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Zelenskyy Reports Some Success In Severodonetsk; Ukraine: No Plans To Withdraw From Severodonetsk; Biden Calls For Assault Weapons Ban After Shootings; Gunman Killed Two Doctors, Receptionist And Patient; Uvalde Mayor: "Negotiator" Tried To Call Gunman; U.K. Celebrates 70-Year Reign Of Queen Elizabeth; OPEC Agrees to Pump More Oil as Russian Output Drops; African Union Leader to Meet with Putin on Grain Exports; U.S., China Wrestle for Influence in South Pacific; Tree of Trees Honors Queen's Platinum Jubilee. Aired 1-2a ET

Aired June 03, 2022 - 01:00   ET

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


(COMMERCIAL BREAK)

[01:00:38]

MICHAEL HOLMES, CNN ANCHOR: Hello, and welcome to our viewers joining us all around the world. I'm Michael Holmes. Appreciate the company.

Coming up here on the program, enough, Joe Biden's harsh message for lawmakers standing in the way of effective gun control. From one prison to another, we'll hear from refugees who fled Russian shelling only to end up trapped in their cars for weeks on end.

And day two of Queen Elizabeth Platinum Jubilee. Why the long serving monarch will be a no-show.

UNIDENTIFIED MALE: Live from CNN Center. This is CNN Newsroom with Michael Holmes.

HOLMES: Day 100 of the war in Ukraine and President Volodymyr Zelenskyy says Russian forces now control about 20 percent of his country. Vladimir Putin's troops are making grinding progress in Ukraine's eastern Donbas region, while Ukraine reports success in its counter offensive to the south in the Kherson region.

President Zelenskyy says Russia has mounted a powerful attack on the city of Severodonetsk, one of the last Ukrainian holdouts in Luhansk. A senior Ukrainian military officer says the Russian shelling has become more powerful with new strikes almost every minute. Despite that, the officer says his forces have no immediate plans to withdraw.

CNN is not able to verify Zelenskyy's claim that more than 30,000 Russian soldiers have been killed since the invasion began. But that would be more casualties in the Soviet Union suffered during its 10- year war in Afghanistan. Meanwhile, towns and villages throughout the Donbas are under attack and Ukrainian resupply routes are in danger.

(BEGIN VIDEO CLIP) VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translation): The situation in Donbas has not changed significantly in a day. We have some successes in the battles for Severodonetsk, but it's too early to tell. It's the hardest area we have now.

(END VIDEO CLIP)

HOLMES: And joining me now from Canberra, Australia, Malcolm Davis, he's a senior analyst of Defense Strategy and Capability at the Australian Strategic Policy Institute. Always good to see you, Malcolm. Let's talk about Severodonetsk. What would be the significance of Ukraine using that in a territorial and tactical sense? What would it mean on the broader battlefield?

MALCOLM DAVIS, MILITARY ANALYST: Well, Russia supposedly has control of most of Severodonetsk. From Severodonetsk, they can increase pressure on Ukrainian forces in a salient that is an exposed pocket of Ukrainian forces, with the aim being to defeat those forces, or certainly encircle them from the north and the south. And the goal would be for the Russian forces to advance towards Kramatorsk, which is further to the west of Severodonetsk.

That would be a big victory for the Russians, if they could do that. For the Ukrainians, obviously, they need to hold that off and defend that salient. And that's going to become very challenging for the Ukrainians in coming weeks.

HOLMES: The Ukrainian military intelligence is predicting that Russian troops will increase air and missile strikes on critical infrastructure and try to seize the entire Black Sea coast of Ukraine all the way around to Transnistria, Moldova. Are Russian forces in your view capable of that right now or likely to be in the near future?

DAVIS: They're not capable of it right now. I think that they are seeking to essentially defend against Ukrainian counter offensives, particularly around Kherson. But if the Russians can hold off long enough to reintroduce new forces into the battle into that region, then potentially they could break through Kherson and advanced towards Odesa.

The objective in controlling that southern coast would be to essentially cut Ukraine off -- cut Ukraine's access off from its maritime trade and thus leave it a completely landlocked state. And that would make it very difficult for Ukraine to survive economically. It would also give Russia a greater ability to essentially control the flow of wheat coming out of Ukraine and thus that would give Russia great bargaining power in any international negotiations over the outcome of this conflict.

[01:05:11]

HOLMES: Yes. And to that very point, I mean, do you think Russia is now just wanting to consolidate put in place, you know, so-called facts on the ground so that any territory gained is territory kept in a future deal? Not that Ukraine would agree with that, but do you think that's what Russia is trying to do?

DAVIS: I think so. That's certainly what they want to be able to achieve to control the Donbas, which includes Donetsk and Luhansk, and control the south coast. That gives them an assured access to Crimea, which is probably one of the most important territories from Moscow's perspective to control. But it also gives them a position whereby they can then strengthen their forces over time, and ultimately launch follow on attack into Kyiv at some future date.

So any negotiated settlement that we sit down and talk to the Russians over must sow the seeds of a future conflict. It's certainly not going to mark an end to the war and return to the status quo ante.

HOLMES: Always a fascinating discussion. I wish we had more time, we don't. Malcolm Davis in Canberra, we'll check in with you again. Thanks so much.

