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Ukraine's President Saying We Are Defending Our Country Alone; Air Raid Sirens Going Off In Lviv And Kyiv; President Biden Imposes Additional Sanctions, Putin Chose This War; Kharkiv Residents Turn Subway Station Into Bomb Shelter; Russian Businesses To Take Losses Over Invasion. Aired 3-4a ET
Aired February 25, 2022 - 03:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[03:00:00]
(COMMERCIAL BREAK)
MICHAEL HOLMES, CNN ANCHOR (on camera): Hello, everyone. Welcome to CNN. I'm Michael Holmes coming to live from Lviv in Ukraine with our breaking news.
Russian forces moving deeper into Ukraine. And appear to have their sights on the capitol Kyiv with heavy explosions from crews or ballistic missiles reported over the past few hours.
A Ukrainian official claims this video shows an aerial defense system shooting a Russian missile out of the sky. Ukraine and the U.S. fear the Russian plan to encircle the city after the government -- and go after the government and could in the process inflict widespread human rights abuses.
Now Ukraine acknowledges one of its fighter jets has been shot down over Kyiv. But it claims it has inflicted more than 800 casualties on Russian forces since the invasion started. Obviously, we have not been able to independently confirm that.
Meanwhile, Russian forces have been (Inaudible) airfields at 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 160 missiles.
Heavy fighting reported in north eastern Ukraine as well. Video posted on Twitter claiming to show a military academy on fire. CNN has witnessed heavy artillery fire in Ukraine's second largest city Kharkiv. Ukraine's president saying 130 of the soldiers have been killed since this invasion began. And he's urging Ukraine's allies to do more to help his country.
(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)
HOLMES (on camera): U.S. President Joe Biden has unveiled sweeping new sanctions on Russia. Although he admits it will take some time before Moscow feels the affects. He also says he 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. America stands up to bullies. We stand up for freedom. This is who we are. Make no mistake. Freedom will prevail.
(END VIDEO CLIP)
HOLMES (on camera): CNN senior international correspondent Jim Bittermann is live in Paris for us with international reaction. But first let's go to White House reporter Kevin Liptak in Washington.
And Kevin, how much will the sanctions impact. I mean, what effect will they have? Will they make any difference in the end?
KEVIN LIPTAK, CNN WHITE HOUSE REPORTER: Well, I think they will make a difference on the Russian economy. These are very tough sanctions. The White House says they're in fact unprecedented sanctions. I think the real question is whether they will have any effect on Vladimir Putin. And at this point that is an open question.
Putin of course, knew the scope of the sanctions for weeks. The president had been signaling what he was willing to do and that didn't prevent an invasion from going forward. So that is still of course an open question.
But these penalties are very severe for a country the size of Russia whose economy the size of Russia. It is in fact unprecedented what the president has put in place. There are restrictions on some of Russia's largest banks. There are restrictions on debt for a number of different sectors.
The president put new restrictions on Russian businessmen who are close to the Kremlin. And of course, their adult children to try to avoid a sort of an escape hatch for those sanctions. And sort of the center piece of these sanctions were the export controls which limit export of certain technology and that could have a real withering effect on certain sectors like military and aerospace.
It was significant that the president said today that it would take time for these sanctions to take effect. But it's also notable what he left off the table. Things like sanctioning Vladimir Putin himself. And also removing Russia from the SWIFT financial messaging system.
That was sort of one of the, quote, unquote, "nuclear options of sanctions" that had been considered overtime.
[03:05:00]
President Zelensky of Ukraine had called on the United States and Europe to take Russia off of the SWIFT banking system. In his remarks yesterday the president was frank and acknowledging that Europe just wasn't on board with that. Both the United States and Europe would need to be aligned on that if that was to go forward. So, these sanctions going into effect but the president making clear that we won't see the effects really any time soon.
HOLMES: All right. Kevin, thank you. Kevin Liptak in Washington, I appreciate it.
All right, let's go over to Jim Bittermann who is standing by in Paris. And Jim, the French President, Emmanuel Macron, he is really positioning himself as a kind of mediator between Moscow and Kyiv for a potential ceasefire agreement. Tell me more about what he's saying?
JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Absolutely, Michael. In fact, he announced at the European Council meeting that they are -- he had in fact had a phone call to Vladimir Putin last night at the behest of Volodymyr Zelensky, the Ukrainian president.
Basically, saying that Zelensky had asked him to call Putin and he demanded that Putin immediately ceasefire. Immediately lay down the arms and stop the attack on Ukraine. And he said obviously that had no impact at all. He also said that he had felt that Putin had been duplicitous all the way along. Here's what he had to say.
(BEGIN VIDEO CLIP)
EMMANUEL MACRON PRESIDENT OF FRANCE (through translator): So, yes, there was duplicity. Yes, there was deliberate conscious choice by President Putin to launch the war when we could still negotiate peace.
(END VIDEO CLIP)
BITTERMANN (on camera): And in fact, we have been listening to the foreign minister, Jean-Yves Le Drian this morning talking on French radio, basically he is saying that he feels that Putin is trying to scare people basically. Saying that he's trying to intimidate us, he wants to create fear. He knows very well the balance of forces in Europe and he says that the kind of sanctions the Europeans have announced over night there will asphyxiate and suffocate the Russian economy. Michael?
HOLMES: And Jim, you know, Macron was also the first major western leader to speak to Vladimir Putin after the Russian military actions began. Tell us more about that.
BITTERMANN: Well, he apparently, he wants to -- as he did leading up to the conflict. Macron wants to try to be the mediator here to negotiate between Kyiv and Moscow. But in fact, there doesn't seem to be much chance of that at the moment. Still, nonetheless, I think he's trying to position himself so that he would be the person to talk to if and when Vladimir Putin wants to stop things and start talking. Basically, it has to revolve on the question of ceasefire. If there is
no ceasefire, I don't think the French president is going to have much of a role to play. Michael?
HOLMES: I put those other question -- all right. Our Jim Bittemrann in Paris with the very latest. Thanks so much, Jim. Now joining me here on set is Maria Toma. Now, Maria, you are head of the Crimea platform department of the mission of the president of Ukraine in Crimea. But we are emphasizing you are here in your private capacity as a citizen of Ukraine.
And to that end, you are involved with the fallout from Putin's last invasion in this country. Crimea eight years ago. First of all, what do you think he wants this time?
MARIA TOMA, UKRAINIAN CITIZEN: As eight years ago when he started the war against Ukraine by occupying Crimea peninsula. He wants to seize Ukraine. He wants to prevent Ukraine from existing. Therefore, he just -- that's why he's doing what he's doing now. So, he bombs now Kyiv. They try to kept Kyiv. And of course, it may end up with capturing whole Ukraine. However, I have to say that Ukraine resists. That's the very important thing.
HOLMES: That is happening. That's for sure. I'm curious, you know, as Ukrainian citizen, you live in Kyiv. Right?
TOMA: Yes, I do.
HOLMES: You're here in Lviv at the moment, but you live in Kyiv. As a Ukrainian citizen, how do you feel about what is happening?
TOMA: I should have been in Kyiv now. But I'm here in Lviv because I was on my working trip and I did not manage yet to get back home. But I have to be there. What I feel is that -- I mean, that was not, to be honest, that was not a huge surprise for Ukraine in general. This further attack on Ukraine.
Because many people say that Putin started war on Ukraine. This war started eight years ago. It's very important to understand. And what I feel is first of all maybe that we need more -- first of all, I feel solidarity. Because Ukraine is very much united. Ukraine supports its government, its president. Ukraine supports Ukrainian army very much.
[03:10:03]
And Ukrainians they are very keen to defend ourself. They are entering the self-defense units all over the country. And that will make Russia or move further move Russian troops very hard, I believe.
HOLMES: Can you -- can you imagine a few weeks from now, a few months from now, that this country will not be ruled by President Zelensky but ruled by a pro-Russian person who is been installed by Vladimir Putin, can you imagine that?
TOMA: No, I cannot even imagine that. Because it's not, unlike Russia where everything is very much centralized on the one authority of one person or one group of persons. Ukraine has very strong civil society. And Ukraine has very strong sentiment towards freedom, towards democracy, and towards liberal values.
