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New Evidence Of Bucha Atrocities In Ukraine; Major U.S. Recession Prediction; Putin: Bucha Provocation Derailed Talks With Ukraine; U.N.: Putin Agrees In Principle To U.N. And Red Cross Help With Mariupol Evacuations; Russia Expected To Cut Gas Supplies To Poland, Bulgaria; Attacks In And Near Moldova Raise Fears Russia Aims To Open New Front In Its War; Allied Nations Meet To Talk Military Support For Ukraine; Top U.S. General: International Security Order At Strike; Sheltering In Mariupol Steel Plant. Aired 2-3a ET

Aired April 27, 2022 - 02:00   ET

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

[02:00:30]

ANNOUNCER: This is CNN Breaking News.

ISA SOARES, CNN INTERNATIONAL ANCHOR: Hello and a warm welcome to our viewers in the United States, and right around the world. I'm Isa Soares, live in Ukraine. Where we have new evidence of Russia's brutality. Photos of the dead in Bucha are now being used to build a war crimes case.

ROSEMARY CHURCH, CNN INTERNATIONAL ANCHOR: And I'm Rosemary Church at CNN World Headquarters in Atlanta. I'll have all our other top stories, including a dire warning from a Wall Street Bank, why it says a major U.S. recession is coming, and how that news is affecting the stock market.

SOARES: Atrocities committed against civilians in the Kyiv suburb of Bucha are at the heart of investigations into Russian war crimes. The Ukrainian prosecutor leading the country's probe has exclusively shared photos with CNN's Anderson Cooper. And a warning they are graphic indeed.

And they were taken in early March and show bodies strewn on the street. And there are evidence in Ukraine's investigation that being used as evidence in the investigation, of course, into war crimes. CNN's Anderson Cooper will have a full report on this later today. So do stay tuned for that.

CNN has also exclusively obtained drone video placing Russian forces near the scene of those killings in Bucha. Highlighted there in the middle of your screen is a Russian military vehicle sitting at really an intersection in Bucha. And right up the street are the bodies of several dead civilians. And it was filmed in-- on March 13th.

And this video from March 12th shows Russian soldiers around a military vehicle parked outside a house down the street from those same killed civilians. CNN has been able to geo-locate as well as authenticate both those videos. Well, despite evidence like this, Russia continues to insist videos

are being faked and that the bodies were staged. Here's what an international criminal court prosecutor had to say about that to have a listen.

(BEGIN VIDEO CLIP)

KARIM KHAN, PROSECUTOR, INTERNATIONAL CRIMINAL COURT: In the U.S. House or Massachusetts, he said it was a much greater honor for him as being President as he was. I find that a little harder to believe, but, you know, politicians lies. But he was called the old man-- all the men, he rose every day to speak from the evils of slavery, they got some seconds actually changed the rules to keep him from doing that. But that rule was really important for him. He was number one, he was elected president. He didn't get a majority of the electoral (INAUDIBLE) so it was thrown to the U.S. House, which--

(END VIDEO CLIP)

SOARES: Well, on top of denials, Russian President, Vladimir Putin now claims talk of Bucha derailed peace talks with Ukraine. Have a listen.

(BEGIN VIDEO CLIP)

VLADIMIR PUTIN, PRESIDENT OF RUSSIA (through translator): Unfortunately after reaching agreements and after our clearly demonstrated intentions to create conditions for favorable conditions for the continuation of negotiations, we encountered a provocation in the village of Bucha to which the Russian army has nothing to do.

(END VIDEO CLIP)

SOARES: What Mr. Putin's comments came during a meeting with U.N. Secretary General, Antonio Guterres on Tuesday at that very meeting. The U.N. says the Russian President agreed, in principle to involve the U.N. as well as the Red Cross in evacuations from besiege-- the besieged city of Mariupol. But he said Russia won't sign a peace deal with Ukraine until quote, "Territorial issues in Crimea and the Donbas region are settled."

While right now Moscow is aiming a different sort of weapons really at European economies. According to polish as well as Bulgarian authorities, Russia is cutting off natural gas supplies to their countries. This after they refused Russia's demands to pay in rubles specifically Poland.

Says Russia's cutting supplies to the Yamal pipeline, the one that we would be able to show you in green on this map. But the move could signal trouble of course, for European economies more broadly, which are still heavily reliant on Russian energy.

