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Russian Forces Shell Cities across Ukraine in Preparation for Possible Large-Scale Operation in Eastern Ukraine; Evidence of Russian Forces' Atrocities in Ukraine Continue to Come to Light; U.S. Provides New Shipment of Equipment and Weapons to Ukrainian Forces to Combat Russian Invasion; Ukrainian President Zelenskyy Warns Russia May Use Tactical Nuclear Weapons against Ukraine; Foundation Rescues Pets and Animals in War-Torn Ukraine; Home Prices and Home Building Materials Increasing Due to Inflation in U.S.; Family Members of Russia President Vladimir Putin and His Inner Circle Live Lives of Luxury in Western Countries. Aired 2-3p ET.

Aired April 16, 2022 - 14:00   ET

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

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[14:00:38]

PAULA REID, CNN ANCHOR: You are live in the CNN Newsroom. I'm Paula Reid in Washington in for Jim Acosta. I want to welcome our viewers here in the United States and around the world.

And we begin with a dangerous new phase in the war in Ukraine. Russian attacks have intensified in Ukraine's east as they prepare for a major round offensive. In the northeastern city of Kharkiv, two civilians are dead and 18 injured in a cruise missile strike that hit residential buildings and shops. In the eastern region, extensive damage to civilian areas. A CNN team witnessed an ongoing attack on a village market.

In another nearby village, CNN cameras also caught the aftermath of Russian strikes that hit a fuel depot. A senior official in that region is urging the 70,000 remaining residents to evacuate now as shelling has already left some towns destroyed beyond recognition. Attacks in southern Ukraine also becoming increasingly hostile as Russia grapples with sinking morale and a sinking flagship.

U.S. military officials believe two Ukrainian missiles sent the warship Moskva to the bottom of the Black Sea. Ukrainian officials say Russia is retaliating today by shelling Mykolaiv and the Kherson regions.

The biggest wartime loss of a naval ship in 40 years comes at a time when U.S. officials are warning Vladimir Putin is angry over Russia's military failures and his behavior is increasingly unpredictable. In an exclusive interview with CNN's Jake Tapper, Ukrainian President Zelenskyy says the world should prepare for the possibility that Putin could use a nuclear weapon.

(BEGIN VIDEO CLIP) VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: I think all of the world, all the countries have to be worried, because you know that it can be not real information, but it can be the truth, because when they begin to speak about one or another battle involving enemies or nuclear weapons or some chemical issues, chemical weapons, they should do it -- they could do it.

(END VIDEO CLIP)

REID: Putin's forces have left evidence of a cruelty that knows no bounds. More than 900 bodies of civilians have been discovered since the armies have withdrawn from areas around the capital according to the Kyiv regional police. Many of them shows signs of torture, rape, and brutal execution. Kyiv is not out of the woods yet. The mayor saying at least one person was killed and others are injured after a rocket strike hit the outskirts this morning.

CNN's Ed Lavandera is in Ukraine's southern port city of Odessa, and Arlette Saenz is at the White House. Ed, first to you. Tell us about the fallout Ukraine could be facing after sinking Russia's prized flagship.

ED LAVANDERA, CNN SENIOR NATIONAL CORRESPONDENT: Yes, there are a lot of people around here who think that this renewed attacks, especially here in the southern region where we're at, has a lot to do with the sinking of that warship. We have seen in the city of Mykolaiv, which is just east of where we are, and just beyond that is the city of Kherson, that is essentially the front line, that's a Russian occupied city, and there has been shelling going back and forth between those cities over the last few days.

And we've also seen a round of intense, indiscriminate rocket fire into the city of Mykolaiv over the last few days as well. We were there yesterday when some of that shelling happened. Five people were killed, 15 others injured. And I can tell you that it was indiscriminate. It was at various different locations, mostly civilian targets in that city.

And this an area that has seen an escalation of attacks here in the last few days, and we're also seeing a number of refugees trying to escape some of those Russian occupied areas. We have seen long convoys of cars trying to get through military checkpoints into safer parts of Ukraine, and that has been going on for the last several days for sure, Paula.

REID: And the mayor of Mykolaiv says Russian troops attacked a kindergarten this morning. What is our latest reporting on that?

[14:05:00]

LAVANDERA: Well, yes, the attacks have continued today. The mayor of that city sharing images of a destroyed kindergarten building, also where one person was injured. There's also shots of a playground that was hit by some of these attacks. And the reason why it seems so indiscriminate and random is that we saw yesterday evidence of these cluster munition, which essentially one rocket flies in and drops off several smaller bomblets, and they go off and can inflict a great deal of carnage and damage.

