibly difficult for it to do any kind of financial transaction with any other country across the world. Germany, Italy, Hungary, and Cyprus were against it, we're told. Now, these are countries with much stronger economic ties with Russia. And you've got to remember that a country like Germany is already facing major fallout in terms of energy. Its decision on Nord Stream to halt the certification process, it's hugely reliant on Russia for around a third of all of its energy needs.
So, you can see why there was division here. There has been actually, frankly, behind the scenes for weeks now. And this was discussed with the annexation of Crimea. It didn't happen then. The sounds we're getting from all sorts of leaders, even here in the U.K., U.K. Prime Minister Boris Johnson said nothing is off the table referring to SWIFT.
But if they don't implement this sort of measure, now, when you see a full scale invasion, when? Because at this stage, sanctions aren't really a deterrent. They are to cause economic pain.
BRUNHUBER: Yes. Well said. Anna Stewart, thank you so much.
[02:49:11]
BRUNHUBER: So, after the break, we'll head back to Michael Holmes in Lviv, and will tell you about U.N. concerns over the humanitarian situation in Ukraine. That some residents flee ahead of Russia's onslaught. Stay with us.
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HOLMES: Hello, everyone. I'm Michael Holmes, coming to you live from Ukraine, where some people are fleeing for safety amid Russia's invasion.
HOLMES (voice-over): Ukrainians were seen crossing into Poland all day on Thursday. Many on foot with whatever they could carry.
Polish officials say they are preparing a medical train to transport arrivals and hospitals are ready to receive 1000s of patients potentially.
The United Nations says up to 5 million people could be displaced in this conflict. The U.N. High Commissioner for Refugees says he's worried about what is happening on the ground.
(BEGIN VIDEO CLIP)
FILIPPO GRANDI, COMMISSIONER OF THE UNITED NATIONS HIGH COMMISSIONER FOR REFUGEES: We are gravely concerned about the fast deteriorating situation and ongoing military action in Ukraine. The humanitarian consequences on civilian populations will be devastating. There are no winners in war, but countless lives will be torn apart.
(END VIDEO CLIP)
HOLMES: Now, if you would like to help with Ukraine and humanitarian aid, just go to CNN.com/impact. [02:55:04]
HOLMES (on camera): Now, two Ukrainian citizens playing in North America's top basketball league, and they are condemning the war in their home country.
HOLMES (voice-over): Alex Len who is on the left, and Sviatoslav Mykhailiuk issued joint statements after the Russian incursion, saying, in part, a great tragedy befell our dear homeland, Ukraine. We categorically condemn the war.
Len took to the court on Thursday when his Sacramento Kings played the NBA's Denver Nuggets. Mykhailiuk plays Friday night with the Toronto Raptors.
HOLMES (on camera): Now, the head of Russia's space agency warns that U.S. sanctions could destroy cooperation on the International Space Station.
HOLMES (voice-over): There are currently four NASA astronauts, two Russian cosmonauts and one European working onboard the orbiting outpost. The ISS, of course, a collaboration among several countries, including the U.S. and Russia.
The station divided into two sections, the Russian Orbital Segment and the U.S. Orbital Segment.
HOLMES (on camera): Thanks for watching, everyone. I'm Michael Holmes live in Lviv, Ukraine. Our "BREAKING NEWS" coverage continues after a break.
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