Therefore, I cannot even imagine how some pro-Russian person which is not welcome by Ukrainians will be ruling. And so, therefore I think that Putin is actually trying to blackmail the world to blackmail Ukraine to prevent Ukraine from entering NATO, to prevent Ukraine from reforming itself, from being developed. European country with a democratic strong democracy. So that's what he is trying to do.
HOLMES: What do you know about life in Crimea after the invasion? How has life there changed for the people?
TOMA: I know a lot as someone can know who is living in mainland Ukraine. I was in Crimea back in 2014 when the occupation started.
HOLMES: So was I.
TOMA: I was --
HOLMES: Yes.
TOMA: Yes. I was witnessing all that events and later I provided my testimony to the European Court for Human Rights also. So, and since then I was following the situation. I was in touch with some of the activists who are still in the field in Crimea. Mostly Crimean Tatar people, these are indigenous population of Crimea. And they are the most I would say vulnerable group of people currently in Crimea. They are under oppression.
At least 100 Crimeans Tatars are currently in the detention because of the politically motivated persecution. Also, Ukrainians all of the non-loyal population is actually squeezed out, swiped away from Crimea or just arrested and transferred to Russia or they are staying in the places of detention in Russia.
HOLMES: Yes.
TOMA: And in general, all the possible fundamental rights in Crimea they are just not existing.
HOLMES: Yes, of course the Crimean Tatars were brutally oppressed under the Soviet Union. Had the measure of freedom for a while and then Russia came in. So, they are facing oppression again. I really appreciate you coming in, Maria Toma. Thanks so much.
TOMA: Thank you.
HOLMES: And important conversation to have.
HOLMES: All right. Ukrainians are already fleeing their war-torn country and a potential humanitarian crisis could be brewing. We're going to look at what America is prepared to do to help them. Stay with us. We'll be right back.
[03:15:00] (COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNKNOWN: I feel angry. You know? I don't feel -- I don't feel helpless but I feel angry. And I feel like we need an international support.
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 action and some precautions and try to keep alert and mindful, and stay kind of clear minded. Because there's no point in panicking. It will only make it worse.
(END VIDEO CLIP)
HOLMES (on camera): Some thoughts there on the Russian invasion from residents here in Ukraine where we are broadcasting from. And now, an American ambassador to the -- the American ambassador to the U.N. says the Russian invasion might spark a humanitarian crisis that could displace as many as - wait for it - five million people. And the U.S. says it is prepared to help.
The White House press secretary Jen Psaki announcing the U.S. is ready to accept Ukrainian refugees and help Ukraine's neighbors handle the increase flow of people fleeing the country.
(BEGIN VIDEO CLIP)
JEN PSAKI, WHITE HOUSE PRESS SECRETARY: We certainly expect that most if not the majority want to go to Europe in neighboring countries. So, we are also working with European countries on what the needs are, where there is capacity. Poland, for example, where we are seeing an increasing flow of refugees over the last 24 hours.
(END VIDEO CLIP)
HOLMES (on camera): Now Peter Zalmayev is director of the Eurasia Democracy initiative. He joins me now on the line. And before we get to analysis, Peter, you and I have spoken many times. You are normally in your apartment in Kyiv. You are not at the moment. Tell me why and what you are doing.
PETER ZALMAYEV, REFUGEE EXPERT: Well, you know, this morning we woke up to another series of sonic booms (Inaudible) to southern outskirts of Kyiv. I have two small children and there was an opportunity to evacuate them quickly and driving, with currently driving towards the west of Ukraine, about an hour and a half from Kyiv. I'm hoping to get this over with quickly so I can return.
The president issued a call for all abled men to defend Kyiv. So, we'll definitely my friend and I were traveling in another car. We're like while we evacuated our (Inaudible), we're intending to come back to the capitol. It's a -- we're hearing that there are already, there's a fighting heavy fighting going on in Obolon, one of the districts adjacent to the very center of Kyiv. HOLMES: And just to confirm, you are going to be dropping the family
off to safety and going back to Kyiv, what, to fight?
