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Biden Warns Putin As Bombs Drop On Ukraine; Biden: War On Ukraine "Premeditated And Totally Unprovoked"; Biden: Putin Now Isolated From The World More Than Ever; Civilians Killed and Wounded Since Russian Invasion; Oil Price Hike in U.S.; World Affects Stock Markets, Trade, and Economy Due to Russian Invasion of Ukraine. Aired 2-3a ET

Aired March 02, 2022 - 02:00   ET

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


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[02:01:07]

MICHAEL HOLMES, CNN INTERNATIONAL ANCHOR: Hello, everyone. I'm Michael Holmes coming to you live from the Lviv, Ukraine. Ahead this hour, premeditated and unprovoked. President Biden calls out Russian aggression and sends a warning to Vladimir Putin as bombs continued to drop and fighting rages on throughout Ukraine.

ROSEMARY CHURCH, CNN INTERNATIONAL ANCHOR: And I'm Rosemary Church live from CNN world headquarters in Atlanta. Mr. Biden also used his State of the Union Address to pitch his store domestic agenda and address the economy telling Americans we're going to be OK.

ANNOUNCER: This is CNN Breaking News.

HOLMES: Well, the U.S. President immediately went after Russia during his first State of the Union Address tearing into the Russian President Vladimir Putin for his "Menacing ways and tyranny." And saying when dictators are not held accountable, they cause even more chaos. Joe Biden's stressing the importance of America's strong partnerships with key allies like NATO and the E.U. who have taken a united stance against the Russian invasion.

Now he added that their collective sanctions have left Russia's economy reeling, and President Putin has never been more isolated.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: Putin's latest attack on Ukraine was premeditated and totally unprovoked. He rejected repeated, repeated efforts at diplomacy. He thought the Western NATO wouldn't respond. He thought he could divide us at home in this chamber in this nation. He thought he could divide us in Europe as well. But Putin was wrong. We are ready. We are united and that's what we did. We stayed united.

(END VIDEO CLIP) HOLMES: Now during his address, President Biden announced a ban on

Russian aircraft in U.S. airspace and promised to go after Russian oligarchs and their "ill-gotten gains." He also praised the grit of the Ukrainian people and said the Russian president met a wall of strength he never imagined. But those people of course continue to suffer. Minutes ago, we got word that two large explosions overnight have jolted Kharkiv, which is Ukraine second largest city.

Very close to the Russian border and you can see them there lighting up the sky. The country's public broadcaster reports that fighting between the Russian and Ukrainian militaries broke out overnight, but it is not clear if those blasts are related to that fighting. Meanwhile, the United Nations estimates at least 136 civilians have been killed since Thursday but says the true death toll is undoubtedly higher than that.

Now these images posted online show the fiery rubble after a strike outside Kiev tore through several apartment blocks. The capital still bracing for a major assault. Further south, the Russian military appears to have taken at least part of the city of Kurtsan. Newly obtained images show their tanks and trucks parked in a main square. This coming as the number of people fleeing the invasion approaches 700,000 now according to the U.N.

Which warns that this conflict could create Europe's largest refugee crisis this century. Let's bring in CNN Senior White House Correspondent Phil Mattingly who's live in Washington. Good to see, Phil. The State of the Union. It's normally about sort of, you know, connecting with the American public for a president but Biden had a lot of audiences for this year's speech and sent messages to Putin, Zelensky as well as U.S. allies. How well did he fill those buckets?

PHIL MATTINGLY, CNN SENIOR WHITE HOUSE CORRESPONDENT: You know, look, Michael, when you go back to when President Biden first started, and thinking through what he wanted to say in his first State of the Union, a critical global geopolitical crisis was not anywhere near the top 10, maybe 15, maybe 20 of the issues that he wanted to focus on. And yet that is the reality of this moment.

[02:05:06]

MATTINGLY: The first 12 minutes of the speech, a 60-minute speech all about Ukraine all about this moment that they are in. I think when you talk to White House officials leading up to this speech, they made the same point you kind of laid out there. They wanted to deliver a direct message to Vladimir Putin. They wanted to deliver a direct message to the Ukrainian people. They wanted to explain to the American people why this is such an essential moment in time.