DAVIS: Thank you very much.

HOLMES: Now, President Zelenskyy says Ukraine's military has held back Russian attempts to advance on Zaporizhzhia in the south of the country. That city is close to Russia and held territory. It is also the closest thing to a safe haven that many desperate Ukrainians can find. Some of those displaced have been living in their cars for weeks and have nowhere to go.

CNN's Melissa Bell with our report.

(BEGIN VIDEOTAPE)

MELISSA BELL, CNN CORRESPONDENT (voice-over): Alive and safe, but stuck in Zaporizhzhia. Some of the families that fled the Russian bombings of southern Ukraine. Others have just found themselves on the wrong side of a line that has hardened. Some of these families now living in their cars have been here for weeks.

Olina Babak (ph) came from the Black Sea town of Skadovsk to buy medicine for her elderly parents. She's now living with others in the open air.

Look, she says, he's just had surgery. My husband's without a leg. This grandmother is recovering from a stroke.

I can hardly sit, she says. My legs are swollen. Can I just get back to Kherson? Or is this some kind of cruel joke? Please, just let me die in Kherson, at home.

Some of the families bringing their anger to Zaporizhzhia's regional administrative building.

UNIDENTIFIED MALE: What's the problem? Why?

BELL (voice-over): Like Alexei Smilov (ph) who fled Mariupol with his wife, but has had no contact with the rest of his family for three months. UNIDENTIFIED MALE: There you still stay in Mariupol. And during three months, I don't have any contact. What happened with my father, with my sister? I like to come back and help. I like brings them to Ukrainian.

Marina Notanova (ph) who's in charge of social services for the greater Zaporizhzhia region says humanitarian aid has been hard to bring because her teams to the south of the city are now without communications. She tells us that it will also be necessary to tell those trying to return of the dangers they face.

It's very dangerous there, she says. So this will be discussed with them at this new filtration camp, to find out why they want to go and whether they understand the risks.

She says that beyond the water already being provided here, there will soon be a medical center, showers and a room for mothers and children. For now, these families wait. Just hungry to get home.

Melissa Bell, CNN, Zaporizhzhia.

(END VIDEOTAPE)

HOLMES: Now if you would like to safely and securely help people in Ukraine who might be in need of the very basic things like shelter, food and water, just go to cnn.com/impact You're going to find a lot of ways there that you can help.

The U.S. President imploring Congress to do something, anything about gun control after a spate of high profile mass shootings. In a primetime address, Joe Biden asked, quote, how much more carnage are we willing to accept? After walking down a hallway lined with candles representing victims of gun violence, he called for a ban on assault weapons and short of that, raising the purchase age for them from 18 to 21.

President Biden also wants stronger background checks and so-called red flag laws. He reminded Americans that guns are the number one killer of children in the U.S. more than car accidents, more than cancer.

(BEGIN VIDEO CLIP)

[01:10:10]

JOE BIDEN, PRESIDENT OF THE UNITED STATES: Over the last two decades, more school aged children have died from guns than on duty police officers and active duty military combined. Think about that. More kids than on duty cops killed by guns, more kids than soldiers killed by guns. For God's sake.

How much more carnage are we willing to accept? How many more innocent American lives must be taken before we say enough, enough?

(END VIDEO CLIP) HOLMES: Now, despite polls showing a majority of Americans favor stricter gun laws, it remains to be seen whether the President's emotional appeal for common sense gun reforms can sway any Republican senators, because that's where the roadblock is. CNN's Kaitlan Collins reports from the White House.

KAITLAN COLLINS, CNN CHIEF WHITE HOUSE CORRESPONDENT: Yes. President Biden delivering this rare evening address at the White House. But it came after he was briefed on three separate shootings within just three weeks. And the President clearly fed up with the violence that he's seen taking place in the United States after coming face-to-face with a lot of the victims' families.

The President using the word enough several times throughout his speech, saying it was enough carnage that has happened that there is time for change. And where he thought that change should happen is in Washington. And you saw the President repeating a lot of the lines he's drawn before, when it comes to guns, saying that there should be a ban on assault weapons, calling for universal background checks, new red flag laws, also gun safety storage laws talking about that aspect as well, which something that has been part of those negotiations on Capitol Hill.

But you also sensed a part of realism in the President's remarks, because when he talked about this ban on assault weapons that he wants to see reinstated, you also saw the President say, if that's not going to happen, they should at least raise the age of which you can purchase one of those assault weapons from 18 to 21. The President even pushing back on criticism that you've heard from Senate Republicans as recently as this week saying, well, it's different because they can be 18 years old.

And in the military, the President said he views that differently, because those of course are 18 year olds who are trained by some of the best people in the military, on how to use those weapons. And it's a different dynamic, he argued. And of course, his audience here was not just talking about what America -- the American people have been through seeing this violence, seeing this carnage, but also those negotiators on Capitol Hill.

As the President was using the words that victims' families in Texas, in Uvalde, Texas had used to him the words do something, he was saying he was giving that message to Congress.

Kaitlan Collins, CNN, the White House.

