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World Economy Recession. Ukrainians Find Peace in Mountain City Slavsko; Russia Continues Bombing Ukraine; War Disrupts Global Markets and Increases Food Insecurity; Shanghai Goes Into Lockdown for COVID Testing; Academy Awards Fight. Aired 11p-12a ET

Aired March 27, 2022 - 23:00   ET

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

[23:00:00]

ERIN BURNETT, CNN HOST: And thanks to all you for being with us. Don't forget you can watch OutFront anytime, you just have to go to CNNgo. Our coverage continues.

ANNOUNCER: This is CNN Breaking News.

LYNDA KINKADE, CNN ANCHOR: Hello, and welcome to our viewers in the United States, and all around the world. I'm Lynda Kinkade at the CNN Headquarters here in Atlanta. We are following breaking developments out of Ukraine where just hours ago CNN teams on the ground in Kyiv heard a loud explosion followed by sirens.

It comes as an advisor to President Volodymyr Zelenskyy says Russian forces are stepping up their missile strikes across the country. Including in the city of Kharkiv already the site of widespread destruction. Russia's assault from the air coming as Ukrainian forces launch counterattacks on the ground and gain back some territory.

On Tuesday the two sides are set for another round of talks in Turkey. So far these discussions have failed to yield any real results. Still, President Zelenskyy shared his hopes for the latest negotiations.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, PRESIDENT OF UKRAINE (through translator): Our priorities in the negotiations are known. Ukraine's sovereignty and territorial integrity are beyond doubt. Effective security guarantees for our state are mandatory. Our goal is obvious, peace and the restoration of normal life in our native state as soon as possible.

(END VIDEO CLIP)

KINKADE: Well, meantime, Ukraine says there will be an immediate investigation after a video surfaced showing what appears to be Ukrainian soldiers shooting Russian prisoners in the knees.

It was said to have taken place during an operation in the Kharkiv region. Well, U.S. officials are trying to walk back U.S. President Joe Biden's fiery remarks about Vladimir Putin on Saturday.

(BEGIN VIDEO CLIP) JOE BIDEN, PRESIDENT OF THE UNITED STATES: For God's sake, this man cannot remain in power.

(END VIDEO CLIP)

KINKADE: Well, Mr. Biden's off-the-cuff remark delivered at the end of his visit to Poland send shockwaves around the globe. The White House quickly clarified that he was not calling for regime change in Moscow. Although Biden administration officials echo those comments on Sunday as do the U.S. president himself.

(BEGIN VIDEO CLIP)

UNKNOWN: Mr. President, do you want Putin removed? Mr. President, were you calling for regime change?

BIDEN: No.

(END VIDEO CLIP)

KINKADE: Well, meanwhile, some European leaders seem to be distancing themselves from Mr. Biden's remarks calling Vladimir Putin a butcher. French President Emmanuel Macron suggested the comments could escalate the situation.

(BEGIN VIDEO CLIP)

EMMANUEL MACRON, PRESIDENT OF FRANCE (through translator): I think we must keep to the facts, and do everything to not escalate things. I wouldn't use this type of wording because I continue to hold discussions with President Putin. What do we want to do collectively? We want to stop the war that Russia's launched in Ukraine without waging war, without escalation.

And through diplomatic means, the objective is to obtain a ceasefire and complete withdrawal of troops. If this is what we want to do we should not escalate things neither with words nor actions.

(END VIDEO CLIP)

KINKADE: Well, British officials are also reacting to President Biden's comments. A member of Prime Minister Boris Johnson's Cabinet says Downing Street believes it's up to the Russian people to decide who leads them.

Well, Ukrainian forces have pushed back the Russian Military in some of the rural areas outside of Kyiv. But not after intense fighting destroyed homes and villages. ITV's Rohit Kachroo has this look at a town obliterated by Russian strikes not far from the Ukrainian capital.

(BEGIN VIDEOTAPE)

ROHIT KACHROO, ITV CORRESPONDENT (voice-over): Shevchenko survived but not much else did. A statue of the Ukrainian poet still stands after almost everything else was wiped out by a Russian airstrike. The library was hit, residents take the books they might have once borrowed.

The town hall was destroyed too, and the shop for kids, and the pharmacy, and even the off-license. Byshiv is a village one hour from Kyiv and it tells two stories. The crater reveals the force of Russian might but there's a story of failure too.