That's how several of the people were killed in yesterday's attack. And so it is really hard to control where these little bombs fall. I hesitate to almost call them little. They can do extensive damage to human life. But it is indiscriminate. They can just fall out wherever. It's not like it's pinpoint accuracy in this type of weaponry.

And many people believe that this is part of the Russia's tactic here in various parts of the country to create this chaos in this indiscriminate nature of bombing and attacking.

REID: And Arlette, President Biden signed off on heavy duty military aid for Ukraine just as Ukraine faces this major battle in the east against Russia. It's expected to arrive today. So what is your latest reporting about the White House and this move that for such a long time now, many weeks, they had been resistant to make?

ARLETTE SAENZ, CNN WHITE HOUSE CORRESPONDENT: Well, Paula, the first shipment of that newly approved $800 million worth security assistance is expected to arrive in Ukraine today. This really represents much more sophisticated and heavy-duty weaponry that the U.S. is supplying to Ukraine. That includes helicopters, howitzer cannons, as well as more Switchblade drones, and also radars that are capable of detecting incoming fire.

Now, the Pentagon would not provide a manifest of what exactly was being sent today. But it's expected that those howitzer cannons and the relevant ammunition, as well as those radars, are expected to be parts of the first shipments. These types of equipment have been requested by Ukraine.

You will note that this does not include fighter jets, something that Ukrainian President Volodymyr Zelenskyy has really been pressing for from the U.S. and allies in recent weeks. But it also comes as the Ukrainians are starting to see this shifting battlefield with Russia really starting to focus on fighting in the eastern part of the country. The U.S. is saying that that is much different terrain that requires different types of equipment.

And there had been some administration officials previously who were concerned that this type of heavy-duty equipment could pose a greater escalation risk, but they are looking the dynamics on the ground and what exactly the Ukrainians need at the moment and trying to provide that to them.

Now, this comes as Russia is protesting the U.S. supplying Ukraine with more weapons. Sources have told CNN that Russia sent a diplomatic note to the State Department where they warned there would be, quote, unpredictable consequences if the U.S. moves forward with supplying more military equipment to Ukraine.

Now, so far the U.S. remains undeterred by that warning. But at the same time, you also had Ukrainian President Zelenskyy in that interview with our colleague Jake Tapper warning that the U.S. should be on high alert for the possibility of Russia using nuclear weapons. Now, the U.S. has warned that Russian President Vladimir Putin could resort to using nuclear weapons if he feels backed into a corner.

But a bit earlier this week, CIA Director William Burns was saying that the U.S. is watching this very intensely while also emphasizing that the U.S. has not seen signs yet of Russia mobilizing towards using nuclear weapons.

But it is clear that both the U.S. and Ukraine are trying to adapt to this constantly changing battlefield in Ukraine as Russia continues this war, and the U.S. trying to help provide that military assistance for the Ukrainians to fight.

REID: Arlette, thank you so much to you and for your great reporting. We appreciate it.

Now let's bring in CNN military analyst, retired Air Force Colonel Cedric Leighton and CNN national security analyst, a former CIA chief of Russian operations, Steve Hall. Colonel, for the first time since the invasion, Ukraine is getting the weapons systems that Zelenskyy has been begging for at a really critical time. So is this a game- changer for Ukraine?

COL. CEDRIC LEIGHTON (RET), CNN MILITARY ANALYST: It could be, Paula. They have done a great job defending Kyiv and defending what they have in the east. They've also kept the Russians out of the Odessa area. So the Ukrainian military has to be lauded for doing lot with a little.

Now, when it comes to what is coming up next, that is going to be interesting, because, as Ed mentioned in his reporting, the whole region there has a bit of a different topography, and that could have an impact on the types of weapons that are used and that can be effectively used by the Ukrainians against the Russians. It is going to be a different battle scene.

[14:10:00]

And these types of weapons that are being talked about, such as the helicopters, the Switchblade drones, the howitzers, those can be very useful in this kind of an environment. The question now becomes, can the Ukrainians quickly employ them in a way that really works for them and that keeps the Russians away from critical areas in the east as well as in the central part of the country.

REID: And it is notable that we're seeing Russia complaining about these weapons system. Is that a sign that yes, they're working, this is going to be effective?

