Return to Transcripts main page
CNN Newsroom
One Killed As Debris From Downed Missile Hits Kyiv Building.; Ukraine: Bomb Hits Mariupol Theater Serving As Shelter; Witnesses: 10 Killed In Chernihiv Bread Line Shelling; Zelenskyy Appeals To U.S. Congress For More Help; Biden Announces Additional $800 Million In Security Aid; Russian Warships Pass Through Japanese Waters; Putin Condemns Russian Protesters As Traitors; Humanitarian Needs Rising Amid Escalating Russian Attacks; Attacks On Civilians Intensify In Kyiv Across Ukraine; Ukraine's Methods For Stalling Russia's Advance; Ukrainian Refugees Worry About Loved Ones Back Home. Aired 2-3a ET
Aired March 17, 2022 - 02:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[02:00:20]
ANNOUNCER: This is CNN Breaking News.
HALA GORANI, CNN INTERNATIONAL ANCHOR: Hello, and welcome to our viewers around the world, and in the United States. This hour, I'm Hala Gorani coming to you live from Lviv in Ukraine.
And we begin this hour with breaking news. At least one person is dead, and three others wounded after debris from a downed missile hit a residential building in Kyiv. Authorities say a fire broke out in the 16-story building, but it was put out pretty quickly.
The State Emergency Service reports 30 people have been evacuated from the site and rescue operations are ongoing.
Now, meanwhile, in the southern coastal city of Mariupol, what could be one of the most brutal attacks since Russia invaded Ukraine late-- last month. Local officials say Russian forces bombed a theater in the heart of the city where hundreds of people were taking shelter. It is still not clear how many were killed or wounded.
But here's part of what makes this attack so insidious. Satellite images show the Russian word for children spelled out clearly in large letters on two sides of the building that was hit. Ukraine blames Russia for another attack on civilians in the Northern City of Chernihiv. Witnesses say 10 people queuing for bread were killed by shelling. Russia denies that its forces were responsible.
And apartment buildings have been a popular target for Russian strikes in the Capital Kyiv. Authority say two people were hurt in this particular strike on a 12-story building, which sparked a major fire.
The President, Volodymyr Zelenskyy says at least a 103 children have now been killed in Ukraine since Russia invaded. The government says that Russian warships have struck four villages around Odessa that is Ukraine's third largest city along the southern coast. And President Zelenskyy devoted-- delivered as you see an urgent plea
for more help from the U.S. in a virtual address to Congress on Wednesday. He urged President Joe Biden to be a world leader, a leader he says for peace, and he reiterated his request for a no-fly zone, saying that Russia has turned Ukrainian skies into a source of death.
Mr. Zelenskyy compare this moment in history to turning points in the past in the United States where urgent action was required.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, PRESIDENT OF UKRAINE (through translator): Remember Pearl Harbor? Terrible morning of December 7th, 1941 when your skies was blocked from the planes attacking you. Just to remember it.
Remember September the 11th? A terrible day in 2001 when evil tried to turn your cities, independent territories into battlefields, when innocent people were attacked, attacked from air.
Yes, just like no one else expected it. You cannot stop it. Our country experienced the same. Every day right now.
(END VIDEO CLIP)
GORANI: Well, after Mr. Zelenskyy's speech, President Biden announced an additional $800 million in security assistance to Ukraine. It will include anti-aircraft systems, drones, grenade launchers, guns, and ammunition. Mr. Biden warned this work could be a long and difficult battle, but emphasize that Americans will be steadfast in their support.
Well, at a separate event, President Biden made his harshest condemnation yet of Vladimir Putin, a remark the Kremlin called "Unforgiveable." Listen.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Is Putin a war criminal, sir? Are you ready to call [Putin] a war criminal?
JOE BIDEN, PRESIDENT OF UNITED STATES OF AMERICA: Oh, I think he is a war criminal.
UNIDENTIFIED FEMALE: Do you think--
(END VIDEO CLIP)
GORANI: "I think he is war criminal", says Joe Biden. Russian troops in Ukraine maybe getting some badly needed help from back home. Japan has released new images of Russian warships passing through its waters, possibly carrying troops and combat vehicles.
