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Putin Could Be The Richest Man On The Planet; Xi To Biden:" Conflict And Confrontation Are Not In Anyone's Interest"; Oil Prices Spike Back Above $100 As Ukraine Crisis Grows; U.S. Farmers Feel Pressure Of Inflation, Rising Energy Prices; 11-Year-Old Boy Flees War Zone On 600-Mile Journey Alone. Aired 10:30-11a ET

Aired March 18, 2022 - 10:30   ET

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

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[10:30:00]

MARIA PEVCHIKH, HEAD OF INVESTIGATIONS, ANTI-CORRUPTION FOUNDATION: Russian oligarchs buy Russian state-owned companies, money from Russian people, from regular people were stolen and diverted into building this horrendous thing on the Black Sea.

DREW GRIFFIN, CNN SENIOR INVESTIGATIVE CORRESPONDENT (voice-over): According to the investigation and a whistleblower who came forward, the money for the palace came from a Russian investment fund company that solicited charity donations from the Russian oligarchs.

JILL DOUGHERTY, CNN CONTRIBUTOR: There are these rumors about Putin being the richest man in the world. And he may be. It's very, very hard to try to understand what his wealth is, and where it's held.

GRIFFIN (voice-over): Rumored to be worth more than $100 billion, officially, Putin claims an 800 square foot apartment, a few cars and a modest salary in 2020, valued at about $140,000. But his official income is irrelevant. Russia watchers say Putin controls Russia by determining who gets money and who doesn't.

Who gets to run business, who skims profit and how the wealth is passed. He doesn't need any assets listed in his name, says journalist Tom Burgis. It's all his when he asks.

TOM BURGIS, AUTHOR, "KLEPTOPIA": It's closer to something like The Godfather, but ultimately, they owe everything they have to the boss. And with the click of a fingers, as he has shown in the past, Putin can take everything from an oligarch. However rich and however influential they may seem, they are ultimately dependent on him.

GRIFFIN (voice-over): Fight the system, interfere in politics and faces wrath. Exiled Russian oligarch Mikhail Khodorkovsky, who was convicted of tax evasion and fraud, spent 10 years in a Russian prison, he says, for not playing Putin's game. He claims Putin is paranoid, dangerous and must be stopped.

MIKHAIL KHODORKOVSKY, FORMER RUSSIAN OLIGARCH & OIL TYCOON (through translation): All the accounts of all the oligarchs who function as Putin's wallet must be stopped. They must all feel the pain right now and it must continue until the war ends.

GRIFFIN (voice-over): Newly imposed sanctions from the West have now made it hard for many of the Russian billionaires to do business outside of Russia. Yachts, bank accounts, frozen. Inside Russia, the economy shows signs of crumbling, but chipping away at Putin's brutal hold on power through economics will take time. From his actions, observers believe Putin strategy is far beyond personal riches.

DOUGHERTY: He wants to rebuild. Russia is a great power. And you always have to go back to the czarist days to understand that.

GRIFFIN (voice-over): Just look at the gates of Putin's purported palace, a golden two headed ground Eagle, a symbol of Russia, similar to the two-headed crowned eagle that is atop the gates of the Winter Palace that belonged to Russia's last tsar.

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GRIFFIN (on camera): Jim and Erica, financially getting to Putin maybe impossible, but even getting to these oligarchs through sanctions and seizures, it's tremendously difficult. They've gone to great lengths to hide their assets underneath multiple shell companies safely in Western countries, including the United States. One expert who trails this money says literally there is no paper trail on a lot of this money.

Jim, Erica?

ERICA HILL, CNN ANCHOR: I spent a long time making sure it is that way, right? Drew Griffin, I really appreciate it. Thank you.

We are getting some new details from this call between President Biden and Chinese President Xi Jinping. We're going to take a live to Washington after the break. Stay with us.

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[10:38:08]

HILL: This just into CNN, some details of this critical call between President Biden and Chinese President Xi. The Chinese president saying, quote, the Ukraine crisis is something we don't want to see.

JIM SCIUTTO, CNN ANCHOR: CNN White House Correspondent John Harwood joins us now from the White House. David Culver from Shanghai. David, as often happens with these calls we're getting the Chinese readout before the White House read out of this. What are the highlights so far based on how Chinese state media is characterizing the call?

DAVID CULVER, CNN CORRESPONDENT: But Jim, I do actually think it's interesting that the Chinese are putting this out so quickly, especially when you look at what was happening earlier this week in the meeting between Jake Sullivan and his Chinese counterpart, Yang Jiechi, somebody who is a key adviser to President Xi. Out of that meeting, we heard more hard lines coming from the U.S. and the Chinese were kind of playing catch up. It seems even ahead of this video call the U.S. was putting out a harder stance, whereas the Chinese state media were simply heralding this as a discussion of common interest. Now we're starting to see the readout in more detail.

And interesting to note, some of the lines that I'm looking at here from state media, this from President Xi, state-to-state relations cannot go to the stage of military confrontation. Conflict and confrontation are not in the interest of anyone. Peace and Security are the most treasured wealth of the international community.