LEIGHTON: Oh, they are scared of them. Let's be honest, Paula, these weapons are very dangerous for the Russian movements in the east. Those troops aren't prepared for a force-on-force kind of fight. And if that force-on-force fight happens, like it would if these weapons are employed effectively, then it's going to be a very big issue for the Russians to deal with, and it is going to be tough, I think, in the next few weeks.

REID: And Steve, I want to ask you, weeks ago Russia warned that convoys carrying military aid into Ukraine would be legitimate targets. As far as we know, Russia hasn't attacked any yet, but do you think that's about to change here?

STEVE HALL, CNN NATIONAL SECURITY ANALYST: Frankly, Paula, I'm surprised that they haven't actually tried to hit these convoys to date. It could be that it's difficult for them to locate them. There is some information reporting out there that the Russians are having some problems with their tactical collection capability, and also from their overhead from their satellites.

So it might be hard for them to pinpoint them. But once these weapons, which Cedric just pointed out, are definitely going to do damage against the Russians, when they see them coming in, they're going to try to hit them.

Now, it's going to be really interesting if somebody makes a mistake and they try to hit one of these convoys that has not yet made it into Ukraine, say coming out of one of the border states around it. Does that then constitute an attack on a NATO country, or is that just written off as a mistake? So we'll have to see all that develop. But yes, there is no doubt that they want to try to hit these weapons that are going to be very useful against them.

REID: And Colonel, are you surprised that Ukraine was apparently able to sink a Russian warship? Do you think this will embolden them to carry out similar attacks like this?

LEIGHTON: I think it will, actually, Paula. And was I surprised? I was surprised they hit that specific ship and did it so well. The Moskva is -- was a command and control ship. I have to get used to saying it in the past. It was a clear leading element of the Black Sea fleet. And the fact that it is no longer seaworthy and has reached the bottom of the Black Sea is a very, very, big deal.

And the Ukrainians can be very proud of that. Of course, that means the Russians are going to be even more nervous about what is going on with the Ukrainian capabilities, and that's going to have an impact on how the Russians behave toward the Ukrainians, and also what they are going to do next in terms of tactics, and frankly, procedures that they will use against them.

REID: A real blow to Russia.

And Steve, the west has been focused on sanctions, using them to pressure Putin, but there's other pressure that he's facing -- these battlefield humiliations like the warship sinking. Do you think that humiliations like that really have an impact to the same extent as, for example, economic sanctions? And if those pile up, will that ratchet up the domestic pressure on Putin?

HALL: So, I think yes, yes, and yes. Certainly, when you have the sort of battlefield problems that the Russians are having, whether it's the destruction and sinking of the Moskva, or whether or not it's yet another Russian general, which there's now reporting out, that's been killed in Ukraine, or whether it's these sanctions. These are all pressures on Putin.

Now, I'm not sure that there's a lot of Russians that are going to take to the streets, and even if they did, Putin is well-placed and has shown no compunction whatsoever about repressing them violently when he has to do it. So unless we start getting hundreds of thousands of people on the streets in Russia protesting the war and Putin's government, then I don't think it's going to be much of a problem for him.

But I do think that sanctions and the continued humiliation of Russia, if that goes on over a long period, is going to start a lot of Putin's inner circle asking themselves, what has this guy gotten us into, and how are we going to get out of it with any semblance of what Russia looked like before we started the war? So that's going to be a significant pressure on him. And we want to see how all that breaks down.

REID: It will be really interesting to see how that plays out.

Now, Colonel, President Zelenskyy, he has spoken about the real threat, nuclear threat, from Russia, an incredibly scary prospect for people all over the globe, but specifically when it comes to Ukraine. Is there anything that they should be doing to prepare to defend against that kind of threat?

LEIGHTON: It is really difficult, Paula, to defend against a threat like a tactical nuke. And we really don't have adequate weapons systems that go after it. The only thing you can do is to have the intelligence to preempt those kinds of weapons from even being launched, and that's a really tall order, as I'm sure Steve would agree.

[14:15:01]

Those are the kinds of things that they need to look at. The intelligence is going to be key to this. And it is also going to be something where they have to, from a civil defense perspective, prepare their population for the possibility of a tactical nuclear strike. It could mean that there would be an impact also on NATO countries, and that is the radiation fallout. So those are the kinds of things that the Ukrainians, and NATO, frankly, will have to look at.