HOLMES: Now on Thursday, the House Judiciary Committee approved wide- ranging gun reforms along party lines. Its chairman says he hopes after all these mass shootings at this time might be different. We say that every time, don't we? And that the U.S. Senate will do the right thing. At least 10 Republican senators would need to vote with Democrats to pass new gun laws, and of course, that as always remains an unlikely prospect.

(BEGIN VIDEO CLIP) JERRY NADLER, U.S. HOUSE DEMOCRAT: The need is obvious. Tulsa, Uvalde, Tree of Life synagogue, mass shooting after mass shooting. We're the only society on Earth where we -- the parents have to compare the DNA with -- to the bodies of their children because they're unrecognizable.

And yes, there's mental health issues. That there are mental health issues in every country. Don't tell me that Americans are thousands of times more mentally ill than people in other countries. There is only one difference and that is that this country is a Washington guns.

(END VIDEO CLIP)

HOLMES: New details, meanwhile, emerging about the mass shooting at a hospital complex in Tulsa, Oklahoma that claimed the lives of two doctors, a receptionist and a patient. The gunman has been identified as Michael Louis. Police say he'd liked -- other gunman have used an AR-15 style semi-automatic that he had legally purchased from a gun store the same day as the shooting just a couple of hours before as well as a pistol he bought from a pawn shop on Sunday.

And Louis had undergone back surgery a few weeks ago and complained of ongoing pain for which he had sought further treatment. And then on Wednesday, he entered a physician's building and shot dead his surgeon Dr. Preston Phillips. Police explain the likely motive.

(BEGIN VIDEO CLIP)

CHIEF WENDELL FRANKLIN, TULSA POLICE DEPARTMENT: We have also found a letter on the suspect, which made it clear that he came in with the intent to kill Dr. Phillips and anyone who got in his way. He blamed Dr. Phillips for the ongoing pain following the surgery.

(END VIDEO CLIP)

HOLMES: And these are the other victims who may have gotten in his way. From left, William Love, a patient at the clinic.

[01:15:06]

Along with Dr. Phillips, you see there, the gunman killed receptionist, Amanda Glenn, as well as Dr. Stephanie Husen, who on the far right there who was a sports and internal medicine specialist.

Now the Tulsa shooting comes as more of the 21 victims of last week's elementary school massacre in Uvalde, in Texas are being laid to rest. More questions being raised about the police response and who was actually receiving information about what was happening inside the school.

CNN's Ed Lavandera with more on that.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN SENIOR U.S. NATIONAL CORRESPONDENT (voice-over): As families mourn, the investigation and search for answers deepens into the delayed police response to the mass shooting in Uvalde.

ROLAND GUTIERREZ (D), TEXAS STATE SENATOR: I want to know specifically who was receiving the 911 calls.

LAVANDERA (voice-over): Texas State Senator Roland Gutierrez is raising questions. He says he was told by the Commission on State Emergency Communications that 911 calls were directed to the city police, and it's unclear if that crucial information was relayed to the school district's police chief, who was the incident commander.

GUTIERREZ: The LAPD was the one receiving the 911 calls for 45 minutes while officers were sitting in a hallway for 19 officers were sitting in a hallway for 45 minutes. We don't know if it was being communicated to those people or not.

LAVANDERA (voice-over): The Uvalde Police Department and the Commission on Emergency Communications have not yet responded to see CNN's request for comment. Local officials continue to dodge questions including District Attorney Christina Mitchell Busbee, who wouldn't speak to CNN this morning, escorted to her car by security.

SHIMON PROKUPECZ, CNN CRIME AND JUSTICE CORRESPONDENT: There's a lot of information that needs to come out.

LAVANDERA (voice-over): This as new details emerge about a fourth grade teacher at Robb Elementary, who was on the phone with her husband and officer with the school district's police department before she died. The New York Times is reporting that Eva Mireles was in her classroom with the shooter speaking to her husband, as he was forced to wait outside the building with his unit.

"She's in the classroom and he's outside. It's terrifying." Uvalde County Judge Bill Mitchell who spoke with deputies tells the paper. Mitchell told The Times he doesn't know exactly what was said or if her husband shared any details about the call to his supervisor in charge of the scene. But as the communication and decision making by police is called into question, this conversation suggests at least one person had access to real-time information from an adult in the classroom. It took responders 80 minutes to enter the classroom from the time they received the first call.

Uvalde's Mayor Don McLaughlin says he rushed to the staging site the day of the shooting and was placed in a room with someone he referred to as a negotiator who he says tried to call the gunman but did not get through.

DON MCLAUGHLIN, UVALDE TEXAS MAYOR: I wasn't there at the initial but at the moment, he was in that classroom. They were trying to get numbers and call. They tried his heavy number they could find.

LAVANDERA (voice-over): McLaughlin does not believe the negotiator was aware of any 911 phone calls from inside the classroom.

MCLAUGHLIN: While I was there, you know, I did not hear the 911 calls. I can assure you had we have been aware of it, or I would have been aware of it. I would have been screaming. (END VIDEOTAPE)

LAVANDERA: The Texas Department of Public Safety says it will no longer answer questions about the investigation directing all questions to prosecutors here in Uvalde. But as you've seen, they're not talking. State Senator Roland Gutierrez says he's hoping to get a updated report from state investigators on Friday. But it's not clear that that's going to happen. And the senator says he's worried that there's a push to delay release of information in the hopes that attention on this story passes.