[03:20:04]
ZALMAYEV: Well, I mean, what else is there to do? You know, it's a do or die situation for Ukraine. Putin let us know (Inaudible) it's uncertain terms that this is the issue of whether the Ukrainian state will survive. So, this is the really kind of name of the game at this point.
HOLMES: Kudos to you. I mean, I just see you in this analyst role and now I'm hearing you are dropping the family off fearing for their safety and about to go back and defend your country.
Let's talk a little about the analysis side of things. I read where you pointed out that people here in Ukraine, they are used to war over the last eight years. We know that. But most aren't used to it on their doorstep. And you are a living example of that. How do you see the population responding and reacting?
ZALMAYEV: Well, it obviously it's a state of shock. People are shell shocked. They are walking in (Inaudible) literally shell shocked. You know? People are still walking their dogs in early morning here in Kyiv. I have to say though there is no panic per se but you see people kind of dazed and confused. Walking down the road and trying to flag down cars with probably very little success.
Some roads leading to Lviv are just blocked. They are, you know, pretty much like jam packed and traveling moving at about less than, you know, eight kilometers an hour. You know? So, people are still -- I saw people walking their dogs. I mean, you know, most people will probably have to stay there. Nowhere to go.
I've seen some, you know, scenes of (Inaudible) people just like bloody murder. This is Russia taking Ukraine after Putin proclaimed Ukrainian a bloody invasion and this is happening. This could not be imagined in our worst nightmare. Even like what you said, Vladimir Putin -- it has been going on for eight years. So, this is the mother of all Russian city. This is where Russia called Kyiv. Kyiv (Inaudible). This is where it all began. I think that's (Inaudible) at this point. I mean, I can't even talk about it.
HOLMES: Putin, do you feel Putin really played the west -- do you feel that Putin played the west in this situation? What did the west do wrong? What can it do now to try to preserve Ukraine's independence if that is even possible now?
ZALMAYEV: Folks, I'm going to be blunt with you. After Biden -- I'm just dispirited after Joe Biden speech. And I'm presumed to speak on behalf of Ukrainians. I will of course have to be careful to say that Ukrainians are very thankful for any help they've gotten. But once this Pandora's box was open, and the NATO stood firmly against, you know, violating its own open-door policy and telling Putin what he wanted that Ukraine will never be accepted. He said it's not -- he said it's not our policy every country is welcome. Once they did that, they had to put their money where the mouth was.
You know, and there should have been a plan in place. If Putin attacks then there should have been a contingency plan. Ukraine should have been armed to the teeth. They should have been and armed with surface to air missiles. They should have been given aviation. And you know what, they should have would have understand.
But there was a warning. A clear warning sent back in the spring with the first, you know, the beginning of the spiral situation began. And the west and everyone was myopic. And everyone was looking around like nothing happened. And now this is -- now that this is happening, what I heard from Joe Biden is we're drawing this line, you know. NATO will be defended. Russia will be sanctioned.
But in all of that what I heard was that Ukraine will remain under Russia's fear of influence. Essentially, you know, I heard in Biden's message that Ukrainian will have to do it on their own. And this, you know, this is I think this is shared by most Ukrainians, politicians, you know, they feel like this is do or die.
I was at Munich Security Council conference a few days ago when the air space was still open. And in conversation with folks like James Mattis, the former minister of defense, secretary of defense of the U.S., and other former generals. We were told that Ukraine will be -- will be helped if Ukrainians show enough, you know, courage in them and resilience to fight.
I mean, we're talking about days. We're talking about days here. Help should be given within days. What I'm concerned about is that Vladimir Putin as you heard in his speech made it clear that he will probably, I mean, he hinted the use of nuclear weapons. If you came to Ukraine's defense, I will use nuclear weapons.
[03:25:07]
He's blackmailing the west. He's playing the game of chicken. It's political economy 101 who will work first. Yesterday, in Joe Biden speech no matter how well intentioned, I heard that America -- America will win the game of chicken with Russia. That's -- that's what I can tell you, my fear was.
HOLMES: Peter, before I let you go, something I asked the guest here not long ago, and I want to ask you too, can you, as a resident of Kyiv, can you even get your head around the notion that, you know, in a month, a week, days from now, your country will be run by a Russian- backed president?