REID: And Steve, I want to say the same issue to you. If Putin gets backed into a corner, desperate for a May 9th victory -- we know that date is significant to Russia -- what you think he will unleash? How do you see this potentially playing out?

HALL: I think it's pretty -- excuse me -- pretty unlikely that we're going to have an exchange of the intercontinental ballistic missiles. We're not going to have a strategic exchange of nuclear weapons at this point. I think much more likely, although still in the unlikely category for me, is the use of tactical nuclear weapons, low yield nuclear weapons, on the battlefield in Ukraine.

I think the key here is that we can't -- "we" meaning the United States and the west, cannot be cowed by this. We have seen nuclear saber-rattling from Putin since the beginning of the war, really. And we have to realize that we can't self-edit because of that. That said, the administration, the Biden administration is correct in taking it seriously, because even if you calculate or assess that they're probably not going to use them, you have got to be is one percent wrong, and it's catastrophic.

So I think the administration is doing the right thing by acting carefully, supplying the Ukrainians with what they need to fight the Russians, and yet also holding back a bit, not putting boots on the ground, and trying to trigger an increasingly unpredictable Putin to actions that we can't entirely how they're going to end up.

REID: It's a great point. Colonel Leighton and Steve Hall, thank you so much for your insights.

And our Jake Tapper has an exclusive interview with the Ukrainian president on the state of the war and Ukraine's fight to win. Make sure to tune in. STATE OF THE UNION is live tomorrow from Lviv at 9:00 a.m.

And coming up, the war in Ukraine has also had a devastating impact of animals. People forced to flee their homes are also being forced to leave behind their pets. We'll speak to one woman who is leading an effort to save as many animals as possible. That's next.

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[14:21:31]

REID: Entire neighborhoods are unrecognizable in Ukraine's second largest city. Military officials say heavy shelling has battered residential areas in Kharkiv and the country's northeast. And worse may be yet to come. There are fears of a major Russian offensive in the days ahead. Homes have been reduced to rubble as people flee for safety, some leaves home. For some leaving home means leaving everything behind, including their beloved pets.

This puppy was pulled out alive from the debris of a shelled building in eastern Ukraine on Thursday and reunited with its owners. But for so many, that is to the case.

Olga Ilunina is the co-founder of Animal Rescue Kharkiv, and she joins us now. Olga, I see you have some pets there behind you. I know your team is there on the ground in eastern Ukraine, rescuing animals that were left behind. Tell us a little bit about the incredible work that you are doing there on the ground.

It sounds like we have lost her for a second, so we are going to go to some reporting from our colleague Phil Black.

(BEGIN VIDEO TAPE)

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: The operation to recover and investigate Bucha's dead is now industrial in its scale. Teams of people are working to empty the town's mass grave and many smaller ones. The victims of Russia's occupation are being retrieved from the earth. There are so many bodies, rarely do those doing the digging know the stories of how each person lived and died.

Here two men are being exhumed from the grounds of a small church. The priest who oversaw their first burial didn't know them. He says he thinks one was a scientist, the other a school bus driver. He thinks they were shot and killed in the street.

Among the now notorious images from Bucha's "Road of Death," Yablonska Street, was this man lying beneath his bike. His name was Vladimir (ph) Brovchenko, Svetlana is his widow. She says she told her husband, "Don't go, they're shooting. The tanks are already on Yablonska Street." But he insisted on leaving the house. She says the 68-year- old grandfather was killed as soon as he reached the road. His bike is still there.

This building stands near Bucha in the village of Vorzel. Among those killed here were Julia's parents, Natalia (ph) and Victor (ph) Mezoha (ph). She says her mother was helping a young injured woman who had been discarded by a Russian soldier when more soldiers suddenly entered their home. She says, "They came in, shot the woman, shot my mother, and then my father ran out when he heard something was wrong, and they shot him."

The young woman was Kareena Yorshova (ph). She was 23 years old. Kareena's (ph) mother says police told her her daughter was raped before she was shot.

It's more than two weeks since the Russians withdrew, and the operation to account for all the bodies they left behind isn't finished. Mourning each victim, remembering how they lived, understanding why they died will take much longer.

[14:25:02]

Phil Black, CNN, Bucha, Ukraine.

(END VIDEOTAPE)

REID: Thank you, Phil.

For more information of how you can help provide humanitarian aid to Ukraine, just log on to CNN.com/Impact. Our CNN audience has already donated almost $7.5 million, and more help is, of course, desperately needed.

