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Biden Warns Putin, Pushes Domestic Agenda in Speech; Biden Pivos to COVID Battle, Vows to Fight Inflation; Live Explosions Rattle Ukrainian City of Kharkiv; Refugees Flee Ukraine as Russian Attacks Intensify; U.S. Oil Prices Driven Up By Russian Invasion of Ukraine; Major Companies Suspend Business with Russia. Aired 4:30-5a ET

Aired March 02, 2022 - 04:30   ET

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

[04:30:00]

ISA SOARES, CNN ANCHOR: U.S. President Joe Biden's first State of the Union Address comes at a time of extraordinary global unease as well as dissatisfaction at home. He began with the focus on Ukraine warning Russia it would pay a price for its, quote, unprovoked and premeditated invasion. The president led lawmakers in a bipartisan standing ovation -- as you can hear there -- 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 fight 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. Have a listen.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: Now is the hour. Our moment of responsibility. Our test of resolve and conscience, of history itself is this moment our character of this generation is formed. Our purpose is found. Our future is forged. Well, I know this nation. We'll meet the test.

(END VIDEO CLIP)

SOARES: Let's get more on this. Thomas Gift joins us now for analysis on the address. He's director of the Center on U.S. Politics at the University College of London. Thomas, a very good morning to you. And as we've just heard there from the small clip, the president's focus was clearly framed around his biggest foreign policy crisis, and that is of course Ukraine. But he also addressed some key concerns in Kyiv. Do you think he hit the right notes? The right balance?

THOMAS GIFT, DIRECTOR ON U.S. POLITICS, UNIVERSITY COLLEGE, LONDON: Well, it's great to be with you, Isa. You know, Biden's main challenge was twofold. He of course needed to tout the White House's achievements but he also had to acknowledge the real problems that the U.S. is confronting without coming off as to pessimistic or too defensive. So, it's all about striking that right balance. And overall, I think he was successful. On the economy, you know, Biden emphasized strong GDP and employment

growth. But he also him the pain of understood inflation reaching a 40-year peak. On COVID he highlighted the pandemic relief bill and progress on immunization. But he also made clear that the country has a long way to go in reducing infections.

And on kind of his broader domestic policy agenda, he promoted the bipartisan infrastructure bill, that $1 trillion bill which has really been the hallmark of his time in office so far, but he also conceded the need to make inroads on other areas like climate change and universal pre-K and childcare. So, I think overall Biden struck the right note. You know, it's a tough time to give this address. I don't envy him. But he did about as well as could have been expected.

SOARES: Yes, I thought he was conciliatory as well as confrontational which is always a hard thing to do. Let's focus -- let's put domestic aside for second, Thomas. But on Ukraine, we heard I think it's fair to say a really cutting condemnation of President Putin saying his actions were unprovoked and premeditated. Do you think though he went far enough? Because this was a speech, of course, for many audiences here.

GIFT: Well, I think his words were quite strong. You know, Biden's comments on Ukraine were probably the most politically consequential of the evening. And according to recent polling a lot of Americans are skeptical. About 33 percent of U.S. citizens approve of Biden's handling of the conflict to date. So, Biden really needed to persuade skeptics that he is respectively managing the tensions and advancing America's interest in Eastern Europe.

But of course, he's also speaking to an international audience as well. So, I think Biden framed his remarks around familiar themes that you would expect. Ensuring that democracy prevails over authoritarianism and the imperative of partnering with Western allies on shared core policy goals. He did say that Russia really underestimated the extent of global unity in rebuking Putin's attack on Ukraine. I think he spoke really forcefully about how countries that violate national sovereignty will pay a price. And so, he didn't pull too many punches on Moscow. And it was probably the most unifying part of his address.

SOARES: Yes, I thought so, indeed, but unifying both sides of the aisle. Before you go, I want to ask you though, about the domestic troubles at home, in particular inflation, gas prices. Was the message on inflation here, Thomas, clearer?

[04:35:00]

GIFT: Well, inflation has been whip sawing throughout the U.S. economy for months. And most Americans do blame Biden for the problem. Earlier in his term Biden's team largely ignored warnings about how large infusions of federal spending could trigger these wage price spirals. And when inflation did spike the White House kind of shrugged it off as temporary.

Last night I think we saw Biden really convey more effectively that he grasped the enormity of the problem. At the same time, you know, they were kind a few specifics of his plan besides the standard Democratic fare, price controls on prescription drugs and housing which may just reflect the reality that there's no silver bullet and there's not a lot Biden can do about it.