Let's more-- let's bring in Clare Sebastian in London for more on all this. And Clare, let me start this hour with those disturbing images, yet more disturbing images out of Bucha that are clearly being used by Ukraine's prosecutors evidence of war crime. What did President Putin have to say about this and other mass graves has been found in Mariupol here?

[02:05:02]

CLARE SEBASTIAN, CNN CORRESPONDENT: Yes. Isa, President Putin continues to deny that Russia was responsible for any of the killings in Bucha. The Kremlin has said that the images that we've seen, you know, emerging over the past few weeks since Ukraine retook that town are fake. This is the line they continue to take.

And meanwhile, the drone image-- images that are obtained exclusively by CNN really provide the first evidence that we've seen a Russian military vehicles operating on the same street where those bodies were found by Ukrainian forces. So this will bolster the case, not only for Ukrainian prosecutors, but for the International Criminal Court as well, which is reviewing this evidence.

But I think it's clear that Bucha was a turning point in this war. President Putin saying it himself in that comment that it essentially had derailed peace talks that up until what he called the provocation in Bucha, Ukraine, and Russia was sort of reaching some kind of breakthrough that they might have some kind of basis for continuing future talks.

He says after that Ukraine simply gave up that is, of course, not the side of the story that we're getting from Ukraine. But again, you know, this is-- this was really a critical point. This is what sparked the fifth round of sanctions from the EU, which included a coal embargo and more sanctions from the U.S.

So, I think as more evidence emerges of this, we can see more-- we are going to see more of these economic weapons in play.

SOARES: Let's talk about those economic weapons because of course, the EU did not sanction oil or gas, which has always been criticized somewhat. We're hearing now Russia putting pressure on Poland and Bulgaria with Gazprom warning, it will cut off supplies if they pay in rubles.

I remember when that warning came out, Clare, you and I. I was on set with you, we're talking about this decision. Will these countries pay in rubles?

SEBASTIAN: Very unlikely that they will, Isa, in terms of Europe as a whole, there's only really one outlier in this, and that's Hungary that says it will pay in rubles. The others are saying they won't that they can track-- their contracts essentially don't allow it that they are to pay for gas in euros.

And there's another part of this, the EU has warned that paying for Russian gas in rubles could be in violation of sanctions. They put out guidance on this Isa on Friday that says that, because the system that Russia has put in place where you essentially open two accounts with Gazprom bank, one in euros or dollars, one in rubles, and they take care of the conversion. They say that some of that could involve the Russian Central Bank, which could be in violation of sanctions. And they say that the lag time between the depositing of the euros and

the conversion into rubles could essentially mean that, you know, Russia is-- the Europe's gas importers are loaning the money to Gazprom, which would also be in violation of sanctions.

But the other thing they say is that we don't really know enough about the system that Russia has put in place to really know what's going on here and know how to deal with it. So very unclear at the moment, but it doesn't seem like European countries are going to pay for gas, most of them in rubles. And that means that we could see more of these potential cut offs of gas, very damaging potentially to European economy economies.

SOARES: Yes, indeed. And keep an eye on that. Keep us posted Clare as soon as there any more developments. Do let us know.

Meanwhile, a spate of attacks in and around Moldova is raising fears Russia is planning a new front in its war in Ukraine. This video shows a plume of smoke just rising outside Odesa. Authorities say a Russian missile hit a critical bridge in the Odesa region. And we are hearing from Ukrainian rail officials.

Another missile has hit the same rail and road bridge just hours ago. The damage essentially cuts the far southwest corner of Ukraine which border is Moldova off from the rest of the country.

On the same day, radio towers were damaged by explosions in Transnistria, a Russian backed breakaway region in Moldova. And this incident as well as a report of rocket attack on Monday prompted Moldova's president to call an emergency meeting of the country's Security Council.

Ukraine's president says Russia is trying to sow tensions between his country and Moldova. Have a listen.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, PRESIDENT OF UKRAINE (through translator): This is happening to destabilize the region and threaten Moldova. They are showing them that if Moldova supports Ukraine, this is what's going to happen.

(END VIDEO CLIP)

SOARES: Meanwhile, heavy fighting continued Tuesday in the eastern regions of Donetsk and Luhansk. An adviser to President Zelenskyy says Russia remains focused on encircling Ukrainian forces. Ukraine's military says it repelled several attacks although shelling as well as airstrikes continues along the frontlines with fighting in the streets in some areas.