Why the U.S. needs to lead. But I think one thing you saw that I thought kind of stood out more than anything else. Yes. This is about Ukraine. Yes, this is about Russia's actions as it relates to Ukraine. But it's bigger than that, the President made very clear. This is an existential moment, where the west, the Western alliance is needed to come together, needed to unify because this is about kind of the stakes for democracy. The President often looks at things through that lens, democracies versus autocracies has been a theme that I've heard repeatedly over the course of the last 13 or 14 months. But this was about the ability to kind of shake, loose almost wake up, those Western alliances that have been disjointed, have been disparate at various points over the course of the last several years, particularly under his predecessor and explain why there's such value to those relationships.

And in that lens, making clear that what we've seen over the course of the last 72 hours, last four days, particularly when it comes to the sanction's regime, is a level of unity that simply hasn't existed over the course of the last four or five years. And while there will be no U.S. troops on the ground in Ukraine, that unity, those sanctions that willingness to rally, not just America, not just Ukrainians, but really the entire Western world is critical at this moment, Michael.

HOLMES: Indeed. Thanks for the wrap up there, Phil. Phil Mattingly live in Washington for us.

All right. So, what kind of support does Ukraine want or need. The country's president and its foreign minister both spoke with CNN earlier, and they're urging the U.S. and NATO to help Ukraine take back the skies against Russian dominance.

(BEGIN VIDEO CLIP)

DMYTRO KULEBA, UKRAINIAN FOREIGN MINISTER: So, yes, we are fighting in the air. But physically, Russia has more plans to deploy -- to deploy to Ukraine than we have. So that's why we put such an emphasis on air defense and Air Force, and also missile defense because missiles are extremely, extremely dangerous. They hit civilian neighborhoods. They hit indiscriminately. They kill a lot of people. They destroy our cities and we need to better protection from the sky.

VOLODYMYR ZELENSKY, UKRAINIAN PRESIDENT (through translator): I've already turned to some foreign leaders with this request. I believe that leaders must support Democratic states of the world who are keen to defend such principles. This powerful issue of closing the airspace helps us tremendously. This does not mean dragging NATO into this war.

(END VIDEO CLIP)

HOLMES: Now those pleas coming as more and more Russian shells rain down on Ukraine cities, hitting civilian and military targets alike. CNN's Alex Marquardt reports.

ALEX MARQUARDT, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): A key government building in central Kharkiv swiftly destroyed in a Russian striker. Video show extensive damage from missile and rocket attacks in the center of Ukraine's second biggest city suggesting that Russia's invasion is becoming less focused on attacking military targets. The violence becoming less restrained.

Emergency responders in Kharkiv removed a dead body from a building that was shelled. Amid reports of attacks on civilians, Ukrainian president has accused Russia of committing war crimes. ZELENSKY: They are fighting against everyone. They are fighting against all living beings against kindergartens, residential buildings, against ambulances. They use rocket artillery, missiles in city districts where there are not and never were any military facilities.

MARQUARDT: Russia is ramping up its offensive across Ukraine. This map shows troop movements attacking Ukraine from three sides.

The southern city of Mariupol now nearly surrounded and under attack. And U.S. officials say another wave of Russian troops is likely on the way but an emotional President Volodymyr Zelensky told the European Parliament that the invasion will not break Ukraine's spirits.

ZELENSKY: We are fighting for just our land and for our freedom. Despite the fact that all large cities of our country are now blocked. Nobody is going to enter and intervene with our freedom and country.

MARQUARDT: Ukrainian resistance continues. Here civilians charging a Russian vehicle in the city of Kupyansk, not far from Kharkiv. Citizens are also taking up arms and making Molotov cocktails in an effort to aid the Ukrainian military which is far outnumbered and outgunned by Russia.

Satellite images show a massive Russian military convoy 40 miles long on the outskirts of Ukrainian capital.

[02:10:03]

MARQUARDT: Tanks, armored vehicles and towed artillery moving closer to Kiev. On Tuesday, the Russian military warned that it will carry out strikes against Ukraine's state security agency and other government infrastructure in Kiev according to Russian-state media.

At dusk on Tuesday, a T.V. tower on the outskirts of Kiev appeared to be targeted by a missile. Russia has insisted throughout its invasion that it is not hitting civilian infrastructure. Images from across Ukraine of apartment buildings being hit in densely populated areas are showing a starkly different picture. Alex Marquardt, CNN, in the Kiev region.

(END VIDEOTAPE)

HOLMES: And joining me now is Volodymyr Yarmolenko. He is a writer, journalist and philosopher in Kiev. He is the editor-in-chief of Ukraine World and host of the Explaining Ukraine podcast. It's great to have you with us and I was listening to your podcast just yesterday, firstly, and most importantly, how is life in Kiev right now? How is life for you? How is morale?