You know, it is worth noting new reasons to be pessimistic on the inflation front, imposing sanctions on Ukraine will do anything to help curb rising price levels in the U.S. sort of globally. So, when it comes to its foreign policy for the middle class, that is significant -- Isa.

Thomas Gift, always appreciate your perspective. Thank you very much indeed.

GIFT: Thank you.

SOARES: And of course, we'll have much more ahead on the war in Ukraine next with Michael Holmes.

(COMMERCIAL BREAK)

MICHAEL HOLMES, CNN ANCHOR: Welcome back, everyone. I'm Michael Holmes in Lviv, Ukraine. U.S. President Joe Biden says the response to Russia's invasion of Ukraine shows how badly Vladimir Putin miscalculated. But that is not stopping Moscow from pressing on with its onslaught on multiple fronts.

Ukraine says it battle is raging right now for control of the southern port city of Kherson, that it's denying Moscow's claims that it has already been captured.

[04:40:00]

Meanwhile, fighting intensifying in Kharkiv, Ukraine's second largest city. This was the scene a short time ago. Large explosions at Kharkiv National University and the regional police department. Ukrainian officials say it was hit by a missile strike.

The UN's refugee agency says the exodus of people fleeing this country could become Europe's largest refugee crisis of the century. Nearly 680,000 people have already fled to neighboring countries including to Romania where Ukrainians are cuing for up to 20 hours trying to cross the border. Officials say this humanitarian crisis is only going to get worse.

Joining me now from the Romania/Ukraine border is Sabrina Preda. She is an anchor for CNN affiliate Antenna 3 network. Good to have you with us. Just give me a sense of what you are seeing on the ground there and what people are telling you as they cross over from Ukraine.

SABRINA PREDA, ANTENA 3 ANCHOR: Well, Michael, it's really hard to explain in words the situation here at the cross border. We've spoken with the people and you can see the images, so many people who are trying to get in a safe place. They are telling us that they are desperate. They are scared and the best word I think they are in shock. You can see in the images that there are so many trucks and cars, that

they are waiting to go by ferry in Romania. Also, my colleague Mihi will show you just in a second that they have an ambulance for anyone who needs support and also tents for those who need medical consultation too.

You can see the line in this moment, it's a line of ten kilometers and the people are waiting here even 24 hours to enter in the country. And I have for you the last updates on the number of the refugees who entered Romania. We speak now for more than 100,000 refugees that entered Romania through all the cross borders and more than half of them already went in other countries. So just maybe 15,000 remain in Romania.

HOLMES: I want to ask you, what kind of assistance does Romania have in place there? Are they able to meet the demand of so many people arriving all at once?

PREDA: Well, Michael, I'm happy that you ask me this because here the authorities from Romania did all their best to receive all these refugees and make them feel like home. They gave them medical support. They gave them accommodations and food, hot meals for everybody who needs. But I am not talking just about authorities here in Romania but also about ordinary people who opened their homes for these refugees. The business men who offered their hotels for free for these refugees.

And one last thing, Michael, I'm sure that all these people, and you're seeing the images, they have one single thought in this moment because they didn't left in Ukraine just their homes, they left in Ukraine their lives. But more than that, their families. Their dad, their uncles and their brothers and one day they hope to be reunited in Ukraine without war in safe Ukraine -- Michael.

HOLMES: All right. Antena 3 anchor, Sabrina Preda, thank you so much. Appreciate that update. A very important and developing aspect of what is happening in this country. I'm Michael Holmes here in Lviv in western Ukraine. There'll be much more ahead on the war in this country. Let's go back to Isa Soares in London for that -- Isa.

SOARES: Thanks very much, Michael. And still ahead right here on CNN. U.S. oil prices surge as countries prepare to release millions of emergency oil barrels to keep prices low. Will a promise from the U.S. president be enough though to calm consumer fears? We will discuss. That is next.

[04:45:00]

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: I know news about what's happening can seem alarming to all-Americans, but I want you to know, we're going to be OK. We're going to be OK. When the history of this era is written, Putin's war on Ukraine will have left Russia weaker and the rest of the world stronger. (END VIDEO CLIP)

SOARES: The U.S. president there trying to reassure Americans during the State of the Union Address that Russia's control of oil stores shouldn't be really a cause for concern. It comes as the Dow plunged nearly 600 points on Tuesday as the price of U.S. oil topped $102 a barrel for the first time since 2014. But U.S. gas prices have been slowly rising over the past year. Have a look at this.