Kharkiv in the Northeast is among the hardest hit cities from Russian bombardments. Clarissa Ward gives us a close up look at the damage.

[02:10:00] CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT: There's no rest at night for the people of Kharkiv. Flares light up the sky as artillery thunders through the air.

For nearly nine weeks, Ukraine's second largest city has been shelled relentlessly. Only by day, you see the full scale of the destruction. The neighborhood of Pavlovo Pole was hit repeatedly last month, as Russian forces tried to push into the city. No site was spared, not even the local nursery school.

So, it looks like this was some kind of dormitory, you can see children's beds here all around. And then in the next door room over there was their classroom. Their shoes still litter the locker room. Mercifully, the school had been evacuated, so no children were killed in the strikes.

The mayor of Kharkiv says that 67 schools and 54 kindergartens have been hid here since the war began. And what's so striking when you look around is that it's so clearly not a military target. This is a residential neighborhood.

Just a few blocks away the bare skeleton of an apartment building. Authorities say more than 2,000 houses have been hit here. Sounds of war are never far away.

So, you can see this is what's left of the bedroom here. It's just astonishing. Two doors down, we see a figure of peeking out. 73-year- old, Larissa Karmina (ph) is still living there alone.

So she's saying that she does have a sister, who she could stay with, but she also lives in an area that's been heavily hit, and she's living in a shelter at the moment.

UNIDENTIFIED FEMALE (through translator): It's from all sides, she says. From there and there they can shell.

WARD: With her fresh lipstick, Larissa is a picture of pride and resilience. Much like this city, still standing tall in the face of a ruthless enemy. Clarissa Ward, CNN, Kharkiv.

SOARES: All military leaders for more than 40 nations met in Germany on Tuesday to find ways to get more weapons and other support to Ukraine really as quickly as possible.

At the conference, Germany announced it will deliver drop on (ph) anti-aircraft tanks. It's a policy shift for Germany which of course has previously rejected providing that type of heavy weaponry.

Meantime, America's top generals spoke exclusively with CNN, Jim Sciutto after the meeting Germany. General Mark Milley warned of what he says would be the consequences if Russia isn't held accountable for invading Ukraine. Have a listen to what he had to say.

(BEGIN VIDEO CLIP)

GEN. MARK MILLEY, CHAIRMAN, U.S. JOINT CHIEFS OF STAFF: What's at stake is the global international security order that was put in place in 1945. That international orders lasted 78 years. It's prevented great power war. If there is no answer to this aggression, if Russia gets away with this cost free, then so goes the so called international order. And if that happens, then we're heading into an era of seriously increased instability.

(END VIDEO CLIP)

SOARES: Well, General Milley also criticized the Russian Foreign Minister over his recent comments about the danger of a nuclear war saying it was quote "Completely irresponsible and anytime a senior leader of a nation state starts rattling a nuclear saber than everyone takes it seriously." Those were his words.

I'd like to bring in Lesia Vasylenko, she's a Ukrainian Member of Parliament joins us now live from Strasbourg in France. Lesia, thank you very much for taking the time to speak to us.

Let me start off with really our top story. We're seeing yet again, more atrocities being committed in Mariupol with another mass grave being found. An adviser to President Zelenskyy told me just a couple of days ago, in fact Lesia that we could be looking at 20,000 people being killed in Mariupol. Your thoughts this morning?

LESIA VASYLENKO, PEOPLE'S DEPUTY OF UKRAINE: Absolutely, the numbers are devastating. It's not just Mariupol, it's many towns, cities, villages, all across Ukraine, in particular concentrated in the East down to Luhansk, Donetsk regions and then over to the South with Mykolaiv and Kherson which just got occupied yesterday.

And the blows that we're seeing on Odesa means that there are yet more civilian casualties to come. My heart goes out to all the people in the occupied territories as the crimes that we have seen committed on Bucha, Irpin, and all-- in Kharkiv would be occupied are reaching in the south and those areas.

[02:15:15]

VASYLENKO: And the people alaso suffering day in and day out, hour by hour on the hands of Russian soldiers.

SOARES: Yes, and we showed some of the images from Bucha as well exclusive images coming in to CNN from-- shared with Ukraine's prosecutor with our Anderson Cooper. Let me get your thoughts though, on what we heard from President Putin.