More than a month into this war life of sorts carries on. The Russian troops never arrived although plans were laid to stop them getting in.

It looks like an earthquake hit. There is complete destruction absolutely everywhere. But maybe the most interesting thing to see is not the fact this place was flattened but the fact it wasn't flattened into submission.

[23:05:00]

In the capital, monuments are being protected as history is rewritten. Because met with a fierce resistance Moscow now says it no longer wants to focus on the capital but the Ukrainians don't believe that.

COL. OLEKSANDR MOTUZYANYK, UKRAINIAN DEFENSE MINISTRY SPOKESPERSON: (Speaking in foreign language).

MOTUZYANYK (through translator): We cannot trust them. At the moment we don't see Withdrawal of Russian troops from certain areas of Kyiv.

KACHROO: Because you needn't go far from Kyiv to see the area around it was in Russia's sights until not long ago. And the strategists protecting the capital believe nothing has changed.

Rohit Kachroo, ITV News, Byshiv.

(END VIDEOTAPE)

KINKADE: Well, the heavy fighting in the city of Mariupol is devastating the lives of those who remain. Many who have taken shelter in basements during the Russian bombardment are returning to find their homes destroyed.

(BEGIN VIDEO CLIP)

UNKNOWN, MARIUPOL RESIDENT (through translator): I've lived here since my birth, my husband as well. We got married here and had babies. What now? What is left for us? I don't want to go anywhere from Mariupol but there's nowhere to live here.

(END VIDEO CLIP)

KINKADE: Well, it comes as Ukrainian officials say humanitarian aid is beginning to wane adding that more support is desperately needed right now. According to the United Nations, more than 3.8 million people have fled Ukraine to nearby countries, and another 6.5 million are displaced inside Ukraine.

Well, crossing the border is just one stop on a long journey for many refugees. And there's no telling where it might end. CNN's Ed Lavandera has more from Lviv near the border with Poland.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CORRESPONDENT, CNN: We are now more than a month into the war here in Ukraine and the refugee crisis continues. I spent a great deal of time in the last few weeks reporting from the Polish border city of Przemysl.

City officials there tell us that they're still getting about 1,000 refugees a day coming through the train station there in that city. At one point in the early days of the war, they were getting about 50,000 to 60,000 refugees a day in that region. And so even though the numbers have declined dramatically there is still a steady stream of people arriving.

Not only just there, the 1,000 or so at the train station every day but there are still several thousand crossing by foot at the land crossing several miles away from there. So the need for humanitarian care, the need for housing for many of these refugees still moving into much of Europe is still very much needed.

And right now the focus on helping those refugees is to get them away from the border region, putting them on buses and heading to cities like Warsaw, Krakow, deeper into Poland, and from there they can start reassessing and figuring out where they're going to go.

And of course, the big question that so many of these people are facing right now is just how long are they going to be gone? Where do they set up? Where do they find a place to live for what could be weeks if not months? Those are the questions that are facing so many of these families.

And it's a question that just continues to happen as this refugee crisis continues of folks leaving Ukraine trying to find safe haven in other parts of Europe. Ed Lavandera, CNN, Lviv, Ukraine.

(END VIDEOTAPE)

KINKADE: Well, Russian President Vladimir Putin has framed Russia's invasion of Ukraine as a campaign denazification. That description has been widely dismissed by historians and political observers.

Keep in mind Ukraine's president is Jewish, and some of his family members were killed in World War II. So with the next round of talks between the two countries set to begin Tuesday take a listen to what Volodymyr Zelenskyy had to say during an interview on Sunday.

(BEGIN VIDEO CLIP)

ZELENSKYY: (Speaking in foreign language).

ZELENSKYY (through translator): We won't sit down at the table at all if all we talk about is some demilitarization or some denazification. For me, these are absolutely incomprehensible things.

(END VIDEO CLIP) KINKADE: Susan Glasser's a CNN Global Affairs analyst, and joins us now. Good to see you, Susan.

SUSAN GLASSER, GLOBAL AFFAIRS ANALYST, CNN: Good to see you, thank you.