It sounds like they want an end to the Ukraine crisis, sure. But at the same time, you have to look that there's not a direct push against Russia here. And perhaps this is the strongest you're going to get from China and all of this, they're not going to necessarily go against certainly publicly, Russia. This is an allegiance based in ideology. It's somebody who President Xi considers to be his best friend, President Putin. Those are his words.

And so for him to say now that he wants this crisis to end, that he's promoting peace and stability, it sounds good will the actions meet it? That quote --

SCIUTTO: Yeah.

CULVER: -- remains unknown right now. And we're starting to see some actions within certain sectors of Chinese economy and financial sector.

[10:40:06]

You see, for example, banks that have decided to halt dealings, Chinese banks in Russia. You saw the Chinese regulators of currency decide not to necessarily take action that would have helped the ruble from plummeting in Russia.

SCIUTTO: Yes.

CULVER: And you see Chinese folks pushing back against the use of aircraft parts in Russia. Russia had asked actually for some airline assistance, China said no. So, I mean...

SCIUTTO: Yeah.

CULVER: -- those are indicators. Is it a full step forward? We don't know where it's going to go from here. This call will be telling.

HILL: And John Harwood is, you know, as David pointed out, trying to serve China almost get ahead of this, in some ways, especially based on what we saw after that meeting with Jake Sullivan. When do we expect to hear a little bit more from the White House, has anything been trickling out?

JOHN HARDWOOD, CNN WHITE HOUSE CORRESPONDENT: No, when I keep checking my phone, we do not have anything from the White House on this, despite what the Chinese have put out. But I do think it's significant even without a direct call for Russia to halt the conflict, it's important that China sent the signal that it set, that is it shows that it's very aware of which way the wind is blowing around the world on this conflict.

As it gets more ugly and savage, they emphasize the desire for peace among nations and not military conflict. That is a very limited step. But it shows that they know that sentiment around the world is turning against this war. And that is precisely why President Biden wanted to be on this call today to try to take this moment when it looks very ugly, for what Russia is doing.

And try to emphasize to China that the economic relations that you have with the rest of the world that have been so valuable to China are at risk from sanctions if you decide to intervene. So we'll see if anything tangible comes out of it, David, pointed to a couple of things that already have come out, small steps. And the question is, do we get bigger ones?

SCIUTTO: David, you can learn a lot given its media is state controlled. In China from the way the media is covering this story prior to the invasion to see Xi and Putin standing next to each other a show of friendship. And then some statement since then, where the Chinese have echoed Russian disinformation about the war in Ukraine. In recent days, have you seen the tone of coverage there change at all of this war?

CULVER: It's still is heavily focused on what the Kremlin is putting out. I mean, it's essentially parodying what the Kremlin wants from a propaganda perspective. One thing you do start to see is a bit more on Chinese social media, if permission, if you will, because they obviously can censor, as you well know, and shut things down for a different view to come up a bit.

I mean, they're still resistant and allowing an attack totally against Russia. They're still very protective of that. But you do start to see a bit more surface that would suggest, OK, perhaps they're starting to see different perspectives. One thing that John pointed out, though, that was interesting is the sanctions, I think they're terrified of the reality of economic sanctions affecting them here

I mean, we are in the midst of lockdown here in Shanghai, and the country right now is dealing with a COVID flare up, that has real economic repercussions here, and they're still dealing with it from the outbreak two years ago. So add to that anything that could come from this tension between Russia and Ukraine. And if it has negative effects here on Chinese economy, you can see that China's going to perhaps...

SCIUTTO: Yeah.

CULVER: -- take action to avoid that.

SCIUTTO: It's a great point. China's economy is vulnerable right now with the COVID. Lockdown there, further sanctions from the west. They must be viewing very -- with a little bit little bit of fear. David Culver, John Harwood, thanks so much.

CULVER: Yes

HILL: Oil prices are once again on the rise that impact being felt including among farmers. Some already reeling from soaring inflation rates. We're going to show you how some are switching crops to try to break even the question of course will work. That's next.

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[10:48:49]

SCIUTTO: U.S. drivers across the country, they're keeping their eyes on the pump this morning after oil prices search back up above $100 a barrel on Thursday that had been below $100 for some days.

HILL: Yes. The yo-yo feeling is there. Energy prices being watched very closely on Wall Street and also in the heartland where there is a growing concern that farmers won't be able to keep up with these rising costs.

Joining us now CNN's Matt Egan and CNN Business and Politics Correspondent Vanessa Yurkevich joining us with on this. So Matt, first of all, let's take a look at these oil prices. Where do they stand right now?

MATT EGAN, CNN REPORTER: Well, Erica, WordPress has been all over the place. I mean, you can't look away otherwise you're going to miss either a massive sell off or spike or both. Really been crazy moves. Well, when skyrocketed to 2008 levels around $130 a barrel after Russia invaded Ukraine, then they crash below $100 a balloon.

Now they're heading back higher. U.S. crude soared 8 percent. yesterday jumping today to around $104 as we speak. They're off the worst levels of this crisis but they're certainly very painfully high. I think there had been a sense on Wall Street that maybe there could be a ceasefire reached between Russia and Ukraine.