We'll be back.

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REID: In the previous block we started to introduce you to Olga Ilunina. She's the co-founder of Animal Rescue Kharkiv, and she joins us now.

[14:30:00]

Olga, your team is on the ground there in eastern Ukraine, I see you have some pets, at least a bird and a cat behind you. You're rescuing animals that were left behind. Tell us about the work you are doing there on the ground.

OLGA ILUNINA, CO-FOUNDER, ANIMAL RESCUE KHARKIV: What are we doing now?

REID: Yes, tell me, what are you doing day in and day out to rescue some of these pets that were left behind?

ILUNINA: Our organization is specialized in rescuing animals from dangerous stations. For example, dogs that were hit by a car, cats in trees, animals that are stuck in different places. But now since --

REID: Olga, it is a little hard to hear you. I would imagine that some of the animals are probably likely very scared when you come across them. How do you keep them calm?

ILUNINA: How do we keep them calm? It's no need in this because our adoption center is bombed, and now they are all in a safe place. And most of them, most of our animals that were under our care, they are immigrated, and we continually see them. And something like that.

REID: I see you have a cat there and a bird. Are those your pets, or are those animals that you have rescued?

ILUNINA: Sorry, it's very bad sound. I can hear some words.

REID: We were just asking, those animals that you have, you have a cat there in your lap, you have a bird behind you. I hope they get along. But are those your pets, or are those animals that you have rescued?

ILUNINA: So one of the rescued animals, his owner left. She gave us a cat mother with kittens. And it's one of the kittens. His name is Barney (ph).

REID: Well, Barney (ph) is very cute, and Barney (ph) is also very lucky. You and the other volunteers, you are risking your lives to rescue abandoned animals. Have you ever thought about just evacuating the area with the animals you already have and just leaving this work behind?

All right, Olga, she is clearly doing some very important work with some adorable animals there in Ukraine, but thank you so much, Olga, for taking the time to talk to us.

We'll be right back.

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[14:38:12]

REID: Building your dream home or renovating your current one is going to cost you a lot more than it would have just a year ago. Inflation is taking a toll on the construction industry, and homeowners are paying the price.

CNN's Camila Bernal joins us now from Sherman Oaks, California. All right, Camila, we have seen the headlines of rising home prices, mortgage interest rates. But it is not just buying a home that's costing more. It's building one, too?

CAMILA BERNAL, CNN NATIONAL CORRESPONDENT: Yes, it is absolutely everything. Almost every single material that's needed to either build a home or do some type of remodeling at your home is up. And that is the problem, because you add that to the increasing home prices.

Of course, we saw interest rates going from about three percent to almost five percent, so all of that makes it a lot harder for any home buyer. One of the experts that I talked to told me that it narrows it down by about 25 percent when you're talking about the houses that you can afford. So a lot of people then say, OK, let me remodel. But the problem there is that the prices are high as well.

(BEGIN VIDEO TAPE)

CHEN YAACOV, OWNER, PEARL REMODELING: Yes, because this needs to be flush with the counter.

BERNAL: When Chen Yaacov started this home renovation project in April of 2021, he estimated the cost to be $600,000. But with the increase in costs in almost everything related to the homes.

YAACOV: New floors, new baseboards, new doors.

BERNAL: This general contractor is now dealing with very different numbers.

YAACOV: We are looking at $120,000 to $150,000 more. So we would we be at $720,000 to $750,000 now, just a year apart.

BERNAL: According to data from the Bureau of Labor Statistics, inflation for construction materials has increased more than 23 percent in the 12 months since March of 2021, metal products, 36 percent, lumber 21.8 percent, and plastic, 35.2 percent.

[14:40:06]

YAACOV: This plywood, it used to be like, $20, $25. Now you pay almost $50.

BERNAL: These price hikes are impacting new construction and existing homes.

RICHARD GREEN, DIRECTOR, USC LUSK CENTER FOR REAL ESTATE: If the cost of producing housing goes up, in order for that housing production to be profitable, you need to charge higher rent, or else you're going to lose money. And that's an important source of where our inflation numbers are coming from.

BERNAL: Richard Green, an economist, and expert on housing markets, believes house prices will fall next year, and thinks rent will continue to increase, but not as rapidly. And in terms of materials --

GREEN: Geopolitical issues have an enormous impact on the supply chain which has a big impact on the cost of materials. So you need to be able to do a forecast of how the world is interacting with itself in order to do a forecast on what is happening with the materials and prices.