KINKADE: So I want to start with the Zelenskyy interview. Ukraine's president gave this 90 minutes Zoom interview to four Russian journalists, the Kremlin squashed it. How extraordinary is it the way the Kremlin is not only pushing its own propaganda, it's censoring anything that doesn't support their narrative.

GLASSER: Yes, that's right, I mean, you know, the Iron Curtain has fully descended on Putin's Russia, and with such speed, I think that it's still taken us aback. But you know, you have the Nobel Prize winner Dmitry Muratov saying he cannot publish an interview.

[23:10:00]

And you know, you get a sense of how quickly Russia has closed what remained a freedom of speech. Immediately, interestingly, you have President Zelenskyy taking advantage of that and then giving an interview to other journalists and pointing out, you know, that Russia's so afraid of him they're censoring interviews.

Zelenskyy has been a sort of one-man weapon of soft power in this war. He's been probably Ukraine's most effective international weapon. He's spoken, obviously, to Parliaments around the world including the U.S. Congress, now speaking directly to Russian journalists and to the Russian people in any way that he can.

It's really quite remarkable how successfully they've deployed President Zelenskyy.

KINKADE: It really is, and, Susan, it was interesting that the journalists inside the country couldn't publish it given the threat of jail time. But those outside the country did. I want to play a small part from that interview. Let's just take a listen.

(BEGIN VIDEO CLIP)

ZELENSKYY (through translator): The reality is this, the city is blocked by the Russian Military. All entrances and exits from the city of Mariupol are blocked. The port is mined; a humanitarian catastrophe inside the city is unequivocal because it is impossible to go there with food, medicine, and water.

The Russian Military is shelling humanitarian convoys, drivers are being killed. What happens to these cargos? I can't tell you. Many of them were taken back.

(END VIDEO CLIP)

KINKADE: Ukraine's president there describing just how dire the situation is in Mariupol. Susan, is it clear whether anyone in Russia is getting access to the truth about the reality on the ground? GLASSER: Well, obviously, the, you know, the state media, which is by far and away, you know, the main way in which most Russians are getting their information is filled with not only censored information or untrue information. But just wild, outrageous claims about Ukraine.

I mean, it's really the inversion of reality turning President Zelenskyy, Ukraine's first Jewish president, three of whose grandfathers were killed in the Holocaust. Turning him into the leader of the -- a Nazi nation that needs to be denazified to -- no, the answer is Russian people are not getting the correct information about what's happening in Mariupol.

It is possible as it is in China and other places that are -- imposed censorship on their people, it is possible if you get a VPN to find your way to accurate information or go back to the old Cold War ways of listening to the BBC on shortwave radio. You know, that's the situation we find ourselves in.

But you know, the siege of Mariupol is just absolutely horrifying, you know, a crime against any definition of the law of war. It just -- it's just horror. But unfortunately, it's not the first time Russia's done something like this to a city in wartime.

KINKADE: Yes, you're right. And of course, we are seeing this -- a changing strategy if you like according to Russia. They claim the first stage of the operation is over, and that they are now focusing their efforts in the Donbas region. What do you make of that? Especially given we are seeing those Russian strikes near Lviv in the west of the country?

GLASSER: Well, a couple thoughts. One, first of all, the missile strikes in Lviv seemed very clearly designed to be sending a message as opposed to signaling a major new front in the war. President Biden was just over the border in Poland giving a very, very full-throated speech at that moment criticizing Russia.

And those missile strikes seemed designed to send a message from Russia that hey, we can strike where we want. Including the western part of Ukraine that, you know, was mostly outside of the combat zone number one.

Number two, as far as the question of whether Russia really is kind of recalibrating its war aims, first of all, that's a sign of the incredible failure so far of Putin to achieve any of his strategic objectives. I think one of the reasons so many people are so concerned about what's happening this war, and what kind of end game can you envision is that Putin has been so unsuccessful.

He hasn't even managed to sort of conquer the eastern part of the country that was, you know, the first goal that he set for himself after seizing Crimea in 2014. So maybe that's a recalibrated war goal, maybe that's just a sign of retrenchment after a month and the need to supply and regroup Russian forces who have failed to take Kyiv or other major cities. We don't know yet.

KINKADE: As always, Susan Glasser, good to get your perspective. We'll leave it there for now. Thanks so much for your time.

GLASSER: Thank you.