ZALMAYEV: Very, very difficult to imagine. They have -- they kind of invade pulled this off in Donetsk and Luhansk over the last eight years with very, very, very mixed success. Kyiv is another ball game altogether. And first of all, I mean, the overkill is over. The fighting for Kyiv has only begun.
It seems to me Ukrainians are determined to make Kyiv, you know, a besiege fortress, another Stalingrad, if you will. So, before I even contemplate and answer to your questions, which I would say it's hard to imagine, indeed. I think, you know, whoever that part is will be, it will be ruling over a ruined city.
HOLMES: Peter, I'm glad you took the time to speak with us. Our thoughts are with you and your family. Please do take care. Peter Zalmayev, thank you so much. Be well.
ZALMAYEV: Thank you. I appreciate it. Thank you.
HOLMES: Like so much in this war trying to get my head around that. Peter Zalmayev is an analyst. He is an academic. And now he is fleeing to drop his family off and then go back to Kyiv and fight. Just think about that.
Well not everyone in Russia is on board with Vladimir Putin's assault on Ukraine. Coming up here on CNN Newsroom, we'll show you how some are even going to jail after protesting on the streets of the Russian capitol. We'll be right back.
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[03:30:00]
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MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT (on camera): Hi, everyone, I'm Michel Holmes in Lviv in Ukraine. And the Ukrainian president releasing an impassioned message this morning. Praising his people for their heroism in fighting this Russian invasion. But he also took a swipe at Western allies accusing them of not doing enough to get Russia to back off. Saying that sanctions won't cut it and quote, "We are defending our country alone while the most powerful country in the world looks on from a distance."
Powerful stuff. Now Kyiv is being attacked again today. Air raid sirens going off earlier. At least six new explosions rattling the Ukrainian Capitol. Ukraine's foreign minister calling the strikes the worst in Kyiv since World War II. The Ukrainian government says this dramatic video shows one of the missiles systems shooting a Russian rocket out of the sky.
Now we're also hearing troops blew up a bridge just north of the Capitol. To keep a Russian column of troops from advancing and the Ukrainian military says so far it is holding them off. The defense ministry announcing that it is has inflicted some 800 casualties on Russian forces. Not clear if that means death or injuries are included in that figure.
And of course, we cannot independently confirm that. Ukraine also says it's destroyed more than 30 Russian tanks and lost 137 of its own troops. Again, we can't confirm those numbers ourselves.
Meanwhile the Russian president defending the aggression, telling members of Moscow business community that he had no choice but to invade.
(BEGIN VIDEO CLIP) VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): I want to
underline that was such a desperate measure. It could have created such risk that no one knows how the country was to exist.
(END VIDEO CLIP)
HOLMES: But the U.S. President says Vladimir Putin chose this war and therefore must bear the consequences imposing the harshest sanctions yet on Russia.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES OF AMERICA: Putin's aggression against Ukraine will end up costing Russia dearly, economically and strategically. We will make sure of that. Putin will be a pariah in the international stage. Any nations counted as Russia's naked aggression in against Ukraine will be stained by association.
(END VIDEO CLIP)
HOLMES: That should the U.S. and Western allies be doing more, a source telling CNN that intelligence officials are keeping a lookout for any signs of potential Russian activity beyond Ukraine.
CNN Katie Bo Lillis joins me now from the Pentagon. And Katie, what are officials there watching tonight?
KATIE BO LILLIS, CNN REPORTER (on camera): Yeah, you know, really growing concern here in Washington and in the Pentagon tonight. That the sort of (inaudible) is really hanging over Kyiv over the Ukrainian Capitol tonight.
[03:35:04]
Senior Biden administration officials briefing Capitol Hill earlier this evening. Telling them that Russian troops that had moved into Ukraine from the north from Belarus had moved within 20 kilometers of the Nation's Capital and of course, we understand that Russian forces still hold an airport quite near to the Capitol of Kyiv.
