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U.S. Skeptical Russia is Scaling Back War on Ukraine; U.S: Russian Forces Repositioning, Not Withdrawing; At Least 12 Killed in Strikes on Mykolaiv Government Building; Civilians Flee Fighting Near Southern City of Mykolaiv; ; Ukrainian Lawmaker Staying in Kyiv to Defend City; Britain Detains Russian Super Yacht; Everyday Russians Feeling Impact of International Sanctions; Shanghai Tightens Restrictions Amid Lockdown. Aired 1-2a ET

Aired March 30, 2022 - 01:00   ET

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

(COMMERCIAL BREAK)

[01:00:27]

ANNOUNCER: This is CNN Breaking News.

HALA GORANI, CNN ANCHOR: Welcome to our viewers around the world and in the United States this hour. I'm Hala Gorani. We are reporting live from Lviv in Ukraine, where it is just past eight in the morning.

It hasn't even been a full day since Russia announced it would drastically reduce its military operations in Kyiv and Chernihiv. And instead, CNN crews on the ground and the Capitol are reporting the sound of major rocket and artillery fire. Take a look.

It certainly didn't sound like a drastic reduction on the ground. The Pentagon says a small number of Russian forces have moved away from Kyiv in the past few days, but that it's likely more of a repositioning than a withdrawal. The Ukrainian President Volodymyr Zelenskyy says he does not trust the Russian claims of a troop pullback.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, PRESIDENT OF UKRAINE (through translation): The signals that we hear from the negotiating platform can be called positive but these signals don't drown out the explosions of Russian bombs. The enemy is still in our territory. They carry on shelling in our cities. Mariupol's besieged, rocket and air attacks are not stopping.

(END VIDEO CLIP)

GORANI: Well, this next video we have to warn you is graphic. It's one of the first videos in weeks from the Kyiv suburb of Irpin. The city looks like an apocalyptic wasteland with buildings destroyed, dead bodies in cars, just left there and on the streets as well, just too dangerous to pull them to safe -- to pull them, I should say away for burial. Ukrainian troops claim they recaptured the town just a few days ago, after weeks of intense Russian attacks. Ukraine isn't the only country is skeptical of Russia's promise to scale back. The U.S. is not buying it either. CNN's Alex Marquardt reports from Washington.

(BEGIN VIDEOTAPE)

ALEX MARQUARDT, CNN SENIOR NATIONAL SECURITY CORRESPONDENT (voice- over): New signs that Russia's war in Ukraine may be entering a different phase. The Russian Ministry of Defense announced on Tuesday that it intends to drastically reduce hostilities on two fronts. Around the capital, Kyiv, and the northern city of Chernihiv, which has been battered by the Russian assault. It's an acknowledgment a top Ukrainian General said that Russia's effort to take Kyiv had failed. So it is focusing elsewhere. But the Biden administration is warning of more violence to come.

JOHN KIRBY, PENTAGON PRESS SECRETARY: Nobody should be fooling ourselves by the Kremlin's now recent claim that it will suddenly just reduce military attacks near Kyiv, or any reports that it's going to withdraw all its forces. Has there been some movement by some Russian units away from Kyiv? In the last day or so? Yeah, we think so, small numbers. But we believe that this is a repositioning, not a real withdraw, and that we all should be prepared to watch for a major offensive against other areas of Ukraine.

MARQUARDT: In Turkey, a new round of talks took place between Ukraine and Russia, which the Turkish foreign minister announced had made the most significant progress to date. The top American diplomat Secretary of State Tony Blinken expressed skepticism saying the U.S. has yet to see signs of real seriousness by Russia.

TONY BLINKEN, SECRETARY OF STATE: We focus on what they do, not on what they say. And what Russia is doing is the continued brutalization of Ukraine and its people. And that continues as we speak.

MARQUARDT: And advisor to Ukrainian President Volodymyr Zelenskyy said enough progress had been made for a possible head to head meeting between Zelenskyy and Russian President Vladimir Putin, which Zelenskyy has been asking for, and Putin has been rejecting.