KINKADE: Well, some families have found a unique place to lift their spirits as they wait for the war to end. Coming up we'll see how they've turned a mountain sanctuary into a temporary home.

[23:15:00]

(COMMERCIAL BREAK)

KINKADE: You're listening to choirs in Spain leading a global live- streamed sing-along in support of peace in Ukraine. Many gathered in Madrid Sunday wearing blue and yellow ribbons with some holding signs urging peace. The organization Choirs for Peace created the event and were joined by choirs from Portugal, and eight other countries.

Singers also observed a minute of silence before the event to honor victims of the war. Well, U.S. President Joe Biden's powerful denunciation of Vladimir Putin Saturday in Poland may be controversial in some quarters. But the Ukrainian ambassador to the United States approved.

Oksana Markarova spoke earlier with our Dana Bash and said the Russian president is a threat to democracies everywhere.

(BEGIN VIDEOTAPE)

OKSANA MARKAROVA, UKRAINIAN AMBASSADOR TO THE U.S.: The reason why Putin attacked Ukraine is, of course, because he wants to eliminate us as a free democratic neighbor. But it's also because he hates everything that is democratic. That he would like to destroy anything that is not autocratic and that is -- that cannot be occupied.

[23:20:00]

So it's up for all of us to understand that we have to stop it. And in order to stop it, we have to -- we never has the boots on the ground but we ask all the civilized countries to provide us with all the tools necessary in order not only to defend us, to defend Europe but also to stop it and stop this war.

DANA BASH, CNN ANCHOR: The president, President Biden, said that Vladimir Putin cannot remain in power. The White House walked it back, as you saw, saying the U.S. does not support regime change. What's your reaction to this?

MARKAROVA: It was a great speech of President Biden. He clearly said that U.S. is and will be with Ukraine in this fight. And we really appreciate it, and we would like everyone to be with us in the most possible ways.

Now, we all understand, and we see it and so I would like to thank all journalists for spreading the truth and showing for what it is. It's a brutal aggression of a neighboring country of a peaceful neighbor that never posed any threat unless being democratic is a threat. Russia attacked in 2014, they started full-fledged war 33 days ago.

They killing civilians, killing children, destroying our hospitals, you know, civilian infrastructure, residential homes everywhere. It's an act of war criminal, that's why we have opened investigation in Ukraine. That's why Ukraine submitted all the application to all international courts.

And yes, Vladimir Putin together with everyone, every Russian that is responsible for it, will have to end up in jail for this war crimes. So yes, he has nothing to do to lead a state if Russia would like to be a democratic or even a civilized state.

BASH: So you're saying that there should be a regime change?

MARKAROVA: Well, you know, it's clear to us that Russia is a terrorist state led by a war criminal. And we are working day and night, and fighting fiercely to defend our land. And to defend our democracy, and everyone should be brought to justice. So I think it will be difficult to run a state from The Hague.

(END VIDEOTAPE)

KINKADE: Well, thousands of people who fled the terror are finding peace and security in an unlikely place. CNN's Salma Abdelaziz talks with some of them in the mountain sanctuary they now call home.

(BEGIN VIDEOTAPE)

SALMA ABDELAZIZ, CNN REPORTER (voice-over): Nestled deep in the Carpathian Mountains far from the bombs and bullets lies the idyllic ski resort of Slavsko. With plenty of room for those fleeing violence to find solace in the slopes. Many hotels have opened their doors to displaced families. Some at no cost or discounted rates. Guests Stacy (ph) and Ramir found refuge here after Russian forces invaded their hometown of Kharkiv.

RAMIR HOLUBOV, FLED KHARKIV: During this time we're usually heard like shells blowing up, lots of bombardment.

ABDELAZIZ: How did you feel when you arrived?

UNKNOWN: When you look at these mountains and into the news, it seems like not real.

HOLUBOV: And you're here, you're safe, it -- feel kind of guilty because, in the beginning, I left home, my family there.

ABDELAZIZ: After a terrifying week mom and daughter finally squeezed onto a train out of embattled Kyiv, but where to go? Then they remembered a special family trip.

LARVSA KOALVOVA, FLED KYIV: Yes, we love this place because our summertime we arrived (ph) here.

ABDELAZIZ: So you had good memories here?