He met with the U.N. Secretary General, Antonio Guterres. And he promised in principle, Lesia to let the U.N. and Red Cross get them involved in evacuating civilians from Mariupol. Do you trust that this can be achieved given that been so many promises and they've been broken?

VASYLENKO: I understand that in principle clause, which was stated that either if you let them evacuate in corridors operate properly or you do not. And it's a simple as that. It's not about military objectives or military targets. It's about saving the lives of innocent civilians, women and children.

And when it comes to Putin, we can expect absolutely anything. He can say one thing one day, and go back and change his words as easy as that. He has zero values of human life. I don't think that anybody who's sitting down at the tables needs to use that as a baseline or conversation that all decision making in the future.

Now, I look forward to the U.N. and the Red Cross having a more robust presence on the ground despite their representatives returned to operating in Ukraine at full scale, and it's high time that the Red Cross or the U.N. actually started doing their job properly with helping Ukrainian civilians.

They should do that, they should be providing the assistance and they should be getting those people out of the combat zone as soon as possible. But at the same time, I have to warn that they need to be prepared to more Russian attacks crushing and to be prepared to protect the civilians from Russian soldiers shooting at in their backs with their guns and their missiles, and whatever.

SOARES: Lesia, thank you very much for taking the time to speak. I'm going to leave it there. Unfortunately, your audio is not very clear. So, apologies to our viewers there. Lesia Vasylenko, let's reconnect in the coming days and keep in touch. Appreciate, Lesia.

And still ahead right here, a stark warning from Deutsche Bank have major U.S. recession is coming. Why they say the Federal Reserve could be making things worse? That's next.

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[02:21:40]

CHURCH: Welcome back, everyone. Well, fears of a coming U.S. economic recession are taking a toll on Wall Street. The Dow fell more than 800 points on Tuesday, and the tech heavy NASDAQ sank to a 52-week low. Trading is winding down for the day in the Asia Pacific region. You could look at the numbers there.

Shanghai Composite is up there. But when you look at the Nikkei that's down more than one percent, Australia's s&P ASX 200 down nearly one percent, and Hang Seng is up, but only slightly.

So meanwhile, a new report from Deutsche Bank predicts a major U.S. recession is coming and inflation will likely stay high for longer than expected. The bank says aggressive rate hikes by the Federal Reserve meant to keep inflation in check could actually make things worse.

Ryan Patel is a Senior Fellow at the Drucker School of Management at Claremont Graduate University. And he joins me now from Denver, Colorado. Always good to have you with us.

RYAN PATEL, SENIOR FELLOW, DRUCKER SCHOOL OF MANAGEMENT: Thanks, Rosemary. CHURCH: So Deutsche Bank has global markets on a knife edge with this

prediction of a major U.S. recession on the way blaming the Federal Reserve's plan to control inflation with the aggressive rate hikes. But are there other factors at play here? And do you agree with this dire forecast?

PATEL: I feel like when you and I get together, we're breaking down this news is not always great.

CHURCH: Never.

PATEL: Deutsche Bank was really aggressive toward the Fed. I mean, they went further in the report stating how the Fed last 40 years has failed and hasn't really done its job in these types of sessions. And mind you, Deutsche Bank has also a couple of months ago saying that the recession was going to be minor.

So really, this report is really strictly focusing on the Fed's ability to not control inflation, they believe and they're putting in the report that that they won't be able to get in under control. I also think that there are other factors in play here not just the inflation, but obviously the global economy and the labor rate.

There's obviously more at play to this. But there this is really about the lack of trust that the bank has for the Federal Reserve.

CHURCH: So if Deutsche Bank is sending a direct warning to the Federal Reserve to change course immediately in the way it responds to high inflation with the-- these aggressive rate hikes, how likely is it that the Fed will listen and ease off to perhaps calm global market nerves?

PATEL: Well, I'm hoping the Fed will understand and I think they do, but I think it's-- they need a balance. Like I think it's gotten out of control on either side. And I think part of the recession, Rosemary, isn't so much about it's okay to-- I mean, I guess never okay to go into recession, but I'd rather have a minor recession than a major recession.

And there's a big difference between the two. I think we're seeing inflation rising, we've seen prices rising, we've seen supply sank constraints, obviously the pandemic. I think it's clear in all signs point that a recession can-- will possibly occurred, and we saw this in the last recession. But it could be minor, it could be a blip and we could be back road to recovery.