Ed Lavandera, CNN, Uvalde, Texas.

HOLMES: Now what seems like an endless cycle of mass shootings here in the United States certainly doesn't show any signs of slowing down. Since the beginning of the year, there have been 233 mass shootings nationwide, according to the Gun Violence Archive. And 20 of them just since Uvalde, with 105 people shot and 17 killed. Just think about that.

CNN and the Archive define a mass shooting as one that injures or kills four or more people not including the shooter.

Still ahead, crowds of royal watchers were thrilled to see Britain's Queen Elizabeth as she kicked off her Platinum Jubilee. We'll take a look back at all of the celebrations on the day. That's coming up.

Also, we'll visit other nations honoring the Queen 70-year reign with festivities of their own. We'll have all of them after the break.

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[01:22:02]

HOLMES: Some disappointing news amid the pomp and pageantry of Queen Elizabeth Platinum Jubilee. Buckingham Palace says the 96-year-old monarch experienced what they call some discomfort during Thursday's birthday parade, and will not be attending Friday's Main Event at St Paul's Cathedral. But the service of Thanksgiving marking the Queen's 70 years on the British throne that will go on.

The Royal family including Harry and Meghan, the Duke and Duchess of Sussex, they're all expected to attend. Prince Andrew will miss the event after sources say he tested positive for COVID-19. The service will be followed by a lunch reception at Guildhall.

The first day of Queen Elizabeth's Platinum Jubilee, a roaring success. Royal watchers were thrilled to see their monarch on Thursday as the trooping the color ceremony kicked off four days of celebrations. Later in the evening, her Majesty took part in a beacon lighting ceremony from Windsor Castle. Thousands of beacons were also satellite across the U.K. and the Commonwealth.

CNN's Max Foster with a look back at the day's festivities.

(BEGIN VIDEOTAPE) MAX FOSTER, CNN ROYAL CORRESPONDENT (voice-over): A monumental moment in history. One we won't see again in our lifetimes. Queen Elizabeth II mark 70 years of service and just a couple of years away from being the longest reigning monarch in world history.

To the all enjoy a thousands of her supporters who came from all corners of the globe to witness this once in a lifetime event.

UNIDENTIFIED FEMALE: I just love the Queen. She served so selflessly for the last 70 years, dedicated her life to the country. I'm so grateful to her for that. I'm so proud of it, you know, so just wanted to come over and say thank you, really. So this is me just saying thank you to her for her service.

UNIDENTIFIED MALE: I think it's a once in a generation type of event and to be able to be here is just amazing. And I can tell you, the appetite back in the U.S. for not only this celebration, but the Royal family is through the roof.

FOSTER (voice-over): A special trooping of the color military ceremony, kicking off the four-day long celebration. And even Seamus, the mascot dog of the Irish Guard. Camilla, Duchess of Cornwall and Kate, Duchess of Cambridge are the first Royals to arrive with a Queen's great grandchildren. Closely followed by Prince's son, Prince William and Prince Charles.

The heir to the throne stepping in for the Queen at the parade ground as he will each time she's unable to attend an event due to her mobility issues. All part of the gradual transition to his monarchy that comes next.

Prime Minister Boris Johnson amongst the guests nicknaming her, Elizabeth the Great. Indeed the Queen of 50 nations had Jubilee was also commemorated across the Commonwealth with the lighting of beacons in New Zealand, Fiji and India.

[01:25:11]

But the event was also marked by the absence from the symbolic balcony appearance of Prince Andrew, Prince Harry and Meghan, no longer working royals. And Prince Andrew having contracted COVID. And despite concerns about her state of health, the Queen beans (ph) during the fly pass with her loyal subjects cheering her every move.

Perhaps the same can't be said for her great grandchildren. Their presence also a symbol of the passing of the baton. One that was passed to her back in 1953. And now she's preparing to hand the baton to her next in line.

Max Foster, CNN, Buckingham Palace.

(END VIDEOTAPE)

HOLMES: Now as Max just mentioned, their celebrations in honor of Britain's monarch aren't just being held in the United Kingdom but around the world. British forces based in Cyprus holding a beacon lighting ceremony that included a charity concert by soldiers and local musicians. And Australia's Prime Minister liking the Commonwealth beacon in Canberra as the government announced an island in the nation's capital will be renamed Queen Elizabeth II.

CNN'S Larry Madowo and Paula Newton take a look at other nations specifically Kenya but first Canada on Britain's longest reigning monarch, as well.

PAULA NEWTON, CNN CORRESPONDENT: The Queen's Platinum Jubilee was celebrated not just in Britain, but right around the world and Commonwealth countries like here in Canada. 1,500 beacons like the one behind me lit in Commonwealth countries, including of course here in Canada.

Now listen, the Queen has often said that she considers Canada a second home to her and the Royal family. She has visited here more than any other country in her realm. And certainly it's a reciprocal relationship many here in Canada, certainly respecting, admiring, even loving the Queen, no more so than today, the day, the occasion of her Jubilee.

I want you to listen now to some of the comments, but also some of the ambivalence of what is to come later in the future of this Royal family. Listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I love the Queen. I'm, you know, I've always -- I can remember as a kid going to see her on the train up in Torrance, in Muskoka. And, you know, it was always so much fun.