According to AAA, the average price for one gallon of gasoline in the U.S. is nearly $1 more than the same time last year. Meantime, the list of companies pulling out of Russia grows larger by the day. ExxonMobil, Apple, Ford, General Motors and Boeing just to name a few.

CNN's Anna Stewart joins me now here in London to talk more about Russia's economic turmoil. And Anna, on oil, we've seen new records yet again despite the fact that the IEA have messaged don't worry, there won't be a short fall. But it doesn't seem to be reflected on the markets.

ANNA STEWART, CNN REPORTER: Certainly isn't. So yesterday there was this announcement that they could add 6 million barrels of oil on the market and strategic reserves -- sorry 60. Sounds like a lot and world will get through that in 16 hours. The world can use 100 million barrels a day.

Now there's a lot of focus on OPEC as well. The big oil producers led by Saudi Arabia could they flood the market with more oil? Because oil would bring that price down. They're not going to. They're going to keep up, I think, with the steady, steady increase. 400,000 barrels each month steadily increasing it to where it was before the pandemic. But those prices are high and it is spiking pretty much in every bit of volatile news we get out of Russia which is multiple times a day.

You can see there Brent was up about 113 but WTI was up about 111 today. So, a multi-year high.

SOARES: For both of those despite the fact that, you know, we're seeing more barrels of oil being flooded into the market. Let's talk about corporates because the impact here could be huge in terms of the long term for Russians and potentially for Putin himself.

STEWART: Yes. Every day we see more businesses backing out of Russia. The list just keeps on growing. Now some of them are a result of sanctions. They have to. Others are taking a stand. But the overall effect is to put, well, Russia under a bit of a squeeze. Consumers are under pressure and that could build pressure on President Putin.

So, in the last 24 hours Apple they're going to stop selling products in Russia.

[04:50:00]

They'll also going stop limit Apple Pay, to Mastercard, Visa, the sort of effects of SWIFT being disconnected. It's going to really hurt consumers. Boeing suspending all operations in the country as well and ExxonMobil, as you said, from the latest Russian project. Now Russia is trying to stop that. They're introducing capital controls. They want to stop any outflows from Russia and their stock market is still closed.

SOARES: Anna Stewart, appreciate it. With the intention of course to try to hobble the Russian economy. We'll have much more after a very short break. You are watching CNN.

(COMMERCIAL BREAK)

SOARES: Welcome back, everyone. The Kremlin says a Russian delegation will be in place today for a new round of talks with Ukraine. But it hasn't given any additional details about the location and indeed, the format of those talks, negotiations near the Belarusian/Ukrainian border, if you remember, ended on Monday with little impact as Russia pushed ahead, and pushed further with the attacks across Ukraine and into Kyiv. We'll stay on top of that story for you.

Ukrainian tennis star Elina Svitolina says she will donate all of her prize money from this year's Monterrey tournament to the Ukraine army.

[04:55:00]

Svitolina is the top seed in the Monterrey Open and won her first match ironically against a Russian player on Tuesday. Svitolina originally said she will refuse to play against any Russian players. The 27-year-old said this match was a memorable one for her. Have a listen.

(BEGIN VIDEO CLIP)

ELINA SVITOLINA, UKRAINIAN TENNIS PLAYER: I was just focused 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 in general I was focused. I was on a mission for my country.

(END VIDEO CLIP)

SOARES: Incredible moment there. Well, people around the world are sending prayers and holding vigils in support of Ukraine. This peace vigil in Marseilles, France is among the latest. Worshipers gathered at a church to light candles. The Archbishop of Marseilles offered a prayer for the Ukrainian people to be protected and for the suffering in the region to end.

And we want to leave you with some images that went viral for all the right reasons. Joe Biden hugging the Ukrainian ambassador at the State of the Union. And if you look closely, you can see the first lady showing her support in a subtle way.

A sun flower to honor Ukraine was embroidered onto the cuff of her blue silk dress. Blue and yellow of course the colors of the Ukrainian flag, a symbol of solidarity was a last-minute addition.

And that does it for us. Thanks very much for joining us. I'm Isa Soares in London. Our breaking news coverage of the Russian invasion of Ukraine continues on "NEW DAY" with Brianna Keilar and John Berman. Do stay right here with CNN.

[05:00:00]