And meanwhile, Russian President, Vladimir Putin is lashing out at Western countries which he claims are trying to cancel Russia. Still the Kremlin says he is open to talks with U.S. President Joe Biden despite Western sanctions.
And Mr. Putin also condemned Russians who are protesting against his special military operation as he calls it, calling them scum and traitors.
(BEGIN VIDEO CLIP)
VLADIMIR PUTIN, PRESIDENT OF RUSSIA (through translator): But any people, the Russian people especially are able to distinguish true patriots from bastards and traitors, and will spit them out like a gnat that accidentally flew into their mouths.
[02:05:28]
PUTIN (through translator): I am certain that this necessary and natural self-cleaning of our society will only strengthen our country, our solidarity, togetherness, and our readiness to answer any calls to action.
(END VIDEO CLIP)
GORANI: We are still waiting for word on the fate of hundreds of people who were taking shelter in that theater in Mariupol when it was hit by a Russian bomb. CNN's Nick Paton Walsh has our report.
NICK PATON WALSH, CNN INTERNATIONAL SECURITY EDITOR: The flicker of flame here where Russia's barbarism peaked and an airstrike hit a bomb shelter hiding hundreds beneath a theater, said local officials.
The damage so complete, the entrance was reduced to rubble. This satellite image from two days earlier, showing the building standing with children written large outside in case you're still thinking nobody knew who was here.
Videos had been circulating for days of the hell inside. How over a week of siege and shelling had forced those still living into a space so tight and dark. It must have felt like a tomb.
UNIDENTIFIED MALE (through translator): Here, he says, it's where we give out food to children, women, and elderly first.
WALSH: This is the converted cloakroom for theater. If this looks like how you imagined the end of the world, for these children packed in, that may have been the case when the bombs struck.
Russia claimed Ukrainian radicals' calls to blast. In this room, 15 people, the narrator says. Little comfort any parent can give by the light this will be over soon. And below this store there yet more, an entire city forced underground little aid allowed in and few allowed hours.
People hear us, here are children he says, his appeal is for food help. Perhaps unaware it may have led Russian bombs straight to them.
The swimming pool was also hit, a place where this narrator says a pregnant woman was trapped under the rubble. And were only expectant mothers and those with under threes heard. The Kremlin wants to break or flatten this port. But its defenders still exact a cost. Still keep them out.
This drone video shows the moment Ukrainian fighters head to Russian tank. The shots come again, and again, removing one of the tanks tracks. The crew relates to seeing hit as they try to flee. No room for mercy in a city that has little space left for life itself. Nick Paton Walsh, CNN, Odessa, Ukraine.
GORANI: Well, meantime Ukrainians continue to flee this horrendous war, more than 3 million have now left the country so far according to the United Nations.
And joining me from Vinnytsia, Ukraine is Amin Awad, the UN Crisis Coordinator for Ukraine. Thanks for joining us.
Talk to us a little bit about what is your assessment now of the humanitarian situation in this country? And would you support the notion of the idea of some sort of no-fly zone over a humanitarian corridor just to make sure that people are not indiscriminately targeted in civilian areas?
AMIN AWAD, UN CRISIS COORDINATOR, UKRAINE: But first and foremost, the humanitarian situation today in Ukraine is dire. The evidence is that we have over 5 million people on the move, 3 million inside, two plots outside almost 3 million.
This is the fastest moving crisis I've ever seen in recent history. There are people trapped in some towns and cities that in need of humanitarian assistance, and they're in need of support. We are calling for access to people trapped in Mariupol and other places.
We're also asking for humanitarian convoys to go in, we're asking for civilians to be evacuated. People are in need of important life support. We need to really throw a line of support to those people and therefore we're asking the parties to give us access, and we're also asking--
GORANI: Who--
AWAD: --for a humanitarian pause or a total ceasefire so that humanitarian will--
GORANI: Who are you--
AWAD: (INAUDIBLE)
[02:10:10]
GORANI: Who are you talking to right now? Are you talking with the Russians? Because the Russians are the ones shelling civilians right now.
AWAD: We're talking to the Russians. We established also a de- confliction with the system with them. We're talking to the Ukrainian. We are wanting this communication, to be standing communication, so that we can reach solutions.
