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Connect the World

U.S. Announces Troop Deployments In Eastern Europe; Russian Dark Money & Potential Sanctions; Strict Measures, Daily Testing Inside Olympics "Closed Loop"; China, Russia Tighten Partnership As Relations With The West Deteriorate; U.S. Offers Reward For Information On Iranian Cyber Actors; CNN President Jeff Zucker Resigns Effective Immediately; Atlantic Council; Hidden Money Threatens U.S. Security; Atlantic Council Russia Has $1 Trillion Hidden Abroad. Aired 11a-12p ET

Aired February 02, 2022 - 11:00:00   ET

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

[11:00:00]

BECKY ANDERSON, CNN HOST, CONNECT THE WORLD: Well, the Biden Administration has just formally approved new U.S. troop deployments to Europe. I'm Becky

Anderson; you are watching "Connect the World".

And you are more than welcome. Defend and deter the U.S. lay out its mission as it prepares to send 2000 troops to Eastern Europe. The Pentagon

says they will support NATO countries amid the standoff over Ukraine. Take a listen.

(BEGIN VIDEO CLIP)

JOHN KIRBY, U.S. PENTAGON SPOKESPERSON: As part of this commitment, and to be prepared for a range of contingencies, the United States will soon move

additional forces to Romania, Poland, and Germany. I want to be very clear about something. These are not permanent moves.

They are moves designed to respond to the current security environment. Moreover, these forces are not going to fight in Ukraine. They are going to

ensure the robust defense of our NATO allies.

(END VIDEO CLIP)

ANDERSON: Well, these troops are in addition to the 8500 U.S. forces already on heightened alert. This of course comes in with the Russian build

up near Ukraine's borders. These are the newest satellite images of Russia's activity.

And let's say significant deployments have been seen in neighboring Belarus and tents are being put up in Crimea. Well, a slew of correspondents few

covering this Natasha Bertrand is in Washington, Nic Robertson is in Moscow and Clarissa Ward this hour in southeastern Ukraine, and I'll get to you

shortly, Clarissa.

Let me start though with you Natasha. Why is it, is it clear, why is it that Joe Biden made this decision now to deploy these forces and move

others around in Europe?

NATASHA BERTRAND, CNN WHITE HOUSE REPORTER: Well, Becky, I think it's a reflection of the belief by the United States that things are not

deescalating in the region that a call between Secretary of State Antony Blinken and Russian Foreign Minister Sergei Lavrov earlier this week really

yielded no breakthroughs.

And the Russians have not delivered that response yet to the United States and NATO proposals to de-escalate tensions and to arrange certain security

commitments in the region that might assuage Russia.

So it's a reflection of the situation that is escalating really with new Mac's or satellite images showing that forces, Russian forces are building

up on the border still, that there is increased readiness among Russian troops in those areas.

And that there is no indication that Moscow intends to back down at this point, even amid all of this diplomacy. So after a lengthy meeting

yesterday with the Chairman of the Joint Chiefs of Staff here, Mark Milley and his Defense Secretary, General Austin, President Biden determined that

right now what is in the NATO's best interest and what is in our allies best interest is to shore up those troops on that Eastern flank because

they are feeling very anxious right now about Russia's moves.

And Pentagon Press Secretary John Kirby did say that this is also a message to Putin, that any moves on NATO itself will be fiercely resisted.

ANDERSON: Nic, is Putin listening? Is he watching? One assumes he is any sense of how Moscow and the man of the moment himself of course, the

Russian President will respond to these latest moves by the U.S.?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: I don't think we'll hear from him respond on it per se, certainly not in the short term. His

spokesman might have something to say about it tomorrow, we might hear something from the foreign ministry, that's always possible.

But the position that Russia has taken so far on the possibility of those U.S. troops coming. And now it seems that numbers will come. In the past

Russia has said that this is the United States escalating the tensions and not them escalating the tensions.

And I think that what we see from President Putin at the moment, are a couple of things. He has not made his mind up yet in which direction to go.