[10:50:00]

But now there is a growing fear sense of a, you know, prolonged war in Ukraine and that would obviously kill not only many innocent people here, but also really disrupt Russia's energy supplies and the world still relies on Russia's oil, You know, is one market veteran put it to me, the mood has darkened here.

A lot of questions about what this means to, gasoline prices, oil prices, this matters a lot to the economy, business owners and of course, farmers in the heartland where Vanessa is right now.

HILL: Yes.

SCIUTTO: Vanessa, rising prices of course pressure on a lot of industries but on farmers as well. How do they feel in it?

VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Well, we're hearing from the American Farm Bureau that farmers can expect to spend 6 percent more this year on farm costs. That is coming off of a 12 percent increase last year. And, you know, all of the machinery and equipment that farmers use, they run on diesel.

Diesel is over $5 for the national average just about that high here in Indiana. Josh Everhart, the owner of this farm says that he shocked when he has to fill up his four semi-tractor trailers with gas. And his father Chris Everhart says he's hoping that the wheat planted around me will make enough money to help offset these rising energy costs.

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JOSH EVERHART, EVERHART FARMS: You don't want to see the bill.

HILL (on-camera): You don't. What is it look like?

UNIDENTIFIED MALE: If you look at, you're like, oh, no.

HILL: What is it looking like?

YURKEVICH: Well, I mean, $1,000 or 1000 gallon tank is $4,000.

CHRIS EVERHART, EVERHART FARMS: Well, we had the opportunity to make some money. But equipment costs are going up, just like vehicles. Farm equipments gone up that much or more. Fuel, fertilizer, seed, labor cost, if you know if you're using hired labor. So all those things come into it.

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YURKEVICH: And so you're hearing a little bit of that stress there. We've heard stress from other farmers saying that this is actually a more anxiety ridden year right now compared to the height of the trade war with China just two years ago. They're feeling distressed because so much is out of their control. The rising fuel costs, the war in Ukraine.

But it's important to note that farmers are very hopeful people. They are hoping for a good strong crop this year and that we -- prices will continue to rise. We have a couple more months before this wheat grows to its harvesting capability. But farmers hopeful but watching these rising costs very closely. Jim, Erica?

HILL: Yes. And another reminder, right of the ripple effects and just everything that is going up, especially when I heard him Jake, give us that list. Vanessa Yurkevich, Matt Egan, thank you both.

Up next here, an 11-year-old boy who spent days traveling across Ukraine alone, with no money, what he shared with CNN now that he is safely across the border.

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[10:57:36] SCIUTTO: Among the more than 3 million Ukrainian refugees so far in this war, there is a brave 11-year-old, his name is Hassan, who traveled more than 600 miles by himself across Ukraine through the war to Slovakia.

HILL: Don Lemon spoke with Hassan and his siblings about that harrowing journey to safety beginning with a difficult moment. He had to leave his mom.

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DON LEMON, CNN ANCHOR: What did she say to you when she -- when you Left?

HASSAN AL-KHALAF, TRAVELED 620 MILES ALONE (through translation): She wished me lots of luck and that I wouldn't be crying and sad.

LEMON: We you worried though?

AL-KHALAF (through translation): Of course. Always worried.

LEMON (voice-over): Hassan alone, traveled all the way to Bratislava in Slovakia, where he found his older brothers and sisters. They had journey to head earlier to meet up with their older brother who was studying in Slovakia. And that's where I met them today.

(on-camera): So you had a bag.

AL-KHALAF (through translation): Yes, I had one bag.

LEMON (on-camera): And then you had a number written on your hand?

AL-KHALAF (through translation): On my right hand.

LEMON (on-camera): Did you have money with you?

AL-KHALAF (through translation): No, no money at all.

LEMON (voice-over): Hassan says he got his hope from his mother who desperately wanted him to get to safety. And now she too is safe. She was able to reach Slovakia Tuesday and reunite with Hassan.

PISECKA YULIA VOLODYMYRIVNA, HASSAN'S MOTHER: I cannot leave my mother. She's 84 and she's not mobile. Thus, I had put my son on the train to go to Slovakian border where he was met by the people with big hearts. I would like to express my sincere gratitude to all the Slovakian border guards and all the volunteers of Slovakia who shouted my child, who helped him to cross the border on his own.

LEMON (voice-over): Hassan's rescue was a family affair. Some of his siblings gave their mom advice on the best way to get her son out of the war torn country. But there were times they were scared that he would get lost.

(on-camera): Did you think he wasn't going to make or that he would get lost so that you would never see him again? KINANA, HASSAN'S SISTER: I was believe that he will be with us because he's very clever. And he could also home have phone, call us.

LEMON (on-camera): Yes.

KINNA: And we was helping him. But when I saw him I thought now I can relax.

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SCIUTTO: Quite a story and we saw so many families like that mostly women and children having to flee for their lives. A remarkable to do on your own that age.

Thanks so much to all of you for joining us today. I'm Jim Sciutto.

HILL: And I'm Erica Hill. Stay with us "At This Hour" with Bianna Golodryga starts right now.

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