AWAD: Yes, from Russia in particular, that we need access to those people. We need people out. We need more people out of Mariupol for example. We need to have access to those people.
GORANI: Yes.
AWAD: People have to be evacuated from the city. They have to be, but it is not a normal situation.
GORANI: Yes. Mr. Awad, I-- we-- I think we all know what needs to happen. The question is, how does it happen? Because when you speak to Russians and it's good to hear you have an open line of communication with them, they just bombed a theater in Mariupol with hundreds of people seeking refuge there including children.
And from the sky, you could clearly read the Russian word for children in front and behind that building. How do you even start to negotiate with a military force that is committing these types of acts? Where do you begin?
AWAD: Well, this war is not a secret. I think the whole world is watching this war on the TV screens, they're hearing in the radio. People on the ground are seeing that we have been communicating to the Russian Federation. We have been communicating to Ukrainian authorities. We have kept continuous communication asking for access, asking for humanitarian evacuation, asking for the respect of the International Humanitarian Police-- International Humanitarian Law.
We are not getting response for the last 10 days. There was a pause where people came out yesterday. But that's not enough, that city has more than 300 to 400,000 people. And people really have to be relieved of this hellish circumstance in their living.
GORANI: OK.
AWAD: It's rather unacceptable.
GORANI: Just so I understand, you-- just so I understand, you are asking for access, you are asking for evacuations. But you said in the last 10 days, you've received no response.
Are you saying that you are making these requests but that they are not-- they have not responded the Russian side in 10 days? Just I need to make clear-- I need to be sure that I understand what you're saying.
AWAD: There were couple-- working in the communication to Mariupol in particular, there were a couple of pauses where people came out. But that's not enough. We wanted a total holds, a total ceasefire, that people should come out and humanitarian assistance, international organizations, and other civil administration to go and to rescue those people and attend to their needs.
And to give people of line exodus to exit Mariupol--
GORANI: OK.
AWAD: -- for those who need to leave. This are our demands, they are straightforward.
GORANI: But you said you haven't received a response in 10 days. Or did I mishear you? You've been asking the Russian side for 10 days.
AWAD: We've received-- yes.
GORANI: Are you-- are they talking-- are they at least replying to you or--
AWAD: We haven't-- there is a back and forth information. But I think the bottom line here is to really adhere to International Humanitarian principles and respond to our request to have access.
The request is straightforward, but I get an answer or not. The world is hearing this request. I need access to Mariupol. I need a ceasefire or humanitarian pause and evacuate the people from Mariupol. I have to deliver much needed medicine and supplies to Mariupol.
GORANI: Right. When you make that request, at what level do you-- are you able to communicate with the Russian side? Are you going through Moscow? Are you talking with combatants on the ground? How does that work operationally from your perspective?
AWAD: I will not go into details as we are discussing humanitarian situation and security of people. I don't go into these details. We have lines of communication at the highest level, and we're reassuring those.
So I will not put our communication on the table because that will go beyond-- will go. Again, it's our strategy, and our communication really between the parties in situation like this before. We don't communicate openly through the media.
We communicate with them, but this is the request I have laid on the table are the "asks" that we have and they're still on the table.
GORANI: And have they said either way, yes or no to your request?
AWAD: I am still waiting to know, but I need to know-- I don't need a yes, they dint say no. I think the physical opening of the gates of that city so that people are out from this hellish situation.
[02:15:15]
GORANI: Amin Awad, thank you very much. And best of luck to your teams on the ground. We are watching this story develop as we continue to report what's going on in Mariupol. Really appreciate it. Amid Awad in Vinnytsia, Ukraine.
The tide is turning that is what a top Ukrainian government official says. But is it true? We'll take a look after the break. Stay with us. We'll be right back.
(COMMERCIAL BREAK)
GORANI: Well, the counter strike in Ukraine has begun those are the words of a senior adviser to Ukrainian President Volodymyr Zelenskyy.
And these new satellite images appear to back some of that up. They show the burned out aftermath of a second attack on Russian helicopters at the Kherson airport. In a statement three weeks into the conflict, the adviser says the counter strike is quote, "Drastically changing the dispositions of the size."
And in other developments, President Zelenskyy has made repeated requests for a no-fly zone in fighter jets. This isn't new. But he most recently made them in Wednesday's address to the U.S. Congress.