So I don't want to make it seem like that. There isn't a path that isn't all doom, but, you know, Deutsche Bank is stating that, you know, the recession or the recovery is not going to happen until 2024 which is obviously two years from now, versus we are thinking that hopefully by next year it will be back to somewhat normal.

[02:25:12]

CHURCH: Yes. I mean, you mentioned that Deutsche Bank is seeing the economy rebounding by mid-2024. But I mean, a lot of damage will have been done by then. So how do we avoid a recession, or at least avoid a major recession? Is that even possible at this juncture?

PATEL: Yes. I think-- I mean, everything's on the table. I think there's a lot possible when it comes to this economy and ensuring that, you know, there is maybe there's a-- the interest rate doesn't get as cut as much. But then there's the flip side of one, they didn't ensure that there's cash on hand, and being able to have goods.

I think, really the global recovery is the X factor in all of this, if we didn't have the pandemic looming still, and be able to meet the demand for consumers and goods, Rosemary, we should be able to recover to some of that. But because of the pressure that's being put on companies and others into the economy, it's all solely focused on the-- on what the worth is for the dollar, and then can the consumer pay for what's the prices that are increasing?

I think that's where-- if you can ensure the citizens and consumers can have not as bad as being able to be expensive in paying for things, it'll be great. But that takes a lot of different policy. And that takes coordination between the government, the banks, the consumers, and the company, everybody involved in this.

CHURCH: Yes. So Ryan, how does China play into all of this with its zero-COVID policy forcing the critical port city of Shanghai into a draconian lockdown along with other parts of the country as well? So what's its role here?

PATEL: I'm glad that you asked me that. I think it's been an underestimated conversation when we talk about just one aspect of the recovery of the economy. Shanghai is the busiest port in the world. When you talk about shutting it down with imports and exports, we did see it over the last two years because of COVID.

But when we started to see some kind of recovery, this definitely will stunt the growth. I mean, there's no doubt about that. And when we're already shortage, especially when you talk about telecom and auto, you know, in automobile side, you're going to see some demand even further drop because of the pricing going to increase and that does have an effect.

It always goes back to my question, how long can you stay close and being able to have that goods? But this will have an effect, Rosemary on the outlook in some of these industries, and they will be-- have a higher price point. And then you and I will be back talking maybe in a couple months, saying, can people afford these and can these companies stay in business based on the nimbleness they did already last few years? Can we continue to do that over the next six months?

CHURCH: Yes. No doubt. Ryan Patel, many thanks, sir, for joining us and sharing your analysis. Appreciate it.

PATEL: Thank you.

CHURCH: And our coverage of Russia's war on Ukraine continues in just a moment. Coming up. Hundreds of families are sheltering from Russia's onslaught underground, deep inside a steel plant in Mariupol.

Children haven't seen daylight in weeks, and now new reports of atrocities of raising concerns.

[02:30:00]

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN. More people get their news from CNN than any other news source.

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN Breaking News.

SOARES: Welcome back, everyone. We are following the worsening situation in Ukraine's Mariupol. British intelligence says the majority of Russian airstrikes and Mariupol are likely being conducted using unguided freefalling bombs. And those weapons greatly, of course, increase the risk of civilian casualties, as you see in there from the Ministry of Defense.

And this comes as Mariupol's mayor says a third mass grave site has been discovered. New satellite images purportedly show freshly dug sites which have grown in size over time. The mayor says Russian troops are forcing Ukrainians to bury bodies in exchange for food. All this amid reports of increasingly dire conditions inside the Azostal steel plant. CNN's Alex Marquardt has more.

(BEGIN VIDEOTAPE)

ALEX MARQUARDT, CNN SENIOR U.S. NATIONAL SECURITY CORRESPONDENT (voiceover): It's all that stands in Vladimir Putin's way from fully conquering Mariupol, a key prize for the Russians. A sprawling Azovstal steel plant operating on this site for nearly a century covering four square miles, ten square kilometers, right on the Sea of Azov. It's a towering complex that normally employs 10,000 people, with a maze of tunnels, pipes, and shelters built to withstand a nuclear blast, all blow ground, and so vast that a pro-Russian commentator called it a city below a city. It is now a fortress for Ukrainian fighters and the civilians they're defending.