He does not have offered to him yet the things that he says are at the core of what he wants.

And his approach to this whole situation in the beginning has been to ramp up tensions and make demands. And it still appears that that's his position

that is not ready to de-escalate, that he is ramping up the possibility and capability and therefore the potential threat of an invasion.

And he will keep making the same statement about not getting what he wants so far, in the belief that somewhere somebody is going to offer him

something that will get towards that. And at the moment, there's nothing on the table that will you know, that goes as far as he wants.

And I think that's where we're at. Again it's a back to President Putin moment. He has yet to make a decision and that's what the United States is

really waiting for his full written response.

[11:05:00]

ANDERSON: Clarissa, what's the mood where you are?

CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, Becky, I should say we haven't heard any formal response yet from the Ukrainian government

with regarding these troop movements.

When I interviewed the Foreign Minister recently, he actually said that he was pleased to see the U.S. take an assertive role in terms of at that time

announcing that 8500 troops would be on heightened alert.

And he said that, you know, the only way to deal with President Putin is never to appease, but always to sow strength, because that's what he

respects. At the same time, Ukrainian leadership has been very vocal about its disagreement with the U.S.'s assessment that an invasion may possibly

be imminent; they simply do not believe that to be the case.

Or perhaps they're in denial, or perhaps they willingly do not want to see that kind of messaging going out because it panics people.

But when we were on the frontlines the last couple of days, talking to people in the city of Mariupol, which by the way, would be one of the first

to know if there was any kind of a Russian invasion, we found that people were remarkably relaxed, and did not believe that any kind of war was

imminent, take a look.

(BEGIN VIDEOTAPE)

WARD (voice over): This is Ukraine's first line of defense if Russia decides to invade, and it is basic, half a dozen soldiers in snow covered

trenches, no sign of heavy weapons. Russian backed separatists are just half a mile away.

WARD (on camera): --every day. He's saying that every night there's fighting once it gets dark.

WARD (voice over): These front lines have been frozen for years; a Russian offensive would change that in an instant. But the alarm in Washington is

not shared here.

WARD (on camera): What's amazing to see is that despite the buildup of tanks, and heavy weaponry on the Russian side of the border, which is less

than 20 miles from here, here on the Ukrainian side, there's no sense at all that anyone is preparing for an invasion.

WARD (voice over): The sergeant here as we not give his name. He says he doesn't expect conflict, but he is prepared. Our commanders told us that we

must be alert, he tells us, and we are ready to meet guests from Russia.

WARD (on camera): What kind of weapons do you have at this position? Do you have any heavy weaponry? I don't see any but I just want to make sure.

WARD (voice over): You don't need to see. And the enemy doesn't need to see he says, but we have everything. What they don't have here are many layers

of defense. Driving from the front we see just a handful of checkpoints.

If the Ukrainian army can't hold this area, Russian forces could reach Mariupol, a port city of half a million in hours. Despite the threat life

here goes on much as normal. At the local market stalls are open and the shelves are full.

I'd love to know if you think that there will be a war --. We don't want more, we have children and grandchildren, Natalia says and there won't be

war. We believe that. Some like - say that America is exaggerating the threat. No, there will not be a war, he says. It's only Biden who thinks

this.

WARD (on camera): It's interesting talking to people here nobody seems to be remotely concerned about the prospect of an imminent invasion.

WARD (voice over): These people are no strangers to war, all around Mariupol the hollowed out remnants of villages destroyed and abandoned by

fighting between Ukrainian forces and pro Russian separatists.

But whether moved by denial or disbelief, these soldiers and the people they're protecting don't expect history to repeat itself. Now they wait.

And they watch and they hope.

(END VIDEOTAPE)

WARD: The U.S. has been sending a steady stream of weapons to Ukraine, including those much coveted anti-tank Javelin missiles. But under the

rules of the current ceasefire agreement, those missiles and heavy weaponry cannot be moved to the frontlines.

And Becky that potentially could present a significant challenge for Ukrainian soldiers in those frontline positions if Russia were to launch

some kind of a lightning offensive, Becky.