NEWTON: These are as a little girl.

UNIDENTIFIED FEMALE: I did.

UNIDENTIFIED MALE: It'd be nice if Canada moved on to the next step. And, you know, created its own independence and be Canada as a whole rather than, you know, have that monarchy still be a thing, because what follows the Queen kind of seems messy. So we'd rather -- I feel like it'd be important for Canada to be its own country and have its own leader.

UNIDENTIFIED MALE: Yes, I disagree. Because I like the, like the unity that comes with the Commonwealth. Like we all are, like, we all have this shared history because of the Queen. But it's not like we aren't like bound to that, like we can be our own nations, but still have the title or history. I don't know. I like the Queen.

(END VIDEO CLIP)

NEWTON: So as much as people are celebrating here in Canada with the Queen, there is also a reality that people are wondering what comes next. The Queen herself said as much understatement looking towards the future. Prince Charles was here in Canada just a few weeks ago, alluding to how the monarchy may need to change, especially when it comes to any kind of reconciliation, especially with indigenous peoples here in countries like Canada.

But this was, in fact, an occasion for celebration, and certainly to continue that outpouring that so many Canadians have a for the service and the love of their Queen.

Paula Newton, CNN, Ottawa.

LARRY MADOWO, CNN CORRESPONDENT: Half a world away from the U.K., these kids in a remote part of Kenya --

UNIDENTIFIED MALE: Yes.

MADOWO: -- are wearing this virtual reality headsets that are taking them right inside Buckingham Palace. And Windsor Castle is a way for them to be a part of the celebration of the Platinum Jubilee because Queen Elizabeth has a special connection to Nyeri. This part on the foothills of Mount Kenya, she became queen while she was here at the ripe old age of 25.

Douglas Mwangi is the Queen's young leader, he won that award at the Queen in 2018. Why did you want to do this event for this village where you're from?

DOUGLAS MWANGI, YOUNG LEADERS AWARD RECIPIENT: The reason as to why we are doing this event, we want to expose these kids to the 21st century skills so that they can -- we hope that this will inspire them to take STEM-related career.

MADOWO: And what is it like to meet the Queen, because that must be really special?

MWANGI: Yes, yes, it was. It was very thrilling. Very, very exciting and part of ritual. I know it gave us a lot of credibility the work that we are doing.

MADOWO: Right, with (INAUDIBLE) which is an informal settlements in Nairobi. But one of the things they're doing here, they're lighting beacons of all around the world and the Commonwealth. And here they're going to be lighting a voice activated beacon which is part of the whole technology thing they have going here.

The Queen --

[01:29:45] DOUGLAS MWANGI, YOUNG LEADERS AWARD RECIPIENT: Yes, yes. It was. It

was very thrilling. Very, very exciting and on top of it all I know it gave us a look of credibility, the work that we are doing.

LARRY MADOWO, CNN CORRESPONDENT: Right. With Oasis Mathare which is an informal settlement in Nairobi. But one of the things they're doing here, the lights and beacons are all around the world and the commonwealth.

And here, they're going to be lighting a voice-activated beacon which is part of the whole technology thing they have going here.

The Queen has a special connection to Kenya as well. There are many people named Elizabeth here, including my own sister. So just one of the ways in which her reach really transcends the entire world.

Larry Madowo, CNN -- Nyeri.

(END VIDEOTAPE)

MICHAEL HOLMES, CNN ANCHOR: And CNN's coverage of the Queen's Platinum Jubilees begins in less than three hours from now with Max Foster at St. Paul's Cathedral. You can watch the celebration 9:00 a.m. London. That's 4:00 in the afternoon if you're in Hong Kong.

Coming up here on CNN NEWSROOM, OPEC says it plans a major boost in oil production. We'll see what impact it could or might not have on fuel prices in the months ahead.

Plus, the Kremlin yet to budge, despite the economic pain caused by international sanctions. We'll look into how much those sanctions are hurting average Russians.

You're watching CNN NEWSROOM. We'll be right back.

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HOLMES: Many countries are moving away from Russian oil since Moscow's invasion of Ukraine, and now OPEC is planning to increase its output to make up for at least some of that shortfall. It might not have much of an effect on fuel prices though.

CNN's Clare Sebastian explains.

(BEGIN VIDEOTAPE)

CLARE SEBASTIAN, CNN CORRESPONDENT: The decision by OPEC to compress the next three months of planned oil production increases into two months was a carefully constructed compromise. On the one hand, by not exempting Russia from producing its share of the planned increases as have been reported, it is keeping Russia in the OPEC Plus fold.

And on the other hand this does also give the U.S. some of what it wanted. The Biden administration has over the past few months been engaged in an intense diplomatic efforts to convince Saudi Arabia, OPEC's de facto leader, to pump more oil to help ease price increases for consumers.

That, of course, as the United States faces record high gas prices. The White House praised Saudi Arabia in a statement Thursday saying, "We recognize the role of Saudi Arabia as the chair of OPEC Plus and its largest producer in achieving this consensus amongst the group members.

But on the other hand experts say this may not actually ease oil prices much. One, because Russian production is already down by a million barrels a day according to Reuters. That's because of western sanctions.