VOLODYMYR YARMOLENKO, UKRAINE WORLD CHIEF EDITOR: The morale is very strong Ukrainians are resisting and there is no talk about any surrender. So, Ukrainians will fight until the end. And we are on our land and there is decisiveness anywhere in any -- every city in Kharkiv, in Kiev, in Dnipro, in Mariupol. But this is of course, as you said in your reports, this is also a horrible crime, horrible war crimes by Putin's regime against Ukrainians and against humanity.

HOLMES: The U.S. president in the last few hours spoke of Ukraine at his State of the Union. He spoke of U.S. and global support for the Ukrainian people saying it's a fight between freedom and tyranny. Nothing more specific than that. What is it you wanted to hear from him? Is that enough?

YARMOLENKO: Well, of course, Ukrainians needs support. Ukrainians need support primarily in the skies, in the air. Ukrainians need more air defense. Ukrainians need basically establishment as safe zone by international community, which will prohibit to Russia and Belarus attack. I asked from the skies because the key advantage of Russians is unfortunately in the air. So, Ukraine needs more support in this.

HOLMES: It would appear Russia is preparing for what could be a brutal assault on your city. How will Ukrainians defend Kiev? What are people telling you?

YARMOLENKO: Well, they are already defending. There are many people who joined the Territorial Defense. Kiev right now is -- there are checkpoints on all the roads which lead to Kiev and basically the key of dwellers and the Ukrainian army is ready to, you know, resist the aggressor. We see the huge column which is accessing Kiev but at the same time we see many successes of Ukrainian army over 6000 Russian soldiers dead already.

Lots of vehicles, lots of tanks already destroyed. So, you see the decisiveness of Ukrainians to defend.

HOLMES: You have often spoken well before this invasion about democracy in this country, how it has expanded in Eastern Europe. What is it like to contemplate and no one obviously hopes it will happen but even contemplate life under Russia's thumb?

YARMOLENKO: It's impossible to contemplate Ukrainian society will never do that. And Putin is miscalculating thinking basically that opposition to Russia just small part of Ukrainian society. Now when he is bombing Kharkiv, the mostly Russian speaking city in eastern Ukraine. It's clearly that people in the eastern Ukraine, southern Ukraine, mostly Russian speakers are hating this Putin's regime.

So, I don't know what Putin thinks about, what is the calculation because he's living in a -- in a nightmare. he's living in a -- in a great illusion about Ukraine. He doesn't understand anything about Ukraine. And of course, Ukrainian society, you see in small towns and villages, how they greet the Russian occupiers. And it's unthinkable for us that, you know, we come back to any kind of totalitarian regime. So Ukrainian Democratic traditions is very strong.

[02:15:00]

YARMOLENKO: It's very -- going back to centuries, to 17th century, to 16th century, even back to Middle Ages. Ukrainian political identity, political culture has always been focused on anti-tyrannical values. And that's what makes it so different from the Russian political culture. HOLMES: All right. We're almost out of time, but I wanted to ask you this. And of course, the fact is, there was no reason for this invasion. Putin claimed that his concern is NATO expansion. But I know that you said, it's not about NATO expansion. It's about Russian expansion. I saw you write that. What did you mean by it?

YARMOLENKO: I mean, that Russia has felt the weakness of the West, it felt that the West is retreating a little bit, that the West is not really believing in Democratic values anymore. So, it tried to reestablish not in Soviet Union but the Russian Empire. Let's be clear about that. Putin is much more archived than Soviet Union. Soviet propaganda accepted the existence of Ukrainian and Belarusian nations as separate nations from Russians.

Putin's propaganda does not accept it. So, he wants to come back to this 19th century Russian Empire. And -- but Ukrainians are showing that they're not going to cede any centimeter of our land. But of course, Russia is, you know, in these years, Russia is feeling that it wants and it can extend. And I think Ukraine will be the country which will show that Russian extension has clear limits.

HOLMES: Certainly doing a good job of that so far. Volodymyr Yarmolenko in Kiev. Thank you so much. We wish you well. And please do your best to stay safe. Thank you.

YARMOLENKO: Thank you.

HOLMES: All right. We will have much more from Ukraine coming up. But first, let's go over to Atlanta and Rosemary Church. Rosemary.

CHURCH: Thanks so much, Michael. We'll see you again soon. So, coming up. President Biden's State of the Union speech which focused on the precarious situation in Ukraine, and economic challenges in the United States.

(BEGIN VIDEO CLIP)

BIDEN: This is our moment, to meet and overcome the challenges of our time, and we will.