ANDERSON: Clarissa Ward is on the ground for you in Ukraine. Well, you're watching "Connect the World" from our Middle East programming hub here in

Abu Dhabi. I'm Becky Anderson for you. It is just before 10 past eight in the evening here.

[11:10:00]

ANDERSON: Still ahead the prevalence of Russian dark money around the world and how it complicates possible sanctions, more on that this hour. Plus

China's zero COVID strategy has created an Olympic bubble inside Beijing. How effective is this strategy, we are live on the ground for you. This is

CNN.

(COMMERCIAL BREAK)

ANDERSON: The opening Ceremonies until Friday, the Winter Olympics competition actually began today as it always does with preliminary rounds

of mixed doubles curling. So did the Olympic torch relay basketball star Yao Ming help kick things off today?

The three day relay is shorter this time around due to COVID. Meantime, Beijing reported just two new COVID cases, officials created what's called

this closed loop to help protect Olympic athlete's coaches and support staff from the virus.

Still, dozens of infections have been reported from within. Well, Selina Wang is inside that Olympic bubble. While David Culver, my colleague is on

the outside, both are sharing what it's like to live in what is now a divided city. Have a look.

(BEGIN VIDEOTAPE)

DAVID CULVER, CNN CORRESPONDENT (voice over): Is together for a shared future. It's a nice sentiment. But daily life in the Chinese capital is far

apart from the Olympic enclave within it. And absolutely nothing is shared between the people that inhabit the two worlds.

Too great is the risk of Omicron for China as it tries to maintain its zero COVID policy. In the week leading to January 30, 237 symptomatic infections

were reported in the country of 1.4 billion people.

Meanwhile arrivals testing and the daily screening of games participants has already registered around 200 positive results.

CULVER (on camera): The closed loop system means those Olympic personnel who are visiting from other countries won't be able to freely wander and

check out some of the iconic tourist sites like this one, the Forbidden City. For them, it is truly forbidden.

SELINA WANG, CNN CORRESPONDENT (on camera): Instead for athletes, organizers and us journalists inside the closed loop, Beijing has become a

series of bubbles, our hotels, the sporting venues and places like this media center are as much as the city has to offer.

WANG (voice over): There are even literal walls, security blocking us from freely moving about where COVID test every day outside the hotel.

WANG (on camera): Technology takes the place of many loss interactions. Here at the media center, a robot serves our food. And there's a robot

bartender mixing and serving our drinks.

WANG (voice over): Only a limited number of Beijing's have joined our closed loop to look after in transport all the people connected to the

games. And they too will need to stay separate from family and friends for weeks quite a sacrifice as the Lunar New Year holiday overlaps with the

Olympics.

[11:15:00]

WANG (voice over): But as COVID has disconnected Beijing from the international event it's hosting, it has also disconnected the people here

from the rest of their country.

CULVER (on camera): And normally, during the Lunar New Year holiday major cities like Beijing, they're empty, all the folks who live here going back

to their home provinces. But this year because of the outbreaks happening all over China, they're asking folks to stay put. So you have crowds like

this gathering at some of the more popular spots.

CULVER (voice over): Crowds that won't get to be there as the medals are contested and won, no sporting tickets are on sale. Instead, the government

will issue some to a lucky few.

CULVER (on camera): Beijing 2022 is a tale of two cities, the hosts.

WANG (on camera): And their guests so close. But so far, for CNN, I'm Selina Wang, inside the Olympic closed loop.

CULVER (on camera): And I'm David Culver on the outside Beijing, China.

(END VIDEOTAPE)

ANDERSON: Let's bring in David who, of course was part of that report joining us from Beijing in China, the city has had fewer COVID cases last

month and inside the Olympic bubble.

What's it like on the outside now that we are getting so much closer to the games to all intents and purposes, they kind of started today with that,

with that winter curling?

CULVER: Right. And actually, my team and I just a few hours ago went to check out some of the rehearsals from a distance because as you point out,

we're on the outside.