BERNAL: To deal with the unknown, Yaacov says he has had to adjust his budgets, take a loss, or pass it on to his customers.

YAACOV: We have the adjust it, because otherwise, I am not going to make money.

(END VIDEO TAPE)

BERNAL (on camera): And this general contractor that I talked to tole me, look, I am just hoping that things stabilize. And when was trying to explain what stabilizing meant to him, what he told me was, look, I don't even care if it doesn't go down, but I just don't want prices to continue to increase, because of course, he says that in the beginning he was able to take on some of the cost.

But at the end of the day, he has to pass it on. Really everyone that I talked to said told me that the consumer, the customer, the buyer, that's the person who is really going to take on that cost. Paula?

REID: Absolutely. And Camila, the National Association of Home Builders is also calling for political action. So what is it that they want to see happen?

BERNAL: Yes, I talked to the CEO of the association, and what he told me is that all of this is connected, that all of this is dependent on what Congress and the White House does. He says, look, for example, lumber.

If we are in a trade war with Canada over lumber, those prices are going to continue to increase. So they are looking into legislation that will help ease any supply chain problems. And moving forward, they're wanting to hold the White House and Congress accountable. Paula?

REID: It's brutal out there. All right, Camila Bernal, thank you so much for that great reporting.

And coming up, private schools, designer clothes, jets, yachts, and lavish vacations -- these are the lifestyles of the kids of the Kremlin, lifestyles their parents claim to reject. We've got a closer look, next.

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[14:47:20]

REID: Moscow is widely expected to launch an attack to try to capture a section of eastern Ukraine. CNN's Ben Wedeman visits a town that could be in the path of that assault.

(BEGIN VIDEOTAPE) BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT (voice-over): Denis (ph) loads food in his car for a delivery run. The supplies sorted by volunteers in this old warehouse were donated from around Ukraine and abroad. Denis (ph) was a musician before the war.

UNIDENTIFIED MALE: My town broken. It's destroyed.

WEDEMAN: Sievierodonetsk is the city furthest East under Ukrainian government control, and under constant bombardment from Russian forces nearby. The supplies Denis (ph) and other volunteers deliver are what keep this city alive.

Two missiles landed outside Nadia's (ph) decrepit Soviet-era apartment building. The strain of living under the shelling, more than she can take. "It's hard," she says, "I can't stay in this room. I'm so afraid. I want it to be quiet and calm again."

With Russian forces massing in the East, there will be no quiet, there will be no calm.

Sitting on a hospital bed, Briana (ph) recounts the night her house was hit. "I was in the kitchen, and it started," she says. Her home is now in ruins.

More than 20 corpses lie scattered in the hospital's morgue, wrapped in sheets and blankets, awaiting burial. On the outskirts of the city, more evidence of the toll war has taken.

This is a hastily dug graveyard that was started since the war began. Just look at the dates -- 7th of April, 9th of April, 3rd of April, 4th of April. It goes on and on and on.

And more graves will soon be filled.

Ben Wedeman, CNN, Sievierodonetsk, Eastern Ukraine.

(END VIDEOTAPE)

REID: Ben Wedeman, thank you so much.

And you could call this a game of cat and mouse. The Russian embassy in Washington, D.C., got into a light fight Wednesday night with an antiwar activist who projected an image of the Ukrainian flag onto the exterior walls of its compound. A Russian spotlight operator spent nearly four hours unsuccessfully attempting to outshine the blue and yellow image.

[14:50:05]

The activist managed to evade those Russian attempts by moving their light up and down and side by side, all while Secret Service officers just stood by and watched.

Now, private jets and posh apartments, just a day in the life of a Kremlin kid, many of whom grew up in countries whose societies their parents claim to reject. The children of Vladimir Putin and his top advisers are living lives of luxury despite their parents allegedly making modest salaries. Confused? Well, CNN's Drew Griffin explains.

(BEGIN VIDEO TAPE)

DREW GRIFFIN, CNN SENIOR INVESTIGATIVE CORRESPONDENT: As Putin's atrocities continue in Ukraine, he falsely blames the West and Europe for the war.

VLADIMIR PUTIN, RUSSIA PRESIDENT (through translation): The whole planet is now paying for the west's ambitions and the west's attempts to maintain its elusive dominance.