YURIV RYZHENKOV, CEO, METINVEST: As far as we know, about 1,000 civilians are still at the shelters at the plant.

MARQUARDT (voiceover): Since the Russians launched their assault on the city in early March, the news has tightened. This informational video from before the war shows how difficult a close-quarters fight would be in this huge plant full of manufacturing facilities, offices, and operations rooms.

[02:35:00]

Putin has ordered his military to abandon plants to take the facility. Instead, telling his defense minister to seal it off so tightly, he said, that a fly cannot pass through.

KURT VOLKER, FORMER U.S. SPECIAL REPRESENTATIVE FOR UKRAINE NEGOTIATIONS: This is a statement of convenience by President Putin. His forces were unable to really go in and take the steel plant, to take all of Mariupol without suffering even worse casualties, and even more damage to the force.

MARQUARDT (voiceover): Ukrainian forces inside have said there are hundreds of wounded soldiers and civilians. They have pleaded with the international community to find them a way out. Sheltering below ground with no natural light and little news.

The children here are crying all the time. They want to play. They want to live, this woman said. They haven't even seen daylight for weeks.

She said supplies are running low. The CEO of the company that owns the plant said that the underground shelters, which can hold 4,000 people had been stocked with 2 to 3 weeks of food and water. The war started two months ago.

RYZHENKOV: To be honest, I'm surprised they still have food and water there in the shelter. We couldn't get any help into Mariupol because the Russians did not allow us to do these humanitarian convoys into the city.

MARQUARDT (voiceover): The prospects of holding the plant in Mariupol looked grim. Controlling it means Putin would control land stretching all the way from Crimea to Western Russia, a long-held goal.

VOLKER: Even if Mariupol falls and these poor people are killed and transported away, it doesn't mean that Russia will hold it. The Ukrainians are getting better and better organized, better and better equipped, and they are going to continue fighting.

(END VIDEOTAPE)

MARQUARDT (on camera): Today, the mayor of Mariupol called the situation at the plant a humanitarian catastrophe. He accused the Russian military of continuing to shell the factory, which he did praise as a fortress for the soldiers and the civilians inside.

Now, the United Nations Secretary General was also in Moscow today, meeting with Russian President Vladimir Putin. He said that Putin agreed in principle for the U.N. and the Red Cross to help coordinate an evacuation from the steel plant. Of course, we have seen countless past Russian agreements about evacuations fall apart. Alex Marquard, CNN, Washington.

SOARES: And we have some breaking news, just to bring you. In the last few minutes, we have been hearing from a spokesman for the Ukrainian military who has acknowledged that Ukraine has been losing towns in the East of the country, of course, as Russia's offensive there intensifies on day 63 or so of this war. And they're saying amid heavy fighting on those free front, we've been seeing Russian forces were being reinforced and re-supplied from bases inside Russia, that's coming from Ukrainian spokesperson.

The greatest activity, according to the Ukrainian official, the Ukrainian spokesperson, is in the South, in the Kharkiv region that we've been bringing to you, as well as the west from Donetsk. That's where Ukraine is seeing the biggest onslaught of Russian airstrikes and activity. Also, in the North and in the South, also expanding hostilities there. Russian forces, this spokesperson said, are trying to consolidate, as we know, a land bridge to Crimea and occupy Ukraine in coastal regions. So, they are regrouping and conducting air reconnaissance as they try -- as the Russians try to improve and optimize their tactical position.

So, we'll stay on top of this breaking news story. But this is really the first time we are hearing from Ukrainian officials acknowledging that Ukraine is losing towns in these, as of course, Russia pushes on with that offensive. As soon as we'll have more details, of course, we shall bring it to you.

Still to come, in the meantime, here on the show, U.S. Vice President Kamala Harris has tested positive for COVID-19. We'll have the latest on how she's doing. And the potential risk for President Joe Biden.

Plus, residents in Beijing fear a citywide lockdown is imminent now that COVID testing for millions of people is underway. Both those stories after a very short break. You are watching CNN.

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[02:40:00]

CHURCH: Welcome back, everyone. Myanmar's deposed leader, Aung San Suu Kyi has been found guilty of corruption and sentenced to five years in prison. The country's military rulers alleged Suu Kyi accepted gold and cash payments totaling $600,000 from another official. It's the first of 11 corruption charges against the Nobel Prize winner. We are told she was not able to meet with her lawyers before this verdict was announced. Suu Kyi denies all of the allegations.