But while officials talk the Russian bombardment continues, the Russian focus now according to Russian, Ukrainian and American officials, is Ukraine's south and east in the southern city of Mykolaiv and Administration Building was hit on Tuesday morning, the impact of the blast visibly shaking this camera.

At least 12 people were killed, emergency workers say and more than 30 wounded. The port city of Mariupol is a shell of its former self. The mayor says over 150,000 residents are still besieged without water, power or heat.

[01:05:04]

We had a beautiful life, just beautiful, this woman said. Now, we have nothing, just nothing. MARQUARDT (on camera): Ukraine says there can be no peace deal without a full Russian withdrawal from the country. And while Ukraine is now agreeing to remain neutral and not try to join NATO, they say that other countries now need to guarantee their security and possible future conflicts that neutrality, according to an aide to President Zelenskyy would be voted on by the Ukrainian people in a country wide referendum. Alex Marquardt, CNN, Washington.

(END VIDEOTAPE)

GORANI: I spoke with CNN Military Analysts and retired U.S. Air Force Colonel Cedric Leighton, I asked him if he thinks Russia is truly deescalating or simply rerepositioning its troops, here's part of our conversation.

(BEGIN VIDEO CLIP)

COL. CEDRIC LEIGHTON, CNN MILITARY ANALYST: Hala, I believe it is at the very most a, repositioning of the Russian forces, I don't think they're really deescalating. And I don't think that they are withdrawing. And it looks as if the Russians are not being true to their word in this case.

GORANI: So why say it?

LEIGHTON: Because I think it gives them the idea that it will be little diplomatic leverage for them, and it to make it look as if they are doing something that is related to perhaps the peaceful resolution of this crisis. But in essence, it gives them cover a lot. And that's the issue here. It gives them cover to do other things. And it also serves to deceive. And that I think, is really the difficult part of this. But it does work with not only their military doctrine, but also their diplomatic doctrine as well.

GORANI: But it doesn't -- they're not being very convincing. I mean, from the moment they said it practically, every Ukrainian official military commander said we just don't believe them. What do you think, ultimately, is the Russian military strategy at this point in the war?

LEIGHTON: So I think we have to divide between strategy and tactics. So their strategy really remains mostly unchanged, although people have, you know, made some different comments about that. But strategy is to take down the Ukrainian government, the tactics are that they will bide their time, they will take a longer time to do what they want to do. Their goals are to take Kyiv at some point a and, you know, take the government down. And perhaps the entire country, but they can't achieve that right now. And so they will buy their time. And they will move their forces to places where they can control the territory and the population.

In some cases, they will eliminate the population as much as they can, which is Mariupol, but they will then go ahead and make an accommodation, but that accommodation will be temporary, at least in their view. And they will wait for another opportunity to do what they've done, you know, since February 24. GORANI: But it's interesting that you say that because some analysts believe perhaps that Russia has come to the conclusion and has realized that it can't take Kyiv in any significant way, certainly can't hold it. And therefore potentially that a negotiation position would end up being while we can control Mariupol, which we've got it and completely leveled. Anyway, some parts of eastern Ukraine, we have that land bridge to Crimea and essentially cut the country in half, or you have the occupied and unoccupied zones. You think their objective is still the entirety of the country, including Kyiv?

LEIGHTON: I think so, remember, Hala, I think they have a calendar, whereas we have watches, so they have a much longer term view of how this is going to work. And, you know, this year, next year, if they can settle for a division of Ukraine, they'll settle for that. But a decade from now, 20 years from now, they will try to take the entire country. And that's the difference. They have a longer term plan. We tend to operate in increments and in short, with short term thinking. And that's the I think, a different perspective. So both sides may think they're winning at this point in time. But the Russian side is looking at this from a very long term perspective, I believe.