GRIFFIN: Yet his own adult daughters, sanctioned by the U.S. Treasury, both have reportedly owned property in the west, including this seaside mansion on the French coastal town of Biarritz.

PROF. JODI VITTORI, GEORGETOWN UNIV. WALSH SCHOOL OF FOREIGN SERVICE: It's hypocritical to deride the west and their liberal values, and then still rely on the west and their liberal values.

GRIFFIN: That hypocrisy, criticizing the west while family members live in the west, is shared by Putin's inner circle. Kremlin Press Secretary Dmitry Peskov unofficial role as Vladimir Putin's chief liar.

DMITRY PESKOV, KREMLIN PRESS SECRETARY: Russian military are not hitting civil aims, civil targets.

GRIFFIN: He spent his life in government jobs, official salary about $173,000 in 2020, yet has been spotted wearing a $600,000 watch according to an anti-corruption group. His socialite daughter Liza, went to a boarding school in France, interned at Louie Vuitton, and posted pictures of an enviable life in Paris filled with fashion and glamor.

LISA PESKOVA, DMITRY'S DAUGHTER (through translation): I consider myself a person of the world. I was born in Turkey, lived in France, studied in Russia and France. That is, I don't have any favorite country. I love each place in its own way.

GRIFFIN: So how does a family live like this on a Russian government salary? Liza Peskova once wrote a tongue-in-cheek post saying she's the daughter of the main billionaire and thief of the country. The U.S. Treasury all but used the same language when they sanctioned her and other family members, saying they live luxurious lifestyles that are incongruous with Peskov's civil servant's salary, and are likely built on the ill-gotten wealth of Peskov's connection to Putin.

Peskova called the sanctions a witch hunt on Telegram, saying "accusing family for enabling war is madness," and she's "proud to be Russian." Jodi Vittori, Georgetown University professor specializing in illicit state financing, says it boils down to Russia's current governmental system -- kleptocracy.

VITTORI: A kleptocracy is merely a government that is ruled by thieves, and where the policies and decisions made are on behalf of those thieves. GRIFFIN: It's a similar story with Russia's Foreign Minister. Sergey Lavrov officially makes $142,000 a year. But the 27- year-old who's been described as Lavrov's stepdaughter by the British government, has been living a lavish lifestyle. Her name is Polina Kovaleva.

The Anti-Corruption Foundation says she attended a British boarding school. Like Peskov's daughter, she's left a social media trail of exotic trips, filthy rich adventures, and high style across Europe and beyond. And she reportedly owns a 4 million pound property in London, according to the U.K., where she has been sanctioned for benefiting from association of those responsible for Russian aggression.

Though the accounting is almost impossible to trace, Russian anti- corruption investigator Maria Pevchikh is convinced the apartments, the mansions, lifestyles are the real salaries being paid to Putin's allies.

MARIA PEVCHIKH, HEAD OF INVESTIGATIONS, ANTI-CORRUPTION FOUNDATION: The system works in a way that in order to keep those people who are willing to be the face of Putin's regime, like the ministers, they need to be incentivized. Their salary is not enough.

GRIFFIN: Georgetown's Jodi Vittori says the people in Putin's inner circle know it could all vanish in an instant.

VITTORI: He can turn on any of his regime at any time he so chooses. Your assets can be frozen, you can go to jail, your family can go to jail, you could find yourself chased out. So moving as much as you can out of the country also just make sense.

GRIFFIN: As for a response to this from the Kremlin, a spokesperson for the Ministry of Foreign Affairs tells us that neither Putin nor Lavrov have accounts in Britain or anywhere else abroad. And as for the sanctions against Putin's daughters, a spokesperson told us this, that Russia will respond without fail and will do so as it sees fit.

Drew Griffin, CNN, Atlanta.

(END VIDEO TAPE)

REID: Well, John Lennon's iconic song "Imagine" has been reimagined by his son.

[14:55:00]

Julian Lennon was just a kid in 1971 when his dad wrote the song. It became an anthem for peace that transcended generations. He said that he never wanted to perform "Imagine" publicly unless it was, quote, "the end of the world." But the situation in Ukraine has made him reconsider. Julian recorded the song to benefit the war-torn country, saying his father's lyrics reflect the light at the end of the tunnel that we are all hoping for.

(BEGIN VIDEO CLIP)

(SINGING) UNIDENTIFIED MALE: You may say that I'm a dreamer, but I'm not the

only one. I hope someday you'll join us, and the world will live as one.

(END VIDEO CLIP)

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