In Singapore, authorities executed a Malaysian man whose lawyer says was intellectually disabled. The family confirmed the execution. The 34-year-old was sentenced to death for smuggling heroin into Singapore in 2009. Last month, a Singapore court rejected a final appeal to spare his life. The case received international attention from activists, who believe the Malaysian man's life should have been spared due to his disability.

U.S. Vice President Kamala Harris is in isolation and will be working from home after testing positive for COVID-19. In a tweet, Harris said she does not have any symptoms and is grateful to be vaccinated and boosted. She tested positive after returning from California and is taking Pfizer's Paxlovid drug as part of her treatment. Contact tracing is now underway to determine if others around her are infected. The White House says Harris has not been near President Joe Biden due to their recent travel schedules.

[02:45:00]

In China, one million people are now under lockdown in a city East of Beijing after just one person tested positive for COVID-19. Residents can only leave their homes to get a COVID test. Meantime, panic is growing in Beijing as the city conducts massive COVID tests there. Residents fear a citywide lockdown may be imminent as cases rise. And CNN's Selina Wang joins me now from Kunming in China.

Good to see you, Selina. So, one million people under lockdown now in a city near Beijing after only one person tested positive for COVID. And this coming after we've already seen draconian COVID measures in Shanghai. What is the latest on this? And of course, the reaction in the country to these tough lockdowns?

SELINA WANG, CNN CORRESPONDENT: It's remarkable, Rosemary. But this is the reality in China under its zero-COVID policy where you have a million people under full lockdown after just one single positive COVID-19 case. But it's a special concern to officials because this is the City of Sanhe that we're talking about. It is only 50 kilometers from Beijing, the capital, and a lot of people commute between the two cities.

And in Beijing, meanwhile, officials there are trying to quash this outbreak as early as possible in order to avoid the failure and the chaos that we saw in Shanghai. Already Beijing is in a partial lockdown. And whether or not that becomes a citywide full lockdown, depends on how many cases are reported as a result of the mass testing.

Right now, 20 million residents are getting tested in several rounds over the coming days. And so far, 114 COVID-19 cases have been reported since Friday. And officials right now in Beijing, they're trying to reassure residents that they have enough food for everybody. That supplies are going to remain stocked. They're trying to make sure people understand they're not going to repeat what happened in Shanghai.

But still, Rosemary, people in Beijing are concerned. We've seen some panic buying at the supermarkets. People are trying to prepare for the worst because they have seen on Chinese social media the horrors that people went through in Shanghai, the lack of food, medical care, the extreme difficulty to get just the most basic necessity. And that type of anger is still continuing to boil over. We've seen protests and even clashes between residents and police.

And I want you to take a listen to this video on Chinese social media of people banging pots and pans in protest of these lockdowns, take a quick listen.

(BEGIN VIDEO CLIP)

(END VIDEO CLIP)

So, Rosemary, while a lot of attention has been paid to Shanghai, these lockdowns are happening all across China. Dozens of cities have gone into lockdown. And China have rolled out some sort of restrictions. And people in year three of the pandemic, Rosemary, are getting fatigued.

CHURCH: Yes, understandably. And of course, losing trust in their leadership, no doubt. Selina Wang, joining us from Kunmin in China, many thanks.

And still to come we are now learning about the concerns one top Republican had about his colleagues after the January 6th insurrection. The details just ahead.

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JACK MALLERS, CEO, STRIKE: With bitcoin, not only do we have the best monetary asset in human history, we have the best monetary network in human history. Bitcoin solved a lot of the monetary functions that we know as very expensive with cryptography and with math. And so, I can escrow a bare instrument in bitcoin. It's worth the same amount in Chicago as it is in London, as it is in Nigeria, as it is in Argentina. And I can zip it around the world instantly in for free.

What we can do is take your dollar and escrow them around the world over the bitcoin network. So, think about this, what if I want to send money from Chicago to London.

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What we can do, is take dollars from your bank account, turn it to bitcoin, zip that value to London, instantly for free. You blink. You've missed it. It goes so fast and it cost nothing. And then we turn it back into British pounds. That's innovation and that's how we use bitcoin in a monetary network.