[02:20:13]
GORANI: The U.S. and NATO are concerned though that either action would risk a wider war with nuclear armed Russia. But as Fred Pleitgen now reports Ukraine has been able to hold Russia back in other ways.
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: This is how Ukraine's army is halting Russia's advance using anti-aircraft weapons like the U.S. made Stinger against low flying helicopters.
Now, answering Ukrainian President, Volodymyr Zelenskyy's plea, the U.S. says longer range anti-aircraft missiles are arriving in Ukraine, including the powerful S-300.
(BEGIN VIDEO CLIP)
ZELENSKYY (through translator): You know what kind of defense systems we need, S-300s and other similar systems. You know how much depends on the battlefield on Russia's ability to use aircraft.
(END VIDEO CLIP)
PLEITGEN: After Zelenskyy's impassioned speech to Congress, President Biden announced a massive new security assistance package worth $800 million, including drones, anti-tank weapons, and 20 million rounds of ammunition.
(BEGIN VIDEO CLIP)
BIDEN: It includes 800 anti-aircraft systems to make sure the Ukrainian military can continue to stop the planes and helicopters that have been attacking their people, and to defend the Ukrainian airspace.
(END VIDEO CLIP)
PLEITGEN: Despite being drastically outgunned, the Ukraine's forces have been putting up a tough fight. The country's ground troops led by Colonel General, Oleksandr Syrskyi, a veteran of Ukraine's defense of the Donbas region.
Meanwhile, the Chief Commander of the armed forces General Valerii Zaluzhnyi, who's widely credited with reforming Ukraine's military vows to fight the Russians to the last drop of blood.
(BEGIN VIDEO CLIP)
VALERII ZALUZHNYI, CHIEF COMMANDER, UKRAINE (through translator): I don't have any illusions and don't wait for a gift from God, he says. I fought and have been preparing my armed forces.
(END VIDEO CLIP)
PLEITGEN: The weapons supplied by the U.S. and its allies are giving them a fighting chance. Ukrainian units blowing up Russian tanks with shoulder-fired missiles like the Javelin supplied by the U.S. or NLAWs, a similar anti-tank weapon made in Britain.
(BEGIN VIDEO CLIP)
GEN. WESLEY CLARK (RET), CNN MILITARY ANALYST: We're at a crucial point in the battle here where Ukraine is tipping the balance against Russia. Russia is clearly in trouble.
(END VIDEO CLIP)
PLEITGEN: Ukrainian troops have fought tooth and nail with the Russian tanks on the ground despite being massively outgunned by Vladimir Putin's army. While the U.S. and NATO still reject the idea of a no- fly zone, the Biden Administration has made clear it will continue to armed Kyiv's forces to help as they bog down the Russian military, and inflict massive casualties. Fred Pleitgen, CNN, Lviv, Ukraine.
GORANI: The latest on the fighting in Ukraine is coming up after the break. I'll be bringing you that including an attack on a theater where hundreds of Ukrainian women, and children, and the elderly have taken shelter from the war.
Plus, millions of Ukrainians have fled across borders to get away from fighting at home. But as they find safety for themselves, they continue to worry about the loved ones who stayed behind.
(COMMERCIAL BREAK)
[02:28:13]
GORANI: Welcome back. I'm Hala Gorani live in Lviv, Ukraine.
A U.S. Defense Official says that the Russian offensive in Ukraine is quote, "generally stalled", but that has not slowed Russia's relentless shelling of Ukraine's civilian population.
Take a look at some of the video here. Ukrainian authorities say pieces of a downed Russian missile hit a residential high-rise in Kyiv killing at least one person.
And earlier a theater being used as a shelter in the coastal city of Mariupol was reduced to rubble by Russian shelling, a satellite image taken before the strike. And this is-- it would be very hard for anyone to argue that didn't know who was sheltering there because there's a-- the word children in Russian painted outside very clearly at the front and in the back of that building.
Hundreds of people were believed to be inside at the time. But the number of casualties is not yet known. We'll continue to work on that for you.
And in the Capital Kyiv, two people were wounded when Russian shells struck a 12-story apartment building. Kyiv's Mayor had harsh words for the Russian president. Listen.