(END VIDEO CLIP)

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[02:21:12]

CHURCH: Welcome back, everyone. Where U.S. President Joe Biden's first State of the Union Address comes at a time of extraordinary global unease and dissatisfaction of home. He began with a focus on Ukraine warning Russia, it would pay a price for its unprovoked and premeditated invasion. The President led lawmakers in a bipartisan standing ovation in support of Ukraine, and its ambassador in the First Lady's box.

Then, Mr. Biden pivoted to domestic issues saying the fight against COVID-19 continues, but business lockdowns and school closures are over. He pledged to fight the highest inflation in 40 years by pushing for a return to American manufacturing and the creation of more jobs and ended with a call for renewed commitment to democracy.

(BEGIN VIDEO CLIP)

BIDEN: Much better -- now is the hour. Our moment of responsibility, our tests of resolve and conscience of history itself. It is in this moment that our character this generation is formed. Our purpose is found. Our future is forged. Well, I know this nation will meet the test.

(END VIDEO CLIP)

CHURCH: CNN's European Affairs Commentator Dominic Thomas and Senior Political Analyst Ron Brownstein. Join us now for more analysis on the speech. Welcome to you both. Great to have you with us.

(CROSSTALK)

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: Thank you, Rosemary.

CHURCH: So, Ron, let's start with you. As expected, of course, the war raging in Ukraine was a major focus of President Biden's State of the Union Address. He slammed what he called Putin's premeditated and unprovoked war, but he also addressed America's record inflation, surging gas prices and the COVID pandemic. Did he successfully strike a balance between global concerns for Ukraine and the grave concerns that Americans have right now about the economy?

BROWNSTEIN: Yes. By and large, I think he did. He probably spoke a little less about Ukraine, even though he placed it at the front end of the speech than I think some people expected and pivoted back to his domestic agenda. But I guess I was struck, Rosemary, by one consistent thread through the speech which is that Biden tried to blend together ideas that are often thought of as incompatible in American politics.

I mean, he was both conciliatory and confrontational toward Republicans at various points. He took credit for the gains the economy has made to this point, but also was very clear in trying to signal concern for those who are most affected by inflation and continuing economic turmoil. As you said, he kind of said this is the moment to come out from the -- from the pandemic but also underscored his -- the need to continue to plan for the next upsurge.

I mean, it was a very particular and personal course. It wasn't the kind of course correction that we saw with Bill Clinton's 1996 State of the Union, the era of big government is over, but neither was it kind of just straight ahead on the same themes and strategies that have, you know, proves so difficult for him in the first year. It suggests to me that he is a president who still believes in his own political compass, even as events have caused many in both parties to question.

CHURCH: And Dominic, this, of course, was a State of the Union Address, not only for the American public, but also for a global audience, particularly for NATO allies, the E.U. and of course, the people of Ukraine. Was President Biden tough enough on Putin? Did he need to go further perhaps and declare him a war criminal and did he need to offer more in terms of arming Ukraine and NATO Allies?

[02:25:05]

DOMINIC THOMAS, CNN EUROPEAN AFFAIRS COMMENTATOR: All great questions, Rosemary. I think first of all referring to him as a dictator, was an important thing to say. And I think juxtaposing democracy and autocracy, and also unambiguously reaffirming his commitment to the multilateral order to organizations like NATO and the European Union would have been music to everybody's ears.

I think that the speech though, would have been received differently in different parts. So, I think that if you clearly -- if you're in Estonia, Lithuania, Latvia and Poland, hearing the American President talk about the fact that any incursions west by the Russian army, and other words into E.U. or NATO territory would be a red line, would have been incredibly reassuring. And I think that when you look at President Zelensky and a day for Ukraine, he spoke by video conference to the European Union received a standing ovation.

And it was very moving to see his ambassador to the United States received a standing ovation in Congress. But I do think that where President Biden would not have reassured him completely, is that the absolute priority and then to this extent, there are competing objectives for the Ukrainian president is to make sure that his country is not subjected to further incursions or broken up.

Whereas there's tremendous concern in the United States and amongst Western allies for the potential -- for escalation and of course, for recourse to nuclear weapons. That is something that President Putin has exploited thus far. But I do think what was clear to conclude from President Biden's speech was the fact that it was clear a message to President Putin that he has grossly underestimated the will of the West to come together and to support Ukraine in whatever shape or form it can, while avoiding escalation.