(END VIDEO CLIP)

GORANI: All right, different timelines there, Cedric Leighton joining us earlier. We're getting a better look at the destruction caused by Russian attacks in the city of Mariupol. These are some of the first images we're getting from the center of the city, not released through Russian state media. Their satellite images they show what used to be a neighborhood with homes and two separate apartment complexes. The homes are completely destroyed. Road and you can see the residential streets filled with debris. And here's a the exact same spot near the city of -- the center of the city before and after the Russian siege. It gives you a really good idea of how much these this attack and this invasion has ravaged residential areas in Mariupol.

[23:10:20]

And to the west near the southern city of Mykolaiv, the fighting has become too much to bear for many residents. CNN's Ben Wedeman is on the ground.

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BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): The blasted burnt out hoax of Russia's might lie on a road outside Mykolaiv or rumbles in the distance. Lieutenant Colonel Yaroslav Chepurny doubts peace or even a pause is at hand.

Russia, he says put such a huge effort into invading Ukrainian territory. It's hard to imagine it will leave so easily.

(On camera): As fighting raged on the road, just a few minutes' drive from here were civilians, many of them huddling in their cellars for protection, scared of the fighting, but terrified of the danger if they tried to flee. (Voice-over): This house in the nearby village of Shevchenko took a direct hit, bombardment is less frequent now. It's just common enough for 72 year old, Natalia, to pack up and go.

It's impossible to tolerate this anymore, she says. I'm already an old woman.

A neighbor will drive her to nearby Mykolaiv. Shrapnel riddled his car and shattered the back window.

I'm not afraid to die says, Natalia. But I'm just not ready. I haven't gone to confession yet.

In an adjacent town, Lubya shows me the potato cellar she hidden for days. It's cold here, she says. There was no electricity for two weeks. As fate would have it, she did well to stay down there. One day a rocket landed in her backyard.

Tongue and cheek, she told us the Russians left a gift for her a gift that keeps on ticking.

(On camera): All right, we have to leave this spot because this rocket has not exploded.

(Voice-over): Many of the villages near the front have been largely abandoned. Only the most stubborn stay behind. Ben Wedeman, CNN, outside Mykolaiv.

(END VIDEOTAPE)

GORANI: Well, those who've escaped appear to be the lucky ones. The relentless Russian attacks have already driven millions of people out of the country. We'll have the latest on this refugee crisis next.

Then, how much help is the U.S. providing to Ukraine's military really? We're getting mixed messages out of Washington about what is happening in Poland. And we'll be right back.

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[01:17:21]

GORANI: Well, the latest round of talks between Russia and Ukraine are over but an adviser to Ukraine's president says negotiators will keep discussing a humanitarian ceasefire because safe corridors are obviously desperately needed in many parts of the country.

According to the U.N., Russia's relentless bombardment has forced more than 10 million people in Ukraine from their homes, an estimated six and a half internally, and nearly 4 million Ukrainians have fled the country. That is pretty basically a quarter of the population. Poland has taken in the lion's share of those who've left, so 2.3 million people.

Meanwhile, sources tell CNN that U.S. troops stationed in Poland have been instructing Ukrainian forces on how to use weapons shipped into Ukraine by Western power -- powers. The U.S. president stated on Monday that Americans were, "helping train the Ukrainian troops in Poland." But then on Tuesday came word that the U.S. is not doing any formal or active training. The Pentagon use the watered down term interactions to describe whatever it is that's happening.

(BEGIN VIDEO CLIP)

KIRBY: There is, you know, there's some liaising going on as Ukrainians go into Poland, for instance. And they are -- we're transposing shipments of material to them. And so there's some there's some general liaising going on in that regard, and that's what the President was referring to.

(END VIDEO CLIP)

GORANI: General liaising. I want to bring in Stanley Bill, he's an associate professor in Polish studies at Cambridge University. Thanks, sir, for being with us.

Poland is in this really unique position. I mean, it's the country to the west of Ukraine. It's a NATO member, it pushed the idea of sending more fighter jets to Ukraine, that idea was, you know, not taken on board by the U.S. in a positive way. What role is Poland playing? How might this change its position in the world, this war against this country?