KOALVOVA: Good memory. We have good memory -- we had good memory this -- in this place.

DIANA KOVALYOVA; FLED KYIV: I feel safe here but I hope that this will end soon and we'll go home because living at home is much better because it's my home.

ABDELAZIZ: This tiny mountain community of Slavsko has taken in 3,400 displaced people. Nearly doubling their population but they say it's not a burden, they want to share this sanctuary.

Some have chosen less traditional accommodations, Osla (ph) found peace for her two children in this glamping pod.

UNKNOWN (through translator): My daughter wakes up every morning, opens the curtains, wipes the due from the windows, and looks out at the view. She tells me, yes, she loves it here. It's calming, I feel lighter, and I start to believe everything is going to be OK.

ABDELAZIZ: For these families, this feels like the safest place in a country where it seems everywhere is a frontline. Salma Abdelaziz, CNN Slavsko, Ukraine.

(END VIDEOTAPE)

KINKADE: Well, the war in Ukraine is having an effect far beyond the country's borders. Prices for commodities like wheat are soaring and driving fears that a global economic downturn could be next. We'll have that story when we come back.

[23:25:00]

(COMMERCIAL BREAK)

KINKADE: Welcome back to our viewers here in the United States and around the world. I'm Lynda Kinkade, good to have you with us. Well, more details now on our top story this hour. Ukraine's president says his country is ready to accept a neutral non-nuclear status as part of a peace deal with Russia.

It comes as both sides are expected to meet this week for another round of negotiations in Turkey. On the ground, though Ukrainian officials say Russia is launching more and more missile strikes across Ukraine. Especially in Mariupol. The city has been the target of Russian attacks for weeks.

And the near-constant fighting has trapped thousands of civilians inside. While meanwhile, Ukrainian troops have gained some ground launching counter offenses to take back territory from Russian forces.

Though the country's military intelligence chief suggested Sunday that Russia is now changing its focus to the south and east attempting to carve Ukraine in two after failing to take the capital Kyiv. Well, ripple effects from Russia's invasion of Ukraine are hitting world markets and driving fears of a possible global recession.

Prices of commodities like wheat are rising sharply. Humanitarian groups say that's contributing to food insecurity since price changes hit developing nations hard. Russia and Ukraine together export nearly 30 percent of the world's wheat supply. European's Central Bank president Christine Lagarde explains.

(BEGIN VIDEO CLIP)

[23:30:00]

CHRISTINE LAGARDE, EUROPEAN CENTRAL BANK PRESIDENT: The war that is going on at the moment, particularly at the time of - at, you know, the planting of seeds is going to create a massive disruption on markets. It has begun already. If you look at the price of food it has gone up by about 40 percent.

(END VIDEO CLIP)

KINKADE: Another factor impacting the global economic outlook, crushing economic sanctions on Russia imposed by the west. To explore these issues further, we're joined by Catherine Rampell. She's a CNN Economics and Political Commentator and a "Washington Post" Opinion Columnist. She joins us now live from New York. Good to have you with us, Catherine.

CATHERINE RAMPELL, CNN ECONOMICS & POLITICAL COMMENTATOR: Great to join you.

KINKADE: So the big question right now is whether a global recession is the price we'll pay for punishing Putin. What are the factors playing into that possibility?

RAMPELL: I should say, first of all, a global recession is not inevitable, but the chances of a global recession have certainly risen in recent weeks, and that's partly, as you point out, because of the sanctions against Russia, which have disrupted energy markets and have disrupted a number of other commodity markets, but energy markets are the most important of those in term of the immediate economic impact, and then, of course, we'll see hunger, deprivation, and other economic costs coming from the disruption in the weed (ph) market.

But the war itself, of course, is a cause as well or a higher risk factor because it will be more difficult to get these core food items to much of the world. It will be more difficult for energy for various kinds of metals to get around the world even if there aren't sanctions against them, and not every country, of course, has decided to bar imports of Russian oil or Russian natural gas at this point.

So those are the two big risks, the war itself and the sanctions, and then, of course, there's a - there's another issue, which is how policy responds.