CHURCH: And Ron, President Biden, of course, it has to be said he's struggling right now with an approval rating at 41 percent. That is, according to the latest CNN poll of polls. How convincing was he that he understands the plight of most Americans? And is equipped to turn their economic woes around with inflation at record highs? Gas up 40 percent. And did he successfully set the course for the midterm election in November do you think?

BROWNSTEIN: He dropped breadcrumbs about where he's going on the midterm election. As you point out, he is really at a low ebb, 40 percent or so in job approval is a number that strikes fear in the hearts of Democratic candidates because as we -- in the last 20 years or so, we've gotten to a point where something like 85 or 90 percent of voters who disapprove of a president vote against his party's candidates in the midterm election.

So, Democrats clearly need some recovery from the President to have a fighting chance in November. I thought he faced a little bit of a conundrum. I mean, the two biggest problems he has in public opinion polling. One is that what you mentioned, inflation. People are really unnerved by the rising prices. The other is the sense that he's not a strong leader. And to some extent, the way he solved the first problem in the speech tonight may have exacerbated the second problem.

And by that, I mean, his solution to inflation was largely elements of the Build Back Better agenda. Provisions that would reduce prices for prescription drugs, like insulin and utility costs, and childcare costs and health care premiums. All of which are quite popular with voters. But the fact that he highlighted them really only draws attention to the fact that he's not been able to pass them.

And there really isn't any indication yet whether Joe Manchin is going to allow them to pass any of them. So, he had a -- he has some armor or tools to kind of wield against the concerns about inflation. What isn't clear is whether he has a pathway to actually bring them into law.

CHURCH: And Dominic, President Biden has shown the world that he can unite NATO allies and get them all on board to apply these severe economic sanctions on Putin and Russia's oligarchs in order to apply unprecedented pressure on Russia and the hope to stop this war. But uniting America appears to be a greater challenge for him, doesn't it? Was there anything he said in his State of the Union Address that signaled he could unite not only the country, but also his own disenchanted Democratic base?

THOMAS: I think -- I think Ron pointed to that. I mean, this was the bipolar aspect of what he said today, the State of the Union is, of course to address the State of the United States today. Having said that, the broader global context is extraordinarily important. And there is so much uncertainty with how this is going to unfold in Europe in Ukraine. There is so much uncertainty about the kind of commitment that might be required down the road and how this conflict could also play out and impact the U.S. economy.

[02:30:06]

I think that the early part of the speech, we saw this tremendous unity. And there was clearly a message to, sort of, demonstrate internationally that the kind of unity that he is attempting to build at home needs to be -- or needs to mirror, rather, the kind of international diplomatic success that he is enjoying at this particular moment. But I think when it comes to the, that sort of, past, sort of, first 10 minutes of a speech, you saw him dealing with a whole range of problems and uncertainties.

And you could see the shadow of that midterm election hanging over him eight months down the road. And in a way, there was a disconnect between those two particular moments in the speech where currently the international, sort of, unity and solidarity is there. But clearly, as Ron has pointed out, within the domestic environment, there is a lot of tension there.

CHURCH: Yes, certainly. He's had so many challenges, hasn't he, since he's been on office. Ron Brownstein, Dominic Thomas, thank you to you both.

BROWNSTEIN: Yes.

CHURCH: We will see you back here live next hour for more analysis. Appreciate it.

Well, still ahead, here on CNN, refugees flee Ukraine in search of peace. We will have the stories of those who left everything behind to escape war and remain unsure of what's ahead.

Plus, Ukraine says airstrikes damaged a holocaust memorial in Kyiv. We go live to Jerusalem after the break to hear Israel's response.

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HOLMES: And welcome back, everyone. I'm Michael Holmes, live in Lviv, Ukraine. And just a few hours ago, U.S. President Joe Biden delivered his first State of the Union speech.

[02:35:00]

He began by underscoring unity between America and its allies against this Russian invasion of Ukraine. The president celebrating the impact of severe sanctions put on Russia and its oligarchs. All of this, of course, as new fighting raged overnight.

Residents in Kharkiv say a large explosion shook the city late Tuesday as Ukraine battled Russian forces nearby. It's unclear if the blast was directly related to that fighting, specifically. U.S. President Joe Biden praising the courage and the strength of Ukrainian people for defending their country saying, "Freedom will are always triumph over tyranny."

(BEGIN VIDEO CLIP)

JOE BIDEN, U.S. PRESIDENT: Six days ago, Russia's Vladimir Putin sought to shake the very foundations of the free world. Thinking he could make it bend to his menacing ways. But he badly miscalculated. He thought he could roll into Ukraine and the world would roll over. Instead, he met with a mall of -- wall of strength he never anticipated or imagined. He met Ukrainian people.