(BEGIN VIDEO CLIP)
MAYOR VITALI KLITSCHKO, KYIV, UKRAINE: They destroyed-- they killed children, woman, civilians. There-- for what reason? The good question, good question to Putin, which reason is that to kill civilian because Ukraine decide to be democratic country?
UNIDENTIFIED MALE: He says he's only target-- Putin says he's only targeting military targets.
KLITSCHKO: (BLEEP) Sorry.
(END VIDEO CLIP)
GORANI: All right. Call that BS. Ukraine's President, Zelenskyy received a standing ovation from the U.S. Congress after delivering an impassioned plea for greater military assistance. And after that President Biden said the U.S. would send another $800 million in weapons and supplies.
[02:30:00]
Well, as the fighting rages on at home, more and more Ukrainians are finding refuge abroad, more than three million of them have done that so far, including over 460,000 who fled to Romania. They say, Romanians have welcomed them warmly but as Miguel Marquez reports, what is next is still very much an open question for them.
(BEGIN VIDEO CLIP)
MIGUEL MARQUEZ, CNN NATIONAL CORRESPONDENT (voiceover): A stream of Ukrainian refugees, old and young, even a dog named, Oprah. Some looking for a hot meal. Others, a place to stay for a night or two.
MARQUEZ (on camera): Who are we with here?
MARQUEZ (voiceover): Svetlana Karpova, her husband and two kids, David and Maxim, 11 and two, David has autism.
MARQUEZ (on camera): How do you explain what's happening?
MARQUEZ (voiceover): I explained that there is a war. But they don't really understand, she says. It's important for David -- for both us, to be with him.
The family from Odes a has now found a house here and plan to stay. Their lives, up in the air.
I hope there will be no people like Putin, anymore, she says. Then adds, in English.
SVETLANA KARPOVA, REFUGEE FROM ODESA, UKRAINE: Putin to here, he Hitler -- to Hitler.
MARQUEZ (voiceover): The City of Brasov in Central Romania's Transylvania Region, hosting up to 250 Ukrainian refugees.
FLAVIA BOGHIU, BRASOV VICE MAYOR: Well, you can see on them, they are being more and more affected about what's going on. We've had stories about with people trying to contact their beloved ones for two days in a row and seeing them walk around, being worried about what's going on back home.
MARQUEZ (voiceover): A business center two weeks ago, now, an oasis of support. A place to sleep, eat, get a change of clothes. There's even a play area and childcare, all free of charge.
BOGHIU Next week, we're having a kindergarten group starting in Ukrainian -- with a Ukrainian volunteer.
MARQUEZ (voiceover): Natalia Vatamantin Torenco (ph) is from Mykolaiv, a city under relentless Russian artillery and rocket attacks.
Putin united Ukraine with this war, she says. Ukraine is now united in its tragedy and pain.
Natalia lives in Brasov but her sister, cousins, half-brothers, and friends are all back home in Ukraine.
Every morning when there's an attack, she says, we check in on our shared chat to see if everyone is OK.
Anja Polishok (ph) arrived here on March 8th with her daughter and their friends. Her husband, who was a driver, is now fighting on behalf of their country.
We're all worried, especially my daughter, she says. But there is no other choice and I'm proud he is defending our country.
Ukrainians united. Those who come here, leave messages, like, thank you for the care. All people were nice to us and we never felt hungry, cold, or lonely.
Miguel Marquez, CNN, Brasov, Romania.
(END VIDEO CLIP)
GORANI: And, if you'd like to know and to find out how to help people in Ukraine who may be in need of shelter, food and water, you can go to our page cnn.com/impact. And there's a list of organizations helping on the ground.
I have more from Lviv, Ukraine at the top of the hour but first, let's go back to Rosemary Church in Atlanta.
ROSEMARY CHURCH, CNN INTERNATIONAL NEWS ANCHOR: Thanks so much, Hala. We'll see you very soon.
And still to come, many Russians against the war in Ukraine are fleeing their country. An economists say, a brain drain could be another long-lasting hit to Russia's economy. We're back with that and more in just a moment.