That is even without the E.U. embargo agreed this week. So 648,000 barrels a day doesn't really make up that shortfall.

And two because with production falling, Russia clearly can't raise production to meet the new quotas. And therefore OPEC Plus as a whole is likely to under-shoot its planned increases.

[01:34:57]

SEBASTIAN: Still after months of staying the course, this was overall a significant turnaround and perhaps part of a reset in U.S.-Saudi relations.

Clare Sebastian, CNN -- London.

(END VIDEOTAPE)

HOLMES: Millions of people around the world are facing a potential food crisis because Russia has blocked tons of Ukrainian grain from export. Many African nations are especially vulnerable.

The head of the African Union is expected to meet today with Russian President Vladimir Putin about freeing up critical shipments of grain and fertilizer.

The U.N. warns up to 15 million people worldwide are at risk of hunger because of the conflict. And there are ongoing fears that the conflict could cut this year's harvest in Ukraine by half.

Both Russia and Ukraine are major grain producers and account for 19 percent of the world's barley. NATO secretary general says avoiding a global food crisis depends solely on Moscow.

(BEGIN VIDEO CLIP)

JENS STOLTENBERG, NATO SECRETARY GENERAL: The problems with getting grain out of Ukraine is not caused by our sanctions. It is caused by Russia's war, President Putin's war against Ukraine.

And therefore, the easiest way to get more graine out and to reduce the pressure on food prices is for President Putin to end the war.

(END VIDEO CLIP) HOLMES: New U.S. sanctions announced Thursday against Russia are aimed at luxury assets belonging to people close to Vladimir Putin. U.S. Treasury Department says it is targeting a number of specific yachts and aircraft associated with Russia's elite.

And the European Union has approved a sixth round of sanctions including removing one of Russia's largest banks from the international transaction network known as SWIFT.

Now despite all the sanctions and financial pain, Russia's economy is still holding up, in many cases better than expected although cracks have appeared which brings up the question, how much longer will it take for the sanctions to really bite or bite enough?

I'm joined now by Vera Michlin-Shapir, an expert on Russian economy and a visiting fellow at King's College London. Good to see you. You also wrote the book "Fluid Russia: Between the Global and the National in the Post Soviet Era". You see it there on your screen.

In some regards, the Russian economy is the second battlefront in this war in terms of the sanction and pressure they put on Putin. How vulnerable then is the economy as the impact of sanctions evolves and gross?

VERA MICHLIN-SHAPIR, EXPERT IN RUSSIAN ECONOMY: Hello, good morning Michael. So yes, indeed, we see that this is the second battlefront. And I think this is a good analogy because we see, A, Russia being hit by the most severe sanctions in world history. And it is not only sanctions, it is also this kind of voluntary boycott of western companies that are moving out of Russia and are cutting ties with Russia, doing reputational damage or just morally not accepting what Russia is doing in Ukraine.

And Russia is also hitting back. I mean the -- grain blockade that Russia is holding and it is a grain blockade and fertilizer blockade.

This is Russia hitting back saying well, if you are hitting us with sanctions, we are going to initiate this ripple effect of possibly a world hunger (INAUDIBLE) -- sanctions is looking for other partners like China to compensate the pain of the sanctions.

But we have to remember the Russian economy before the war was extremely integrated into the world economy. It was a very globalized economy. And that is why it is extremely vulnerable to these sanctions, although these sanctions are not going to take effect immediately. This is a longer term process.

HOLMES: This is the thing. I mean some of those sanctions have -- shutting down McDonald's or whatever -- that's thing. But longer term sanctions, the ones that really bite, what are biggest threats? Why areas of the economy could be most affected the soonest or are already being affected?

I mean we are talking things like spare parts and technology and on and on. MICHLIN-SHAPIR: Indeed. So I mean if we are saying in this world of associations and metaphors with warfare, this is like a time bomb right. I mean this is -- the timer has been set, we have an uncertainty when it would kind of explode and kind of take this whole equilibrium of Russian economy out of sync and into chaos.

But what we are seeing -- I mean look, we are seeing the most kind of vulnerable things right now. The whole economy is being impacted, yes, but not everything is being felt. The most vulnerable right now are the upper and the middle classes. Yes, these are the consumer goods. They still haven't felt disrupted but they will feel it and very quickly.

Then moving longer term, it is the Russian budget, right. It is the ability to sell oil and gas to consumers in the west because that fuels the Russian budget, and that makes -- that gives them the ability to prop for people in the society and create this kind of consent for this war.

[01:40:00]

HOLMES: Right.

MICHLIN-SHAPIR: And moving even longer term, yes, we are talking about the technological sanctions because spare parts, technology, Russia cannot build -- it cannot rebuild it's economy, it cannot rebuild its military if it doesn't have those technologies that it always bought from western countries and from other countries who will not sell it.

HOLMES: And that can lead to all sort of things too, factories closing down, unemployment, those sort of things, a lot of western stores are already closed, western products are off the shelves. Even Facebook and Instagram are blocked.

Has the fallout from this war began to hit street level Russians and their wallets? And could that cause them to react?