(END VIDEO CLIP)

HOLMES: Joe Biden also announcing a ban on all Russian aircraft out of U.S. airspace. And while the economic sanctions and penalties are significant, of course, it is the people of Ukraine who are suffering the most, it's always the people who do in war. The U.N. says, at least 136 people have been killed since Russia invaded last week and another 400 civilians have been wounded.

And, we've heard moments ago, the Russians now claiming full control of the City of Kherson. Now, the United Nations Refugee Agency, meanwhile says, the exodus of people fleeing this country could become Europe's largest refugee crisis this century. More than half a million people have already left Ukraine for neighboring countries that are providing what they can for those who left with nothing.

CNN's Sara Sidner spoke with people who just crossed the Polish- Ukrainian border.

(BEGIN VIDEO CLIP)

SARA SIDNER, CNN CORRESPONDENT (voiceover): A train station near the Polish-Ukrainian border. Refugees crush in to every sliver of space. Their whole lives in Ukraine abandoned for now. We find Yulia, tired, tearful, the single mother she fled her homeland for one reason, her six-year-old son.

YULIA, UKRAINIAN REFUGEE: My city was occupied by the Russian army and were leaving from Russian soldiers and shooting and bombing. It's very horrible. So, I was trying to save my son and to get outside of the country.

SIDNER (voiceover): She wakes her son, Roman, it's been five days of traveling hell. But a relative arrived. Yulia is relieved, but racked with guilt. Her mother is stuck in Ukraine.

YULIA: I still -- I cannot realize everything that have happened because I left my job, my whole apartment, everything. My mom, lives in a town next to -- is also occupied and shooting there every day. And I'm feeling sorry that I couldn't take her with me.

SIDNER (voiceover): Loss and uncertainty is a constant companion of a new refugee. Sometimes, a simple comfort is all they can hope for.

Poland is trying to provide that. There are flyers that say, dear Ukrainians, we're waiting for you on the Polish side of the border. Welcome, to Poland. Others offers jobs, food. Polish families are even offering rooms in their homes. But some refugees say, not everyone is being welcomed and helped with open arms.

SIDNER (on camera): This is Przemysl, Poland at the train station. And you can see it is teaming with people. There are droves in droves of people coming off the trains because we're about 20 minutes from the closest major border crossing with Ukraine. We're not just seeing native Ukrainians. We're seeing people who are residents of Ukraine from all over the world. We're seeing Afghans, we're seeing Cameroonians, we're seeing Nigerians, we're seeing Nepalese. Some of them are students. They're all desperate to figure out one thing for tonight, somewhere to sleep peacefully.

SIDNER (voiceover): Even in the low freezing temperatures, that won't happen for these people. Mostly Afghan and African immigrants.

NAYA, UKRAINIAN REFUGEE: Of course, we are from Ukraine. All of us we need help.

SIDNER (voiceover): Naya doesn't want her to face shown. Afraid her criticism will make her a target of more abuse but she says, she herself experienced and witnessed racism at play as she tried to flee Ukraine on a free train.

[02:40:00]

NAYA: All the black guys, no, no, no. There was one inside the train, they went inside the train and I show him gun. Walk out.

SIDNER (on camera): They put a gun to a black man's face?

NAYA: Gun on his face. And say, walk out. And he walked out because he was scared of gun.

SIDNER (on camera): So, you're telling me that there's discrimination by the Ukrainians against black people?

NAYA: Seriously discrimination about black people entering the train, the free train. They help their people. They do not want to help blacks.

SIDNER (voiceover): She says, it was Ukrainians first. A people who she says, had until now been warm and welcoming to her and her family during their 10 years living there. A half a million refugees, according to the U.N. are on the move out of Ukraine. A staggering number, carrying their own unique horror story about how to survive an unprovoked war. Sara Sidner, Przemysil, Poland.

(END VIDEO CLIP)

HOLMES: Now, Ukraine's President says, airstrikes in Kyiv have hit a site honoring victims of the holocaust. The Babyn Yar Holocaust Memorial is in near a TV tower that was damaged on Tuesday, at least five people reportedly killed in that strike.

Joining me now for more is Hadas Gold in Jerusalem. And Hada, some really strong reactions out of Israel to this. What are you hearing?