(COMMERCIAL BREAK)
[02:35:00]
Welcome back, everyone. While every day, thousands of Ukrainians are fleeing their homeland because of the Russian invasion. But in Russia, a different kind of exodus is taking place. Russians opposed to the war are fleeing President Vladimir Putin's oppressive regime. An estimated 200,000 Russians have left the country since the start of the conflict, according to one Russian economist. Analysts see this as the start of a brain drain for Russia, one that could further doom the Russian economy. In neighboring Georgia, the president told CNN, about 25,000 Russians have arrived in her country.
(BEGIN VIDEO CLIP)
SALOME ZOURABICHVILI, GEORGIAN PRESIDENT: The Russians that are coming here are not the Russian -- the pro-Putin Russians, I would say. They are those that are trying to get out of the country to wait and see what and how it will happen.
CHURCH: Elina Ribakova, Deputy Chief Economist of the Institute of International Finance joins me now from Latvia to discuss this. Thank you so much for being with us.
ELINA RIBAKOVA, DEPUTY CHIEF ECONOMIST, INSTITUTE OF INTL. FINANCE: Thank you.
CHURCH: So, not only is Russia being hit with severe economic sanctions, but also this brain drain with tens of thousands of intellectuals fleeing the country because they object to President Putin's war on Ukraine or worry about the impact these sanctions will have on Russia's future. And many fear the Kremlin's crackdown on dissent. So, what impact will the departure of these professionals likely have on the country do you think?
RIBAKOVA: Well, we first need to put these numbers in perspective. This is unprecedented migration away from Russia. Last year, we had maybe half a million reported official statistics of people leaving.
[02:40:00]
So, 300,000 just in the matter of weeks, is an extremely large number. We had a, sort of, golden period of 2,000, when people were almost not leaving not all, according to official statistics. And then ever since Putin's return to presidency and then war on Ukraine the first time around in 2014, we've seen a rapid spike even in the reported numbers. So, if you look also at the receiving end and you just had an episode on that, this number's potentially underestimated. It may have doubled or even five times the number of the official people that are reported to be leaving.
In terms of impact on Russia, this will be devastating. Because a lot of these people are younger people. More than -- almost 50 percent of the younger people that are leaving, there's a highly qualified people. And many of them stated the reasons as lack of economic opportunity, better life for their children, but also risk of political repression domestically in Russia. So, this is the entrepreneurial highly educated class that is afraid and fleeing the country.
CHURCH: So, how long, do you think, it will take for Russia to recover from both the departure of these educated citizens and, of course, the economic sanctions?
RIBAKOVA: Well, I think it will take a very long time. It's almost hard to forecast because it didn't happen overnight. The pick-up happened already was the return of President Putin back to presidency after the 2011, 2012 crackdown on protest. And this is just an acceleration of the trend that has been going on for years. So, we -- we're not even seeing the peak of it. It is too early to even talk about the recovery time.
CHURCH: So, once this war in Ukraine ends and the world gets to see the full extent of the destruction, of course, the real death toll caused by the moral and ethical bankruptcy of Vladimir Putin, what will Russia's future look like as it deals with the consequences of economic sanctions and brain drain?
RIBAKOVA: If you look at the service, people are -- have been planning to leave before the war to -- on Ukraine. And I think this has accelerated their decision to leave. So, we will continue, even if the war can be stopped sometime soon and Ukraine returns back to normalcy, in Russia, that time will not come for a very long time. We will continue -- people trying to leave the country, as you have noticed. A lot of flights are fully booked up to leave Russia. And people are crossing even on foot, just with the suitcase, leaving everything behind.
So far, Russia, together with the capital control stocks of seize or foreign companies, assets, they're going back to, sort of, a financial economic authority in the style of potentially Soviet Union. And as we know, Soviet Union was not a particularly productive world and happy country to live in.
CHURCH: Yes. As you mentioned, I mean, more Russians are leaving, still leaving, and will continue to try to get out of the country. Although, it is difficult at this juncture. But, once all the Russians, who want to get out have departed, what happens to those left behind? How isolated will they become both intellectually and economically? And is this the vision Putin had for his country?