MICHLIN-SHAPIR: So we are seeing that it did hit kind of the middle and upper class. But we have to remember that these goods -- again, this is a time lengthy kind of process, because these goods are goods -- I mean technological goods yes. They are not goods that you buy every day.

So people know that they are more expensive and at some point it will run out, but right now they have what they have and, you know, they are making do with that.

So people are becoming poor, but they kind of they -- can kind of roll this ball further on. The thing is that also, in terms of kind of the psychology and the sociology of it, people are saying well, you know, sanctions are here but maybe they will -- you know, maybe they will be removed? Maybe companies will come back. Not all company said that they were moving forever out of Russia.

So the longer this process happens, the more people in Russia would understand, that they are really in this depressed, economic existence in the haul and I think that would make a change also in their minds.

HOLMES: And before we go -- to take that a little bit further given the economic consequences have yet to fully play out in many sectors. What could be the longer term perhaps even permanent damage done economically or for that matter societally?

MICHLIN-SHAPIR: Yes. So what happens in Russia right now is that you see the people really accepted Putin's lie. That he's like a force of nature, yes? He's somebody they can't really battle, they can't change anything. Even Russians really understood from the beginning that this is not a going in the right direction. This is completely wrong.

What they did -- they left the country, yes. they didn't feel that they could change this reality.

The thing is that I think moving forward, it is obvious that Russia that Putin is building right now -- this isolated, disconnected Russia has no future.

And the only hope we have, and the hope that we have for ordinary Russians is that they understand that this has no future. And at some point -- at some point they break out of this -- I mean I'm sorry this is kind of depressed reality, yes, where you have no control over your life and maybe do something to better their own circumstances.

HOLMES: Yes. It is a situation that is still very much unfolding, yet to play out in full.

Fascinating conversation, Vera Michlin-Shapir, thank you so much.

MICHLIN-SHAPIR: Thank you.

HOLMES: Well the south pacific becomes a battleground for influence between Beijing and Washington. Still to come on the program, Beijing tries to bring the region under his thumb and some island nations get caught in the middle we will discuss.

[01:43:15]

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HOLMES: The U.S. is calling out a number of countries for allegedly violating religious freedoms of their citizens. Secretary of State Antony Blinken spoke after the release of an annual report on into religious freedom.

He says the Taliban are using religion to deny basic rights to women and girls, that's in Afghanistan, of course. Blinken accuses Saudi Arabia of discriminating against non-Muslims. And Russia of sending people to jail for exercising religious freedoms.

Blinken also says China is committing genocide against religious minorities.

(BEGIN VIDEO CLIP) ANTONY BLINKEN, U.S. SECRETARY OF STATE: China continues its genocide and repression of predominantly Muslim leaders and other religious minority group since April 2017, more than 1 million Uighurs, ethnic Kazakhs, (INAUDIBLE) and others -- have been detained in internment camps in Xinjiang.

(END VIDEO CLIP)

HOLMES: It is a game of geopolitical chess in the South Pacific meanwhile and China just came up short in the latest round. This week Beijing failing to get what it wanted in it sweeping attempt to extend its influence in the region.

The U.S. and Australia are now racing to outplay China and make sure the strategic region stays out of its orbit.

For more we are joined by Ivan Watson in Hong Kong. So you know, so why are so many Chinese and Australian officials seemingly running off to make visits to small Pacific island nations these days?

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Quite simply they are competing for influence, Michael. This is remarkable. You have the two Wangs -- Wang Yi, the Chinese foreign minister and Penny Wong, the newly appointed Australian foreign minister on kind of competing trips seeking to curry favor with the governments of Pacific island nations.

(BEGIN VIDEOTAPE)

WATSON: To many outsiders, island nations in the South Pacific are a tropical paradise, exotic and remote. And yet the focus of intense diplomatic activity from China -- part of a Chinese push for influence that's turning the blue Pacific continent into a zone of geopolitical competition between China and its western rivals.

China's foreign minister has been leading a delegation on a whirlwind ten-day tour across the south Pacific, meeting face to face or virtually with officials from at least 11 different Pacific island nations.

Most of these countries' entire populations are dwarfed by even a small Chinese city.

WANG YI, CHINESE FOREIGN MINISTER (through translator): Do not be too anxious, do not be too nervous because the common development to the prosperity of China and all other developing countries would only mean greater harmony, greater justice and greater prosperity of the whole world.

WATSON: The last time great powers competed in the South Pacific was World War II when the U.S. And its allies fought a grinding island hopping military campaign against Japan.

Since the war, many Pacific islands still have close ties to the U.S. and its western allies. But in march, that status quo shaken with the leak of a secret security agreement between China and the Solomon Islands signed the following month. It allows the Solomon's government to call for help from Chinese police and armed forces. In May, the release of another proposed document, the Chinese Pacific island countries' common development vision. A sweeping vision slammed by the president of the Federated States of Micronesia.

In this letter, he accuses China of offering attractive economic assistance as part of a bid to take control of security, communications infrastructure and fisheries in the islands.

Just days after being sworn into her new job, Australia's foreign minister rushed to shore up western support for the region.

PENNY WONG, AUSTRALIAN FOREIGN MINISTER: And Australia will be a partner that doesn't come with strings attached, nor imposing unsustainable financial burdens. We are a partner that won't erode Pacific priorities or Pacific institutions.