KINKADE: And Catherine, I want to ask you more about the food supply issues in just a moment, but if we just focus on energy the U.S., of course, has stopped importing energy from Russia. The U.K. will cut it by the end of this year, and, of course, Europe is trying to wean off it in the coming years. But while energy, of course, hasn't been sanctioned at this stage, energy prices are soaring. Just explain that further. RAMPELL: Well there are a few things going on. One, of course, is that it's just more difficult to get various kinds of energy products and natural gas and oil out of Russia right now. No one wants to touch Russian ships. No one wants to ensure Russian ships that may be carrying these products. So even if there isn't a formal government policy that says such and such a country or companies that are located in that country cannot import that oil. It's just logistically very difficult.

And then a lot of companies have voluntarily said we don't want to deal with Russia whether for moral reasons, for logistically reasons, or bad P.R. for that matter. You may recall that a couple of weeks ago Shell decided to buy a bunch of Russian oil at a discount, and as far as anyone can tell, you know, that was in compliance with all laws that they have to abide by, but there was such severe blowback for that purchase that Shell said we're going to donate the profits, we're going to stop buying oil, et cetera.

So there are a number of private companies that are voluntarily deciding we don't want to deal with Russia. And as a result that has restricted the availability of oil on the global market even though demand is quite strong. So all of those factors together are pushing up energy prices and are quite painful for the consumers and businesses that depend on energy.

KINKADE: Earlier this week the World Food Program's Executive Director said, "Get ready for hell." That was his warning if we don't address this food crisis right now. I don't think a lot of people realized going into this war how much the world relies on Russia and Ukraine for so many products. Sunflower oil, wheat, barley, maize. We've got a graphic here. You can see sunflower oil accounts for 42 percent coming from Ukraine, 21 percent from Russia. And maize, obviously, 16 percent from Ukraine, a lot less from Russia, and what significantly.

That was from 2019. Those figures have since risen. What is going to happen with this disruption when it comes to food prices?

RAMPELL: Well we've already seen food prices go way up in recent weeks and months partly in anticipation, of course, of the potential conflict which is no longer potential. It has already happened. And we have this wheat-growing season that would normally be occurring right now in Russia and Ukraine. Obviously severely disrupted, and the consequence of all of this is that prices are going to go up.

[23:35:00]

The countries that are most reliant on food from that part of the world, which is primarily developing countries and the World Food Program, for example, sources a lot of its wheat from Russia and Ukraine traditionally. Those places are going to suffer a lot of hardship. You're going to see prices go up, you're going to see hunger go up, and you're going to see economic slowdown as a result of that deprivation. It's going to be very, very painful. And these were foreseeable consequences, of course, of this unprovoked invasion, and we are now seeing them. KINKADE: And Catherine, let's just look at what's happening to Russia, the impact of the sanctions already being felt, major global firms pulling out of the country, and certainly plenty of Russians leaving. There's certainly a brain drain even if this war were to end in the coming weeks or coming months, the ramifications will be felt long-term, right?

RAMPELL: Yes. Certainly in the very near term this is going to be extremely painful for Russia. We've seen huge contractions already. Because it's difficult to have day-to-day economic activities, you know, happen as normal if your financial system no longer is operating normally. If businesses are pulling out, if people can't do their jobs because websites are blocked, et cetera.

So in the very near-term there's going to be a lot of economic pain in Russia. We've already seen that, and then the real question is what's the longer-term consequence? Even if this war were to end today, and obviously we all hope that it would, what kind of effect does this have on investment in the country? If you are a skilled Russian worker, what future do you see for yourself in this country in terms of your livelihood, in terms of your freedoms? We already see a lot of I.T. workers in Russia, for example, rushing for the exits. I think you'll see a lot of other creative technical types who may have opportunities abroad try and do the same thing.

You know, in addition to political dissidence, protesters, journalists, others who may be fearing for their lives, those who are less politically-inclined may want to leave as well because they just don't see a future for themselves there at least under this leadership.

So in the long run, yes, that's going to be very hard on the Russian economy, and other countries, you know, may be able to benefit from that if we see a lot of skilled Russian workers deciding that they want to leave the country and take their talents elsewhere, which, you know, we saw this during the Cold War. We saw this immediately after the fall of the Soviet Union. We saw a huge brain drain from Russia. A lot of mathematicians and scientists left for the west when they were finally able to do so, and I think you'll see another wave of emigration happening in the immediate future, too.