STANLEY BILL, ASSOC. PROFESSOR IN POLISH STUDIES, CAMBRIDGE UNIVERSITY: Poland is certainly seeking to play a leadership role, both within the European Union and NATO. It sees itself as a kind of advocate for Ukraine, its neighbor. There's a very strong sense among holes, but also among the political class of solidarity with Ukraine, a sense of an understanding of what Ukraine is facing in the context of what policy as a history of Russian imperialism that extends into their own country in the past as well.

So they really feel that there's a historical role to play. There are perhaps some political benefits that can be derived from that, of course, as always when we're talking about the way that politicians are responding. But I think there is a deep sense of conviction among Poles more broadly, but also among the political class in Poland.

[01:20:16]

GORANI: What's interesting is that the President of Poland had a very tight relationship with Donald Trump when he was U.S. president, a U.S. president that denigrated multilateral organizations like NATO. Is Poland, coming to the realization now that perhaps these international organizations and Western cooperation aren't such a bad thing, after all, when Russia invaded its neighbor to the east?

BILL: It is a very interesting paradox. And it's certainly the case that Poland and its illiberal regime benefited from Donald Trump being in power, which meant that there wasn't pressure coming from the United States, at a very high level with respect to what the Polish government was doing with rule of law, eroding the independence of the judiciary, and other moves that were widely criticized in Europe, but also by non-government organizations in different places.

But on the other hand, the Polish government would view this particular period as one in which Donald Trump was the president, and therefore, they were seeking to pursue their relations with the United States, which they certainly view as their most important international relationship through Trump. So that would be an argument that they would make. Nevertheless, it's certainly the case that Andrzej Duda, the Polish President was one of the last international leaders to congratulate Joe Biden on his victory in the presidential elections, waiting a couple of months, in fact.

And so there is certainly a sense and this criticism appears in Poland as well, that the current Polish government was aligning itself with illiberal forces with forces, as you said, that have been eroding in various ways, the multilateral ties, the relationships that are central to Poland's long term security, and NATO above all, and of course, Trump's ambivalent attitude to NATO is at the center of that.

So it does seem to be a little bit of a turn. On the other hand, that turn when it comes to the Polish President did not happen yesterday a little bit earlier. So towards the end of last year, and earlier this year, he has been putting out signals even against his own government by vetoing for example, laws that the government was trying to pass that would have restricted the potential of U.S. company in particular, to own an important private television station in Poland, due to veto that law. And by doing so he was sending a signal to U.S. partners that he wanted to -- to Biden and particularly, he wanted to reestablish good relations there. And that was something that wasn't greeted enthusiastically by his own party, but is in government.

GORANI: Such an interesting development, and the repercussions of this invasion obviously felt throughout the world as well as in Poland politically. What about the Polish population itself? Where -- how is it, you know, reacting to this naked aggression by Russia on its neighbor? Is there any concern there from them?

BILL: Well, first of all, there's been an outpouring of solidarity, as we've seen with Ukrainian refugees. And with civil society mobilizing on an enormous scale to support Ukrainian refugees coming into the country, as you said, it's getting close to two and a half million that have crossed the border. I should say, it's not clear that 2.3 million that you mentioned before, actually in Poland, because there's a certain number of those, in fact, probably quite a high number, according to some estimates that have already crossed other borders into other European countries.

There's certainly a very large number of Ukrainian refugees in Poland, many of them staying in the homes of Poles of ordinary Poles who are taking Ukrainian people into their homes and supporting them there. So that's extremely significant. And that's something that Poles feel very strongly about.

But to return to your question, and I think there is a degree of fear and anxiety. I think Poles do have a general sense of confidence in the NATO alliance and in Article Five of the NATO Treaty and in the security guarantees that provides for Poland as a member of NATO. But I think there is also a historically conditioned concern about what could happen and about the possibility of conflict spilling over the border in ways that might be unpredictable, and therefore that Poland itself could be threatened.