WATSON: During his visit, China's foreign minister refused to take questions from independent journalists.

UNIDENTIFIED FEMALE: -- that no questions will be asked at this press conference.

WATSON: Prompting a boycott from reporters in the Solomon Islands like Dorothy Wickham.

[01:49:58]

DOROTHY WICKHAM, REPORTER: We wanted our government to remember that we were a Democratic society. I mean there in Parliament (ph) floated in democratic views by the people.

And if there was (INAUDIBLE) signing agreements with foreign powers then at least our people should be informed.

WATSON: Meanwhile the prime minister of Fiji has a warning.

FRANK BAINIMARAMA, FIJIAN PRIME MINISTER: Geopolitical point scoring means less than little to anyone whose community is slipping beneath the rising seas whose job has been lost to a pandemic.

WATSON: On Monday Chinese diplomats backtracked offering a softened vision of Chinese influence in the Pacific. Expect more visits from high-level delegations in the months ahead as foreign governments scramble to secure influence in the South Pacific.

(END VIDEOTAPE)

WATSON: Now Beijing has been quick to say that it has been pumping investment projects and assistance to some of these countries, under part of its belt and road scheme and that is something that is frankly welcomed. I mean these are economies that could certainly use help, particularly after economic downturn of the COVID pandemic.

And yet, you have leaders of these small countries that are saying they do not want to be treated as geopolitical playthings as pieces on some kind of a chess board.

They have this remarkable moment, Michael where the prime minister of Samoa, she said that the countries have basically been summoned to a meeting by the Chinese with the proposal for a regional agreement and she opposed it because there was an expectation that they should agree to it before they'd even been able to discuss it.

Meanwhile, we are hearing repeatedly from the leaders of these countries that one of their top priorities is climate change. And that's the Australian government, the newly elected Australian government is offering assistance with, saying that there has been a major policy shift in Canberra from the past conservative government, that they are now going to work, they are pledging to work on the issue of climate change.

Then you have Washington in the background kind of also scrambling to catch up here. It has been withdrawing somewhat, for example in the Solomon Islands where for nearly 30 years the U.S. downgraded its embassy to a consulate.

This year the U.S. Secretary of State announcing it will upgrade to embassy status there, Michael.

HOLMES: Yes a lot -- fascinating report there. Climate change a matter of life and death for many of those island nations.

Ivan, great stuff. Good to see you my friend. Ivan Watson there in Hong Kong.

All right, China successfully launching nine satellites into space on Thursday. Now they will help provide more accurate navigation for autonomous vehicles for Chinese carmaker Geely Auto. They will also support public welfare activities related to marine environmental protection, according to the Chinese.

With the launch, Geely joins SpaceX as the second major automaker to have an allied space business.

Still to come here on the program, Queen Elizabeth has planted hundreds of trees throughout the world during her 70-year reign.

Up next, how trees are playing an important role in her majesty's Platinum Jubilee. We will be right back.

[01:53:29]

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HOLMES: Well, as part of Queen Elizabeth's Platinum Jubilee celebrations, the Queen from Windsor Castle and Prince William from outside Buckingham Palace, both remotely taking part in the lighting of the Tree of Trees on Thursday night.

This magnificent sculpture stands as a message of hope, regenerations and sustainability. Trees, of course, very near and dear to her majesty's heart and in honor of her 70 years on the throne, the royal family has invited people around the world to plant a tree for the jubilee.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Trees have always been an important to the Queen. She has planted over 1,500 across the world during her reign.

UNIDENTIFIED FEMALE: Those trees that her majesty has planted are right around the world. You have commonwealth country from the Caribbean to Africa to Asia -- are all involved in celebrations.

There have been forests and canopies that are all linked together right around the world in her majesty's name.

THOMAS HEATHERWICK, TREE OF TREES DESIGNER: The platinum jubilee is an excuse to bring a country together and make a focal point that celebrates environment, and also literally changes the landscape of this country.

UNIDENTIFIED FEMALE: There are 350 different species of trees, that are all native to the British Isles. And each tree has got its own special millennium bucket, and then these trees will be distributed around the country at the end of the two week project.

HEATHERWICK: It will be 70 foot high, which happens to be the length of her reign. I wish I could say that was deliberately done. But I was also told that somebody in the palace has described this as being three giraffes high.

UNIDENTIFIED FEMALE: The metal is in in oil rigs. The aluminum has all be recycled. And at the end of this project the metals will be recycled again.

UNIDENTIFIED FEMALE: It's like It a once in a lifetime opportunity. You can't do this anytime. So there, it's really fun.

UNIDENTIFIED FEMALE: There are not many children who do this, and we want to save the planet, we want to help the planet with climate change and things like that.

DAN ROX, CEO, Queen's Green Canopy: We wanted to really highlight the vital importance of what we already have in the form of our ancient trees, and ancient forests.

And really, these are nature's crown jewels. So call to action is plant a tree for the jubilee.

(END VIDEOTAPE)

HOLMES: Wonderful idea. Thank you for spending part of your day with me. I'm Michael Holmes, you can follow me on Twitter and Instagram @HolmesCNN. I will be back with more news after the break.

[01:57:54]

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