MICHAEL CLERIZO, AUTHOR AND CONTRIBUTING EDITOR, WSJ. MAGAZINE: Cesar de Trey, a manufacturer of gold dentures in England traveled to India then part of the British Empire in 1930 to sell his wares to officers of the British army. Many of the officers he met complained about their wristwatches getting smashed during Polo Matches. Back in Europe, de TrEy hooked up with two watchmakers, LeCoultre (INAUDIBLE) Jaeger and an engineer named Alfred Chauvot. And the four of them devised the Reverso.

Now, the unique feature of the Reverso is that the case slides and flips over. So, the glass part of the watch, the crystal, is not exposed. What is exposed is a solid metal back, which can withstand any bumps and smashes during the polo matches or any other sport.

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CHURCH: Welcome back, everyone. New audio is revealing concerns shared by U.S. House Minority Leader Kevin McCarthy following the January 6th Capitol insurrection. In the audio, obtained by "The New York Times", McCarthy worried the inflammatory rhetoric from Far-Right House Republicans could incite violence against other lawmakers. Here is part of what he had to say.

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KEVIN MCCARTHY, MINORITY LEADER OF THE UNITED STATES HOUSE OF REPRESENTATIVES: Tension is too high. The country is too crazy. I do not want to look back and think we caused something or we missed something and someone got hurt. I don't want to play politics with any of that.

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CHURCH: And new revelations are emerging from text messages showing the role one Republican congressman played in efforts overturn the 2020 election. CNN's Ryan Nobles has the details.

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RYAN NOBLES, CNN CONGRESSIONAL CORRESPONDENT (voiceover): Congressman Scott Perry of Pennsylvania has been steadfast and pushing the big lie that the 2020 election was stolen.

REP. SCOTT PERRY (R-PA): -- get away in Georgia. The President got away in North Carolina. It is all going to come down to the Keystone State.

NOBLES (voiceover): But a new batch of text messages obtained by CNN which have not previously been reported, illuminate how active he was behind the scenes as well. New messages showing he had a role at almost every turn in scheming to reverse or delay the certification of the 2020 election. On November 12th, five days after the election was called for Joe Biden, Perry texted Chief of Staff Mark Meadows.

From an intel friend, DNI needs to task NSA to immediately seize and begin looking for international comms related to Dominion. Was China malware involved?

This text has never been revealed before. And it shows Perry encouraging Meadows to get John Ratcliffe, then the Director of National Intelligence, to look into false conspiracies about Dominion Voting Machines being hacked by the Chinese. Perry also claimed the "Brits" were behind the plot and that CIA Director Gina Haspel was, "Covering for them." He texted Meadows, DNI needs to be tasked to audit their overseas accounts at CIA and their national endowment for democracy.

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Despite the push from Perry, a source tells CNN, Meadows did not approach Ratcliffe about those requests. Perry also was insistent that Meadows put DOJ Official Jeffrey Clark in a position to investigate voter fraud claims. Perry was the one who introduced Clark to Trump.

On December 26th, Perry texted, Mark you should call Jeff. I just got off the phone with him. And he explained to me why the principal deputy won't work especially with the FBI. They will view it as not having the authority to enforce what needs to be done.

Meadows responded I got it. I think I understand. Let me work on the deputy position.

And Perry replied, roger. Just sent you something on Signal.

(END VIDEO CLIP) NOBLES (on camera): And congressman Scott Perry's power here in Washington is on the rise. He was recently elected as the chair of the House Freedom Caucus, this is the most conservative sect of Republican members of the House. And should the Republicans take the majority in the fall, their power would only increase. Now, Perry did not respond to multiple requests from CNN to respond to our report. I did catch up with him outside the Capital on Tuesday to ask if he had any explanation for his communication with Mark Meadows. He only responded, heck no. Ryan Nobles, CNN on Capitol Hill.

CHURCH: And thanks for joining us. I'm Rosemary Church. More of our breaking news coverage live from Ukraine right after the break.

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UNIDENTIFIED FEMALE: As governments ramp up their health care spending, companies are investing in everything from robotics to artificial intelligence. And all this change is happening faster than many expected. In one survey, 35 percent of drug company professionals said the industry's digital transformation had accelerated by more than five years because of the pandemic. This with health care firm Roach (ph), he's betting that AI can help develop new medicines. Its chief executive told me, it's a turning point for the entire sector.

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