Secretary of State, Antony Blinken, today saying publicly that the U.S. believes that Russia intends to try to encircle Kyiv. And so I think at this point defense and intelligence officials are pretty firm in their assessment that Russia intends to try to topple the Zelensky government in Kyiv. And we know from past reporting try to replace it with some kind of Russia friendly pro-Moscow proxy government.
HOLMES: I want to ask you this too. We just touched on this. Lots of questions to Biden administration officials today about whether Putin might have ambitions beyond Ukraine. Are they concerned he might and what would the West do?
BO LILLIS: Yeah. It's a great question, Michael. I have been talking to some of my sources about this tonight. You know, I do know from one source familiar with the matter is that Western and U.S. Intelligence officials are pretty closely watching for any potential Russian activity in the Western Balkans. Although they seem nothing out of the ordinary yet.
As well as closely watching Russian activity in Transnistria, which is the sort of Russian backed break away separatist region of nearby Moldova. You know, look, this is all part of this kind of lingering western concern that Putin's ambitions may extend beyond Ukraine. Blinken today asked pretty directly about this, said, you know, look you don't need intelligence to tell you that Putin wants to try to reconstitute the old soviet empire.
And so I think this is really just kind of prudent watchfulness by U.S. and Western intelligence officials. You know, into places that Russia has some degree of influence and whether some soviet history, Michael.
HOLMES: Yeah. The Transnistria aspect is fascinating. Moldova is a whole another country. So, fascinating to see what might happen there. Katie Bo Lillis at the Pentagon, I really appreciate that. Thanks so much.
Now President Vladimir Putin, he enjoys overwhelming support in Russia, not surprisingly given state media. But that has not stopped sporadic demonstrations in his own country against this invasion. According to independent media and local monitoring group, more than 1,700 people have been detained in antiwar protests around the country.
CNN's Nic Robertson reported on some of those arrests as they were happening.
(BEGIN VIDEO CLIP)
NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): Here's another man just being taken away and arrested here. This is happening literally by the minute. And I'm looking at another one, two people coming up behind Liviana, the camera woman. Two, three, four, five, six, at least six other people here. We have been talking in the past couple of minutes more than 10 people have been arrested.
(END VIDEO CLIP)
HOLMES: Now Russia bars demonstrations without a permit. But Russians can stage individual single person protests. Now some residents in Ukraine are leaving their homes and we have heard one major city turning a subway station into a bomb shelter. How they're holding up. That's coming up.
(COMMERCIAL BREAK)
[03:40:00]
HOLMES: All right. We have been hearing from people here in Lviv about the Russian invasion. They are worried they are concerned. They used to be just anxious about it. But they are now really quite frightened. And in Kharkiv, meanwhile, residents have turned a subway station into a makeshift bomb shelter.
CNN's chief international correspondent Clarissa Ward was there. She spoke to frightened but determined Ukrainians seeking safety.
(BEGIN VIDEOTAPE)
CLARISSA WARD, CNN CORRESPONDENT (voice over): Kharkiv residents scramble to find shelter. As Russia 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 Darya tells us.
DARYA, KHARKIV RESIDENT: It's like you wake up and it's not real. It's like 5:00 a.m. and if I know that the world is no longer the safe place you imagine. We are independent country, Ukraine. And we're totally not same as Russians and we don't want to be a part of Russia or any other country. I can't believe it's happening really.
WARD: 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. 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.
[03:45:00]
This is not a front line 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're being forced to literally camp out with their families, their pets, their loved ones, they grabbed 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 the new Ukraine will look like and what place they will have in it.
Many we approached are too overcome to speak.
They're very nervous.
Look at the situation around you. This woman says.
I'm so sorry. It's terrible, terrible situation.
There's no doubt here about who is responsible for this conflict. But few can understand why.
It's interesting. I just asked them, what do they think of President Putin? Do they think he's crazy? They said he's not crazy. He's sick. He's sick. We just want to live peacefully.
DARYA: I just hope that some people in Russia (inaudible).
WARD: A simple plea for mercy that has so far fallen on deaf ears.
(END VIDEOTAPE)
HOLMES: Yet again just put yourself in their position. I'm Michael Holmes in Lviv, Ukraine. I will be back with more at the top of the hour. Right now, let's head to Kim Brunhuber in Atlanta.