KINKADE: Yes, no doubt. Good to have you on the program. We did have some technical issues trying to connect, but glad we could get you on the show. Catherine Rampell, thanks so much.

RAMPELL: Thank you.

KINKADE: And still to come on CNN, China's financial hub is going into lockdown with COVID cases surging. We'll have a live report when we come back.

(COMMERCIAL BREAK)

[23:41:58]

KINKADE: Welcome back. China's financial hub is going into lockdown for mass COVID-19 testing. The Shanghai government says half the city begins four days of lockdown on Monday and the other half will follow on Friday. All residents, more than 25 million in all, must be tested to maintain a green health code status just so they can go to grocery stores and other public areas.

Well CNN's Beijing Bureau Chief, Steven Jiang, is following the story and joins us now. Good to see you, Steven. So while many countries around the world are dropping restrictions and opening up, you've got Shanghai, a city home to some 26 million people, going into a two- stage lockdown.

STEVEN JIANG, CNN BEIJING BUREAU CHIEF: That's right, Linda. This really follows days of confusion or even chaos both on the streets but also online in terms of what the authorities would do to Shanghai, which is experiencing its biggest surge of COVID cases since the pandemic began. Now for days, remember, authorities denied they would impose a city-wide lockdown.

Police in Shanghai actually has launched investigations against some (inaudible) mongers about this imminent lockdown. Now when you look at the numbers, 16,000 cases since March, but this is a city of 25 million people as you mentioned. It's still a very small fraction, and also the overwhelming majority of these cases, 97 percent asymptomatic, so all of this really matching what we have seen elsewhere with the Omicron variant, very contagious but resulting in milder or even cases with no symptoms that do not really require much hospital care or even medical attention.

But, you know, and also remember for a long time the city really had pride itself on its less disruptive approach to COVID containment. So for a long time a lot of people pointed to Shanghai as the shining beacon of hope that could eventually inspire other cities in China to really adopt this more lenient and targeted approach to eventually leading to the country being open, but instead, of course, we're seeing the exact opposite is happening right now with the Shanghai authorities adopting some of the more - the harsher measures we have seen elsewhere previously, including as you mention even though it's a two-step approach their lockdown this is still sealing off millions of residents at their homes and also, of course, shutting down most of the city's transportation - public transportation, including the world's biggest metro system, really leading to a lot of panic buying at stores or even takeout restaurants as well as problems at hospitals because people, again, trying to seek medical attention for other illnesses being turning away - being turned away or even dying as a result.

So all of this, of course, is now leading to the question of what the Beijing authority's going to do because untimely they are the one who are calling the shots. Linda -

KINKADE: Yes, exactly. So Steven, the impact of a shutdown especially if it's prolonged could have global ramifications, right?

JIANG: That's right. You know, the authorities are putting on a very brave face publically saying all the essential workers in the financial sector - [23:45:00]

-- for example, have been working inside a so-called closed loop system, which is what we saw during the Beijing Olympics, but how sustainable that is remains to be a big question. And also remember since the pandemic began, Shanghai has been the gateway in terms of international flights into China. 50 percent of all arriving passengers and 70 percent of all imported cargos. So now, of course, as a result of this latest wave of cases the authorities have been diverting flights operated by Chinese carries to other cities, but international carriers who are still, you know, have to fly to Shanghai now start to cancel flights. And then, of course, cargo is a huge problem as well.

So this is really, as you say, is going to cause a lot of headache and even heartaches as that's why starting - we're starting to a lot of public fatigue, frustration, or even anger bubbling just beneath the surface at least on line that may disperse out. Linda -

KINKADE: All right. Steven Jiang, we'll leave it there for now in Beijing. Good to have you with us.

Well a former NBA star is trying to boost Africa's economy through his coffee company and investment in a basketball league called NBA Africa. CNN's Zain Asher spoke with Dikembe Mutombo about his ambitious business endeavors at the Dubai Expo 2020.

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DIKEMBE MUTOMBO, FOUNDER AND CHAIRMAN, DIKEMBE MUTOMBO FOUNDATION: As you know, coffee is a number two commodity trade in the world with more than $385 billion a year, but there's not many African representative on the table, and that was one of the reason really pushed me really to get on this business, not that the majority of the coffee come from the beautiful continent of Africa.