GORANI: Stanley Bill, thanks so much for joining us, such a great analysis and an interesting perspective there on the role Poland is playing and all of this.

Still to come, CNN's Christiane Amanpour introduces us to a Ukrainian lawmaker who is armed and ready to defend her country.

[01:25:00]

(BEGIN VIDEO CLIP)

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL ANCHOR: Did you ever imagine in your life that as an MP in 2022 in Ukraine you'd be forced to carry a gun around?

UNIDENTIFIED FEMALE: No, never.

(END VIDEO CLIP)

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GORANI: Well, the U.N. says the war in Ukraine shows no signs of easing and that it's taking enormous toll on civilians. We are able to obviously witness that with our firsthand reporting here.

Humanitarian efforts are scaling up but serious security risks are hampering efforts. Many routes are disrupted and convoys have to stop because of shelling, landmines and fighting. As of Sunday, the U.N. says more than 1000 people have died including 99 children.

(BEGIN VIDEO CLIP)

JOYCE MSUYA, U.N. HUMANITARIAN AFFAIRS DEP. EMERGENCY COORDINATOR: We know these numbers are conservative and the tolls are far greater. Cities like Mariupol, Kharkiv, Chernihiv and many others bustling and full of life just one month ago, are encircled, bombarded and blockaded.

[01:29:47]

People in these towns lack food, water, medicine, electricity and heating. They are trapped, desperate, afraid. In some neighborhoods, it is not even safe to bury the dead.

(END VIDEO CLIP)

GORANI: While the death toll rises and the humanitarian crisis deepens, we are still seeing the indomitable spirit of so many Ukrainians shied through amid this devastating war.

CNN met up with a member of Ukrainian parliament, who is armed and ready to defend her country. Christiane Amanpour has her story. (BEGIN VIDEOTAPE)

CHRISTIAN AMANPOUR, CNN CHIEF INTERNATIONAL ANCHOR: Day 34 of war and the sounds are all around

LESIA VASYLENKO, UKRAINIAN MP: That sort of disturbs your day all the time, but you learn to live with it.

AMANPOUR: Ukrainian MP Lesia Vasylenko says that after a month at this, she like her president and country folk, believe the Russians will never take the city though fighting does continue in the suburbs. She wanted to meet here at Maidan Square where Ukrainians stood up for their rights in 2014 and brought down Putin's wrath and hi revenge.

Given his battlefield setbacks though, I asked whether his shifting demands make a diplomatic compromise easier for Ukraine to accept. Now there is word, we don't know whether it's going to bear fruit, that they might allow Ukraine to join E.U. as long as you renounce NATO. Is that a compromise that Ukraine would accept?

VASYLENKO: All of this started 34 days ago because one country cannot declare itself more sovereign than another country and Russia tried to do the stat. We cannot go for that compromise because that compromise to Putin would also mean a compromise of the general framework of defense and security of the world. Giving in to dictators means incentivizing them.

AMANPOUR: Ukraine's dramatic resistance surprised the whole world, including Vladimir Putin.

VASYLENKO: Three days they gave us, right. Putin thought he would be here in a matter of hours.

We are doing this for our very survival. And when the survival instinct kicks in, people can do amazing things, people can become super heroes. And this is what you are witnessing in Ukraine.

AMANPOUR: Lesia is armed with her guns -- the AK-47 is at home today. But she shows me her pistol held close to her heart.

Lesia, when we spoke in the first week of the war before I got here, you said I've got my machine gun. And you've tweeted that I've also have my manicures.

Your resistance takes many, many forms. And you are actually carrying your pistol right now.

VASYLENKO: I am. I am. I do have my (INAUDIBLE) with me. I carry that with me all the time.

AMANPOUR: And did you ever imagine in your life that as an MP in 2022 in Ukraine, you would be forced to carry a gun around?

VASYLENKO: No, never. Never. I'm actually very much anti gun. And this can cause a lot of problems for me because in order to recharge it, you have to sort of like do this thing. And with the nails -- I have very nice, beautiful long nails -- it was impossible to do so. So they had to all come off.