KIM BRUNHUBER, CNN ANCHOR (on camera): Thanks so much, Michael. As Russia opens a military front in Ukraine, it's facing push back on the economic front. Up next, we'll look at why the military invasion will mean losses for Russian businesses. Stay with us.
(COMMERCIAL BREAK)
[03:50:00]
BRUNHUBER: Always developments now in Ukraine as Russia pushes ahead with its invasion. Ukrainian officials say one of its fighter jets was shot down over the Capitol of Kyiv, Friday. This government photos appear to show a home that caught fire after pieces of a plane fell on it. Now it's not clear if those are the remnants of the Ukrainian jet that was shot down.
Ukraine's foreign minister is slamming Russia for what he called horrific rocket strikes on Kyiv. He says the city hasn't seen something like that since World War II. Ukraine also says it blew up a bridge 50 kilometers north of the Capitol to stop the Russian advance.
But as Moscow tries to push further into Ukraine, the U.S. and its allies are taking aim at the Russian economy. Given out sweeping new sanctions designed to hurt Russia's banks, state businesses and its political elite.
Anna Stewart joins us from London for reaction on the financial market. So, let's go through the sanctions. What do they cover and how are they affecting the markets?
ANNA STEWART, CNN PRODUCER (on camera): These are much broader sanctions compared to what we had earlier in the week from the U.S., from the E.U., from the U.K. and others. Now Russian banks are being targeted here and much bigger banks than we saw previously. Essentially Russian banks are being cut off from financial markets. Assets had been frozen and sanctions are far reaching with DBT, which is Russia's second biggest bank facing full sanction now from the U.S. and the U.K.
They are also targeting other companies. Particularly in sectors like defense. Say Russian companies that make tanks, ships, missiles. They are now facing sanctions. The list of individuals, oligarchs. People close to President Putin had been expanded as well, and their families.
So, Europe will no longer be a second home for many Russians there. The assets will be frozen. There are travel bans being put in place. And then there's a really interesting measure relating to export restrictions from the E.U., and U.S., and the U.K. They are very much targeted at technology. Making sure that Russia can't access certain technology that they really rely on. Particularly in defense, but also other sectors.
And just to give you an idea, Kim, of how far reaching that is. When you look at the U.S. and their decision to do this, it impacts a chip maker in Taiwan. The world's biggest chip maker. They use U.S. Technology, therefor they cannot sell their semi-conductors to Russia.
What's also interesting is what not -- what is not on the list. And obviously that is oil. That is gas. That is wheat. That is metal. Russia is still able to sell those products. They are its biggest revenue drivers and of course Swift.
BRUNHUBER: Yeah. Well, let's talk about Swift, right? One of the things they didn't do was exclude Russia from that Swift system which allows the transactions between those thousands of financial institutions around the world. So, why didn't they take that step which many countries including Ukraine were pushing for?
STEWART: Yeah. And it's being discussed now for weeks behind closed doors. And this really has the ability to really devastate Russia economy. You can see its economy shrink by 5 percent. But there was some serious division. And that's actually something that U.S. President Joe Biden spoke about last night. Take a listen.
(BEGIN VIDEO CLIP)
BIDEN: It is always an option but right now that's not the position that the rest of the Europe wishes to take.
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[03:55:00]
STEWART: Now senior E.U. sources told us this is where the split was within the E.U. which is where Swift is based. So you have Poland, Estonia, (inaudible), Lithuania wanting to disconnect Russia from this financial payment system. Germany, Italy, Hungary, and Cypress didn't. Their countries with really strong economic ties to Russia.
Germany is already, of course, is facing potential huge fall out in terms of energy due to Nord Stream 2. That is why that we're seeing such division. We just had the U.K. defense minister speaking on the BBC saying that U.K. would have liked to have seen that measure enacted, Kim.
BRUNHUBER: Yeah. Thanks so much. Anna Stewart, I really appreciate it.
And thank all of you for watching the "CNN Newsroom." I'm Kim Brunhuber and the news continues with Michael Holmes live from Ukraine after this short break. Stay with us.
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