ZAIN ASHER, CNN ANCHOR: And talk to us a bit more about how this coffee company, your coffee company is putting women to work specifically on the continent.

MUTOMBO: It was really important when I realized that almost like a 40 percent top 50 percent of our worker, especially from work on the field (ph) are mostly women. And their voices are not represented, and nobody talk about them. I felt what was really important as a company (inaudible) to address that issue, to try to figure out how can we help those women because most of those women are our mother, sister, cousin, auntie, and grandma. And more that we talk about them the more that we get a chance to address the issue that so many women are facing today in the workforces.

ASHER: I want to talk to you about NBA Africa. I'm sure this is obviously dear to your heart.

MUTOMBO: Yes.

ASHER: Tell us about your investment in NBA Africa and what you hope the league will achieve on the continent?

MUTOMBO: NBA Africa investment was a great thing to offer, and by some of our African players we are playing the NBA (ph) including other investor from the continent and the NBA in particular to invest more than a billion dollar in the continent to start a new league, to give those young men and young girls a hope because we don't think that every young man who has been growing up in Africa (ph) was picking up the game. Would he have a chance to go and excel in America or in Europe? Maybe 1 percent, maybe 001 would make it to the U.S. maybe to college, but not all of them will make it to the NBA. So that's why the NBA, our commissioner, Adam Silver, he has decided the moment have come to start a new league in a continent and I will give those men a prospect (ph) for them to develop, to stay home, to stay in their home country and their home continent, to be the star on their own people, and to take care of their family and their loved one. And I'm so happy with the direction that we're going.

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KINKADE: Well it's Hollywood's biggest night in Los Angeles, but people are talking about something other than who won, the controversy surrounding Will Smith and Chris Rock when we come back.

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KINKADE: Welcome back. The biggest night in Hollywood, the Academy Awards Show, had an unscripted fight that stunned the audience. It started when Chris Rock made a joke on stage about Jada Pinkett Smith's shaped head. Will Smith, Jada's husband, then took to the stage and punched Rock.

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CHRIS ROCK, ACTOR AND COMEDIAN: Uh oh. (inaudible)

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ROCK: Oh wow! Wow!

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KINKADE: Wow indeed. Well although it appeared to be a joke at first, Smith returned to recede and yelled at Rock, using some pretty foul language4. Viewers at home didn't hear the exchange as censors muted it. Will Smith did win the best actor award for his leading role in his performance of King Richard. During his acceptance speech he apologized for his role in the fight and ended it by saying that he hopes the Academy will welcome him back.

Well the Best Picture award went to "Coda", beating out films like "Belfast", "Drive My Car", and "Power of the Dog". In other awards, Ariana DeBose became the first openly-queer woman of color to win an Oscar for best supporting actress. She won for her portrayal of Anita in Steven Spielberg's remake of "West Side Story". Actor Kotsur is now the first deaf male actor to win an Academy Award. He's taking home the Best Supporting Actor trophy for his performance in the film "Coda".

Well meantime the war in Ukraine is a world away from the glamour of Hollywood, but it's not being ignored by the stars at this year's Oscars. CNN's Chloe Melas reports.

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CHLOE MELAS, CNN ENTERTAINMENT REPORTER: Hollywood paid tribute to Ukraine at the Academy Awards. Celebrities such as Jamie Lee Curtis, Tyler Perry, and Samuel L. Jackson wore blue and yellow ribbons to show their support. During the broadcast actress Mila Kunis, who was born in Ukraine, took a moment while introducing a Best Song of the Year nominee and performance to address the war. She said, quote, "Recent global events have left many of us feeling gutted, yet when you witness the strength and dignity of those facing such devastation it's impossible to not be moved by their resilience. One cannot help but be in awe of those who find strength to keep fighting through unimaginable darkness."

The Academy also posted a message of support on the screen that read in part, quote, "We'd like to have a moment of silence to show our support for the people of Ukraine currently facing invasion, conflict, and prejudice within their own borders." It also added, quote, "We ask you to support Ukraine in any way you are able. #standwithukraine." Chloe Melas, CNN, New York.

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KINKADE: Well thanks so much for spending part of your day with me. I'm Linda Kinkade. Stay with us. Our coverage from Lviv, Ukraine begins after a short break.

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