AMANPOUR: And just so people are clear, the idea of beauty, self maintenance, is also resistance.

VASYLENKO: Yes, all jokes aside. It is an important element for all women who are fighting alongside the menfolk here. The women still want to be beautiful. they still want to have dignity as women -- and to be human.

AMANPOUR: He basically said -- Putin that Ukraine doesn't exist as a nation. You don't exist as a people.

VASYLENKO: And we say to him, life goes on. We carry on living. Your war, your fighting against us is in the background now. And we will go on fighting it for as long as we have to. But we will go on living at the same time.

AMANPOUR: She is still an MP. Parliament is still passing laws. And since an army marches on its stomach, this too is their fight, their war effort.

And so the ordinary becomes the extraordinary. Peeling carrots as if they were stacking up bullets. This trendy brunch and bar has turned into a wartime canteen, chopping onions in a frenzy of efficiency and purpose.

Do you feel you will win?

UNIDENTIFIED MALE: Of course, we have to.

AMANPOUR: You said you must destroy the Russian army?

UNIDENTIFIED MALE: Yes.

AMANPOUR: So they help turn out 600 meals a day and counting for the army and Territorial Defense, the hospitals and shelters.

Outside, Lesia shows me the pictures of her three young children, who she's had to send away for their safety.

[01:34:57]

VASYLENKO: This is my baby from this morning. This is my youngest.

AMANPOUR: Wow. And she is how old?

VASYLENKO: She's going to be ten months in just a couple of days.

AMANPOUR: Wow. That must be painful to be without her?

VASYLENKO: It is. And she is sort of looking at you like, really mommy? Really, you're going to be away for me?

AMANPOUR: Staying on the front lines with the struggle comes at a huge personal cost but Lesia has no doubts. VASYLENKO: I am where I have to be. I mean things happen for a reason. I am a firm believer in that. There's a reason why I was elected in 2019. We have a task. We have a duty. And we will complete it and then we will see where life takes us.

AMANPOUR: Christiane Amanpour, CNN -- Kyiv.

(END VIDEOTAPE)

GORANI: I will have more from Ukraine next hour.

First let's bring in Lynda Kinkade in Atlanta, Lynda.

LYNDA KINKADE, CNN ANCHOR: Thanks so much Hala. Keep up the great work there in Lviv. And we will tune in next hour.

Still ahead on CNN, fighting for the crowds for a simple bag of sugar. A look at how every day Russians are faring under this crippling international sanctions.

Plus authorities in the U.K. have made their first seizure of a super yacht in British waters under Russian sanctions. We will have a report from London.

[01:36:09]

(COMMERCIAL BREAK)

KINKADE: Welcome back.

Several European countries including the Netherlands, Belgium, Ireland, are all expelling dozens of Russian diplomats. Belgium and the Netherlands accused those being asked to leave of espionage.

Several of the Russian embassies have condemned the moves saying it will not go unanswered. Tuesday's announcement follows similar moves by Poland as well as some Baltic states earlier this month.

British authorities have seized a super yacht they say belongs to an unnamed Russian businessman with ties to Vladimir Putin.

CNN's David McKenzie filed this report from London.

(BEGIN VIDEOTAPE)

DAVID MCKENZIE, CNN CORRESPONDENT: It's an extraordinary vessel, nearly 200 feet, and costing almost $50 million U.S.. It has an infinity wine cellar, and a freshwater pool. And this is the kind of wealth, the luxury of those allegedly associated with Vladimir Putin.

But this vessel, this superyacht, is not going anywhere soon.

So this yacht is only a few months old, it was delivered to London with much fanfare from a firm in the Netherlands.

Earlier today, officers of the National Crime Agency were on board, effectively impounding the vessel. These yachts have a very complicated ownership structure. Often, it is registered in the Caribbean they says, with a flag from Malta.