HADAS GOLD, CNN CORRESPONDENT: Well, Michael, I just want to sketch out what Babyn Yar is. It's the site of one of the worst atrocities of the holocaust, where in 1941, of the course of just about two days, more than 30,000 Jews were murdered. Their bodies piled in mass graves. It is now a large complex with several memorials spread out across the site.

And according to spokespeople for the site, yesterday they said, missiles landed in the complex built in the grounds of the old Jewish cemetery. They say, they're still trying to assess the extent of the damage. But that -- they do have damage of about 100 meters from the Menorah Memorial. As you know the reaction have been swift. And many pointing out the irony of Vladimir Putin saying he wanted to invade Ukraine partly to fight neo-Nazis, and yet now, one of the Russian missiles may have severely damaged one of the largest memorials to victims of the Nazis. Yair Lapid, the Foreign Minister for Israel saying in the same, that they condemned the attack. They're calling for preserving and respecting the sanctity of the site. They say that Israel will assist in repairing the damage and continue to follow the events and express their regret for the injury to human life.

But one thing missing from Yair Lapid's statement is the word Russia. Now, while Israel has condemned Russia's actions, Russia's invasion, they've signed on to the U.N. resolution, they are providing humanitarian assistance to Ukraine. Israel is still sort of walking this diplomatic tightrope between their competing interests between Ukraine and Russia. Because Israel essentially believes that its Northern border with Syria may as well be a border with Russia and they're trying to be very careful. Also, because they say they're trying to protect Israelis and Jews in both Ukraine and Russia, which have very, very large Jewish populations.

But actually, in a couple of hours, Michael, we're expecting to hear, sort of, ironically with the timing, both Israeli Prime Minister Naftali Bennett and the German Chancellor Olaf Scholz who will actually be at the Yad Vashem Holocaust Memorial and Museum here in Jerusalem. This had been planned in advanced. But we are expecting to hear statements from them and we will have to wait and see whether the Israeli Prime Minister Naftali Bennett will go even further in condemning Russia for their actions. Michael.

HOLMES: Yes, the claim to denazification of this country is absurd when you see that sort of thing. And also, the fact that this country has a Jewish president. Hadas Gold in Jerusalem, appreciate it. Thank so much.

All right. Quick break here on the program. When we come back, more companies cutting ties with Russia over the invasion of Ukraine. How its economy is faring amid a backlash from around the globe. That's after the break.

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[02:45:00]

JB STRAUBEL, CO-FOUNDER & CEO, REDWOOD MATERIALS: Redwood Materials is a sustainable battery materials company. So, you know, we focus on building a closed loop ecosystem for lithium-ion batteries. We recycle old lithium-ion batteries, of all different types, both automotive but also consumer electronics. We take the materials out of those batteries, refine them, extract them, and then remanufacture them into new components that can go directly back into battery manufacture. So, I see this eventually, you know, going to be the vast majority of the materials. They're going into batteries that will be recycled on the future. Batteries are amazing because they are so recyclable. More than 90 percent of the materials, those critical materials in the battery can be reused many, many times without degradation. I think people are really realizing the benefits of having a high recycled material content, both in terms of the environmental footprint of the batteries, but also the cost of those materials.

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HOLMES: Welcome back. Russia's economy continues to get squeezed by those Western nations with the sanctions. The latest move being a ban on all Russian aircraft in U.S. Airspace. The Moscow stock exchange won't be open on Wednesday either. A move that comes as multiple major companies like Apple, Boeing, ExxonMobil suspend business with the country. But the economic blows aren't exclusive to Russia. The Dow plunging nearly 600 points on Tuesday as the price of U.S. oil topped $102 a barrel for the first time since 2014. It's even higher at the moment.

Now, in the State of the Union Address, the U.S. President is reassuring Americans that despite fears of surging gasoline prices due to Russia's control of oil stores, things would be OK.

Anna Stewart joins me now from London with more. And, Anna, you know, Biden really tried to calm economic nerves in that speech. But, you know, what are nations doing to reduce Russian oil dependence to get around this?

ANNA STEWART, CNN REPORTER: Well, clearly, nothing right now. Looking at those eye -- oil prices, Neo Highs, you've got WTI crept up above $110 right now, around $100, $111. So, what could they do? Well, theoretically, Michael, and I mean the big oil producing nations of the world, OPEC, could try and flood the market with more oil. They could increase output. Bring those prices down. Also, reduce Russia's share of the overall oil market.