RIBAKOVA: Well, President Putin recently commented that Soviet Union was under sanctions and achieved great success. So, apparently, that is the vision of success that he has for the country. Locally, there will likely be shortages, particularly, in the more entrepreneurial sectors, professional sectors, I.T., and also potentially industrial sectors where people continue to flee. It is hard to say what will be potential growth of Russia. In the Soviet Union, it was almost negative, right? So, you'll likely to go back to the sort of stalling growth, lack of rural convertibility, lack of free markets. And this seems to be like a dead end for Russia at the moment.
CHURCH: Elina Ribakova, thank you so much for talking with us and your analysis, of course. We appreciate it.
RIBAKOVA: Thank you.
CHURCH: Well, it wasn't much of a surprise, of course, but the U.S. Federal Reserve has raised interest rates for the first time in years. We will look at how the rest of the world is reacting and whether this is a sign of things to come. And, a stark warning about an oil supply crisis from the International Energy Agency. We'll take a look at that, too. Stay with us.
(COMMERCIAL BREAK)
[02:45:00]
Welcome back, everyone. Well, the U.S. Federal Reserve is hoping to get a handle on inflation announcing Wednesday, interest rates will be raised a quarter of a percentage point, the first-rate hike since December 2018. As many as six more increases are expected this year. Fed chair, Jerome Powell, has been hinting at these hikes for months now as prices on everything from gas to groceries keep going up. Well, Powell adds the uncertainty of the war in Ukraine is, of course, making things worse. Take a listen.
(BEGIN VIDEO CLIP)
JEROME POWELL, CHAIRMAN, U.S. FEDERAL RESERVES: The implication of Russia's invasion of Ukraine for the U.S. economy are highly uncertain. In addition to the direct effects from higher global oil and commodity prices, the invasion and related events may restrain economic activity abroad and further disrupts supply chains.
(END VIDEO CLIP)
CHURCH: Now, Kristie Lu Stout joins us now from Hong Kong with a look at how the Asia markets are reacting. Good to see you, Kristie. So, stock markets in the U.S. rallied on the news. So, what are you seeing in Asia?
KRISTIE LU STOUT, CNN CORRESPONDENT: Well, we're seeing this new era of, you know, turning interest rates that are being raised by the Fed. Asian markets, they are responding in kind, as expected. On Wednesday, they Fed hiked interest rates by a quarter of one percentage to tame inflation, seeing its highest level since the 1980s.
[02:50:00] And also, critically, signal a series of aggressive moves ahead, more rate hikes ahead. And this is how Asian shares are responding. We'll bring up the data for you and you will see some strong gains across the board. Share has been rallying this day. The Japanese Nikkei up about three-and-a-half percent. Australia's main index up for one percent. Seoul Kospi gaining over one-and-a-half percent. The Shanghai Composite gaining 1.5. Four percent here in Hong Kong. Strong gains here about five -- almost five-and-a-half percent.
I should add that on Wednesday, Chinese shares had their best day in years after Liu He (ph), the vice chairman, stepped forward and vowed to keep the market stable and also to boost economic growth as well. You know, previously, earlier on the week, there was a big sell up in Chinese stocks due to concerns over the ongoing COVID-19 outbreak. And China believed it to be the worst in so far since Wuhan in early 2020. And also, it concerns about tension between the U.S. and China over Russia and the conflict in Ukraine.
Now, from Asia, we continue to watch U.S. features. We have that data for you as well and we'll bring it up and you could see this. On Wednesday, we know that U.S. stock rallied amid volatility. Right now, we are looking at green arrows. Dow Futures up 0.03 percent. Nasdaq Futures gaining two tenths of one percent. S&P 500 barely nudging up about 0.05 percent.
Now, analysts have been saying that the impact of the invasion of the conflict and related sanctions on the global economy and its growth are still uncertain at this moment. So, they're urging investors to be cautious, but also, to stay balanced. Take a listen to this.
(BEGIN VIDEO CLIP)
KERRY CRAIG, GLOBAL MARKET STRATEGIST, JP MORGAN: We would argue that the hardest decision right now is to do very little and actually think more around about being balanced in portfolios. So, it would be a case of being very patient when it comes to being an investor. And just holding firm when it comes to, sort of, a more neutral stance in portfolios rather than moving out of risk ethics completely given that, you know, there is not a clarity around exactly what might happen in the coming weeks or months.