And throughout the world, there is now a crackdown to target these boats, these yachts, allegedly linked to Vladimir Putin's oligarchs.

I'm David from CNN, are you able to say anything?

UNIDENTIFIED MALE: No comment?

MCKENZIE: No comment.

UNIDENTIFIED MALE: No comment. There's still crewmembers on board, but they would not saying thing to

us. The British government has been criticize in recent months for not being harsh enough on oligarchs allegedly linked to Vladimir Putin, tracked it down. Now know the connection, the shipment is going anywhere for the time being and that's because we take -- what Putin is doing in Ukraine, incredibly serious.

And people who have benefited from his regime, cannot benefit from sailing around London ships like this.

Whether it has any impact on the ongoing conflict really it up for debate. But it really is a powerful signal that this super yacht is now stuck at this wharf.

David McKenzie, CNN -- London.

(END VIDEOTAPE)

KINKADE: Well, the oligarchs may not be suffering from the loss of luxuries, every day Russians are starting to feel the squeeze of international sanctions from a war many don't even support.

CNN's Anna Stewart reports.

(BEGIN VIDEOTAPE)

ANNA STEWART, CNN CORRESPONDENT: People are fighting for sugar. The words of the women filming this video in a Moscow supermarket. The shop worker asking people to stay calm and to stop fighting.

In another video posted to Telegram, you can hear shouting. Sugar just arrived doesn't even make it onto the shelf before shoppers grab it.

Inflation has hit more than 14 percent in Russia and economist Anders Aslund expects it to reach 50 percent by the end of the year.

ANDERS ASLUND, ECONOMIST: When the sanctions hit, everybody wanted to cash their rubles from the bank account as fast as possible and then either get hard currency or buy the goods before the prices had increased.

STEWART: According to official government statistics in Russia, certain goods have seen huge price increases. Compared to last year, sugar is 37 percent more expensive. The prices for bananas and tomatoes are up by around 50 percent and rises albeit smaller across a whole range of household staples.

What you see here, empty the shelves, is largely the result of panic buying. And some supermarkets have placed limits on how much customers can buy of certain products, like buckwheat, rice, diapers and chicken.

There is also the very real risk that some products may become harder to get. Many retailers have closed their doors, as western companies exit a country waging an illegal war.

The world's biggest shipping companies will no longer carry non- essential cargo. And western countries have also banned selling certain components to Russia.

[01:44:57]

ASLUND: Probably about half of Russia's foreign trade has ceased. And this means that companies can't get parts and the Russian economy is basically integrated with the world economy.

My guess is that the whole automotive industry will just come to a stop very soon because that is an area where you have many of those parts are imported.

STEWART: A new car is already 20 percent more expensive compared to a year ago. The ruble has crashed in value, making imports more expensive. And sanctions have been in place for little over a month.

How long can Russia afford to continue on in this vein?

ASLUND: You can run down an economy extremely badly as we have seen in Venezuela, (INAUDIBLE) the question is when the political forces say no, this is enough.

STEWART: Anna Stewart, CNN -- London.

(END VIDEOTAPE)

KINKADE: Well, still ahead we'll have a report from Shanghai where 25 million people are coping with a state ordered lockdown and mandatory COVID testing.

[01:46:07]

(COMMERCIAL BREAK)

KINKADE: Israeli police say that five people were killed during a shooting in a city near Tel Aviv on Tuesday, the third attack in Israel within a week.

Authorities say at least one attacker used an assault rifle against civilians in several locations before being killed by police. An Israeli police officer was among those killed in the attack. The shooting came just today after a landmark summit between Israel, the U.S. And four Arab countries.

At least 11 people have died in the three attacks over the past week. ISIS had claimed responsibility for two earlier attacks.

The omicron sub variant, BA.2, has now become the dominant strain of COVID-19in the U.S. accounting for more than 50 percent of all cases. That's according to the CDC. This comes as the FDA expands the emergency use authorization of the Pfizer and Moderna vaccines, which allows adults age 50 and older to get a second booster shot which means four shots overall.