Now, I'll get to it later. But essentially, OPEC meets today and don't expect they'll make that sort of announcement. That was the theory though from the U.S. and other nations as part of the IEA's announcement yesterday that they would authorize releasing 60 million barrels on to the market from special reserves. It seems like a lot, it's really not. 60 million barrels would get through the world in about 16 hours. The world consumes 100 million barrels per day.

So, that's why we don't see prices full on that news. And with OPEC meeting today, yes, they could make that sort of announcement, but I really don't think they will. They are slowly, every month, increasing the output by just 400 barrels and barrels a day. Bringing oil back onto the market, that was taken off at the beginning of the pandemic. And actually, some of the producers are really struggling, actually, to meet the pledges they've already made. So, we don't expect that to happen.

Now, right now, energy from Russia is not sanctioned. Russia is still selling oil and gas around the world. So, if their sanctions were to target oil and gas, so, if there were to be any kind of destruction to gas and oil, you can see the prices we're seeing now skyrocket.

HOLMES: Yes, that's a bit of a worry. Now, tell us more about the private sector and its continued pullout from Russia.

STEWART: So interesting. We're seeing more businesses backing out. Overnight, we've had ExxonMobil, another big energy giant. They're stopping their latest Russian project. They're adding to names like Shell, BP, Equinor as well. Apple has said, they're going to stop selling products in Russia. That will add huge pressure, I think, with the public. And they're also going to start to limit the use of Apple Pay. So, on top of the financial sanctions and the pullout of Swift, that will add further woe to people in Russia.

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And Boeing, Michael, Boeing is suspending all operations in Russia. That's perhaps the most interesting use of all, because they're suspending parts, maintenance, and technical support for Russian airlines. Now, Russian airlines are already under a huge amount of pressure, here. Export bans are targeting the aerospace sector. And, of course, Russian airlines are banned from all sorts of countries around the world, right now. So, really turning the screws on the Russian economy.

HOLMES: All right. Anna, thanks so much. Anna Stewart there in London for us.

We're going to take a quick break from here in Ukraine. Now, when we come back, the U.S. President delivering that stark warning to Russia's elite. Our breaking news coverage of the invasion of Ukraine continues after the break.

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Welcome back, everyone. The U.S. President, Joe Biden, vowing on Tuesday that Vladimir Putin will pay a high price for Russia's invasion of this country. He used his first State of the Union Address to rally support for Ukraine and pledged new punishments for Moscow.

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BIDEN: Tonight, I say to the Russian oligarchs and the corrupt leaders who built billions of dollars off this violent regime, no more.

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The United States Department of Justice is assembling a dedicated task force to go after the crimes of the Russian oligarchs. We are joining with European allies to find and seize their yachts, their luxury apartments, their private jets. We're coming for you, you're ill-be- gotten gains.

(END VIDEO CLIP) HOLMES: But even as he spoke, Russia's military continued its advance on the cities of Ukraine. New video showing two massive explosions in Kharkiv, Ukraine's second largest city. This was on Tuesday night. So far, unclear what was in the area that might have been targeted.

And, we've heard moments ago, the Russians claiming full control of the City of Kherson. So far, the U.N. has recorded more than 135 the civilian deaths, but officials believe that actual toll is much higher than that number.

Meanwhile, the U.N. says nearly 700,000 refugees have now crossed Ukraine's borders into neighboring countries. Ukrainian tennis star, Elina Svitolina says, she will be donating all of her prize money from this U.S. Monterrey tournament to the Ukrainian army. Svitolina is the top seed in the Monterrey Open and won her first match, ironically, against a Russian player on Tuesday. Svitolina originally said that she would refuse to play against any Russian players. The 27-year-old said this match was a memorable one for her.

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ELINA SVITOLINA, UKRAINIAN TENNIS PLAYER: I was just focus from the beginning. For me, it was very important to be ready for anything, what comes my way. To be, all the time, moving my legs and serving well. I think I served really good today. And then generally now, I was just focused. I was on the mission for my country.

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HOLMES: Thanks for watching, spending part of your day with me. I'm Michael Holmes live in Lviv, Ukraine. Our breaking news coverage continues after the break.

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HOWARD: Protein is great for building muscle and it benefits your hair and nails, too. But while meats are a great source of protein, research suggests that replacing red meat with plant protein could help you live longer. Beans and lentils can be a start. They're rich in plant protein plus fiber, B vitamins, iron, and foliate. Most beans are also low in fat. Plant based sources of protein also include nuts and seeds. Try stocking up on almonds, pistachios, cashews, and walnuts. Whole grains like, oats, buckwheat, and brown rice, are also good sources of protein.

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