(END VIDEO CLIP)
STOUT: You know, throughout the conflict so far, Rosemary, prices of energy, commodity prices like wheat, which is a key export from Russia and Ukraine, they have been soaring. And there are concerns that this will dampen global economic growth especially if consumers say, prices are too high, we are not going to spend. Back to you.
CHURCH: Kristie Lu Stout, joining us live from Hong Kong, many thanks.
Russia has avoided going into default for now and is making good on interest payments but with due Wednesday. Russia paid $117 million to investors from its foreign reserves which have been frozen by the United States. A treasury spokesman says, the payment will be allowed to go through.
Meantime, the International Energy Agency says, an oil supply shock could be coming. The agency says, Russia may be forced to limit its output by 30 percent, as demand in Russia slumps and major oil companies, trading houses and shipping companies reject its exports.
Eleni Giokos is in Dubai with the latest, she joins us now live. Good to see you, Eleni. So, let's talk about this. Oil supply shock that's coming. And the UK's Boris Johnson, in the Gulf looking to secure oil supplies.
ELENI GIOKOS, CNN CORRESPONDENT: Absolutely. Look, the warning from the International Energy Agency of an oil supply shock is absolutely going to spook the markets, it's going to spook investors. And it's going to be reflected in what oil price will be doing going forward. But you've got to look at supply, demand dynamics.
Now, British Prime Minister, Boris Johnson, in town meeting with the Crowned Prince of Abu Dhabi and also the Crowned Prince of Saudi Arabia, all in a bit to try and increase oil supply from these two countries. These are the only two countries, the UAE and Saudi Arabia that have excess capacity to try and plug some of the hole that is going to be created by the removal of Russian oil and gas out of the market.
Now, there's been no public pledged to do so and it's far more complicated than that. We've been hearing from many people that the talks are not going in the direction that Boris Johnson wants them to go. And this is because the sovereign interests of the UAE and Saudi Arabia are going to trump any international concern in terms of oil and gas supply. And also, they are trying to ensure that they have a fine balance in terms of political affiliations.
They've called for a de-escalation of the war and a stop to the war in Ukraine. But when it comes to trying to keep Russia in the OPEC+ family, that is important because that means stability in oil and gas markets down the line. You've got to remember, Russia, is one of the top free oil and gas producers in the world. Right now, the U.S. has sanctions against Russia that is having an impact. And as you say, some trading houses, some countries are doing self-sanctions on Russian oil. So, we don't know what impact that is going to have. And there's no sanctions coming through from Europe as yet. So, OPEC countries are trying to figure out what the real supply demand dynamics are going to be.
[02:55:00]
And if we look at that oil price, Rosemary, it's not that clean cut. There's been huge volatility. And the experts are telling us that most of it is actually got to do with speculation. And not because there's a real deficit in the market right now. You were talking about Jerome Powell increasing interest rates, we're already seeing the oil price have such a huge impact on inflation. And the big question is, what these two countries are going to do in terms of oil production down the line. And that with it, they'll be able to alleviate some of the pressure that we've seen in the market. CHURCH: Watching that very closely. Eleni Giokos, joining us live from Dubai, many thanks. And thank you for being with us this hour. I'm Rosemary Church. Our breaking news coverage continues after a short break. Stay with us.
(COMMERCIAL BREAK)
JACQUELINE HOWARD, CNN HEALTH REPORTER: There is a lot to chili peppers than just their fiery hot flavor. Chili peppers have more vitamin C than oranges, and they're a good source of vitamin B6. They also contain a compound called Capsaicin which gives chili pepper it's spicy kick. And studies suggest that capsaicin can provide weight loss by curbing your appetite and boosting your metabolism. Capsaicin has also been associated with a lower risk of heart disease and cancer.
Acidic ingredients can help neutralize the spice. And to your dish some lemon or lime juice, chopped tomatoes, or a dash of wine. And dairy products are also a great way to cool down chili pepper. For a creamier dish, add yogurt or sour cream. And harder cheeses that are grated or shredded can add texture. Perfect for a bowl of chili.
(COMMERCIAL BREAK)
[03:00:00]
ive new security assistance package worth $800 million including drones, anti-tank weapons, and 20 million rounds of ammunition>