Those eligible are able to get that shot four months after their first booster shot. Something a counsel to the U.S. president says everyone should take advantage of.

(BEGIN VIDEO CLIP)

JEFF ZIENTS, COUNSELOR TO PRESIDENT BIDEN: The boosters work. And Americans should get their booster. There is waning across time. So it's important that people take advantage of the extra protection of a booster shot.

(END VIDEO CLIP)

KINKADE: In China, Shanghai is reportedly nearly 6,000 new COVID infections, accounting for 70 percent of all new cases across the country. The outbreak is fueling panic in China's financial hub and authorities are clamping down with even tighter lockdown restrictions.

CNN's David Culver has more from Shanghai. --

(BEGIN VIDEOTAPE)

DAVID CULVER, CNN CORRESPONDENT: Emotions in Shanghai are at a breaking point. Chinese social media showing people shoulder to shoulder, pushing to get vegetables. Panicked shoppers stocking up ahead of an unprecedented citywide lockdown.

The plan is to shut Shanghai down in two phases. First, the eastern half from the Huang Pu (ph) River, then the west. In all, some 25 million people confined to their homes.

Already, desperate stories emerging. This woman pleading for permission to leave her compound. Saying that her husband needs his cancer treatment. This latest omicron fueled surge in cases is China's worst outbreak since Wuhan two years ago.

And yet for some living in the country's international financial hub, Shanghai, this is unlike anything experienced here before. Videos circulated on social media show hundreds of COVID patients filling up crowded hospitals.

So as to keep in line with President Xi Jinping zero COVID policy, Shanghai has turned stadiums and exhibition centers into centralized makeshift hospitals. This video is from the Shanghai Expo center. Said to hold more than 6,000 patients. On Twitter, expat, Emma Leaning (ph) chronicling here experience, testing positive with mild symptoms. Taken to the expo center. Given just a bucket and rag to wash up every day.

Just about every day outside you hear a blaring loudspeaker with a new announcement. On this cold rainy day, another mandatory COVID test.

My neighbors and I hurried out to the nearest government testing site.

They only let us out of the gate just for the test, and then they head back in. Once done, your neighborhood gate is locked back up.

Stores and restaurants that have just one confirmed case pass through, are treated like a crime scene, roped off and disinfected.

Since confirming its first omicron case in mid December, mainland China's average new daily case count has surged from double digits to more than 5,000. There are more than 65,000 active cases and counting.

The virus has spread to 29 provinces and regions. The lockdowns and mass testing bring light to a near halt in many places, and could have global economic impacts.

China's (INAUDIBLE) province, an industrial hub, along with the steelmaking center, Tianjin, lockdown. China's Silicon Valley, Shenzhen, is only just reopening after putting 17 million residents that are locked down for a week.

Back in Shanghai, this latest lockdown is forcing Tesla's giga factory to hit the brakes on production and it's already causing Shanghai Disneyland to shut its gates.

[01:54:53]

CULVER: This bustling metropolis, powering down, to the outside world the scenes are apocalyptic. China, once again, trying to prove it can contain the invisible villain.

David Culver, CNN -- Shanghai.

(END VIDEOTAPE)

KINKADE: Well, before we go, a moment of unity. Hundreds of kilometers above earth. Handshakes and hugs exchange between Russians and Americans aboard the International Space Station on Tuesday. One of the Russian cosmonauts who is now headed home reflected on working together even amid the war in Ukraine.

(BEGIN VIDEO CLIP)

ANTON SHKAPLEROV, RUSSIAN COSMONAUT: People have problem on earth; on orbit, we are like -- we are not like -- we are one crew. And I think ISS is like symbol of friendship, like my space brothers, and space sister.

(END VIDEO CLIP) KINKADE: Well, the Russian and American crew will arrive on earth in the coming hours.

That does it for me here in Atlanta. I'm Lynda Kinkade.

Our breaking news coverage continues with Hala Gorani live in Lviv, next.

You're watching CNN. Stay with us.

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