And that's made very clear by the many barriers between us and those who are on the inside, that point where you saw Selina and I Becky standing,

probably about 40 feet apart, basically as close as you can get.

And that's probably going to be pushed back even farther going forward as these games officially get underway on Friday. But the mood here, really

you see a lot of folks who are still trying to partake a little bit in it, but they're feeling very disconnected just because of the obvious barriers.

And the real concern with these cases. It may not sound like a lot. I mean, you're talking about single digits too reported most recently just in

Beijing. And yet there is a massive reaction that comes with even just one case, because of this zero COVID policy that we've been talking about one

case is one too many.

And so what do we see even not too far from Olympic Park, but a few communities going back into the sealed off lockdown mode. And those

communities will stay that way until they're deemed safe.

And we'll be able to reopen. This of course all transpire in during what is perhaps the most important holiday, the Lunar New Year, what is normally a

major travel holiday. Folks, of course, being advised in some cases ordered to stay put this year until you have just really a subdued celebration for

the Lunar New Year.

And I would say there's still hope but really, that disconnect from the pride and spirit so far of the Olympic Games, perhaps that'll change as the

competition gets underway officially on Friday.

ANDERSON: Yes and oftentimes it does. There's oftentimes a lot of news in the run up to these events. And then the games themselves take over.

The backdrop here, the presidents of Russia and China are facing deteriorating relations with the United States on Friday, both men will

come to face to face as the Russian President supports the Chinese President in being present for the opening of these games. What can we

expect?

CULVER: I apologize for the delay there, Becky. I've have intermittent service there with our IFP, but you're asking about I believe President Xi

and President Putin coming together.

By the way we deal with the intermittent service and the folks coming in as part of the media are likewise starting to feel the interruptions that

sometimes you deal with here being on this side of the Great Firewall, it's speaking of another divide.

But as far as President Xi and President Putin coming together, this can be their 30th meeting. And it's one that's getting a lot of attention in state

media. And the optics are unmistakable. You've got to look at this from the world stage perspective.

In many ways, they're coming together in defiance of the West. Of course, this is amidst the Ukraine crisis that's going on. Nonetheless, President

Putin still makes it clear that he is going to be here physically in person.

On Friday, he'll be taking part in the opening ceremonies. In many ways it's a repaint of what President Xi did back in 2014, by going to Sochi for

the opening ceremonies of the Winter Games there.

And these two, you know, they have a lot of interesting back and forth that have been playing out over recent years over the 38 times they've been

together.

And there's a very cozy relationship that's certainly portrayed in state media, and in the images, everything from taking in a hockey game together

to making pancakes to even on a sunset boat tour. So they're putting forward that this is a union of mutual trust that they're shoulder to

shoulder on many issues.

[11:20:00]

CULVER: And in many ways, they're also trying to show a united front, where you see a increasing divides in the West. And that's certainly how they

portray it. And it's a warning for them also for countries that may look to the U.S. for support.

And we saw this with what they portrayed to be the disastrous withdrawal from Afghanistan, of the U.S. And China, certainly seizing on that

opportunity and trying to show the rest of the world hey, looks; this is what happens when you rely on the United States.

And they also try to not so set away, send that message over to the east of us to Taiwan and the self-governing democracy there to say is careful who

you rely on. And so that's why they're monitoring the situation in Ukraine very closely.

But also they want to show that there is a possibility of a new world order. And these two leaders, two strong men coming together, trying to

show that united force, it's unmistakable to look at this.

And then even Becky, compare it to 2008, I was going back through some of the images. We saw then, at the time, President Bush very warm with then

Vice President Xi, it is a totally different time, 14 years later.

And you will certainly not see any of those images, because there is of course, a diplomatic boycott from the U.S. and many others.

ANDERSON: Yes, absolutely. I mean, it couldn't be more different the images, then and now, David, it's a pleasure. Thank you. Well, this Friday,

Austria becomes the first Western democracy to mandate all adults be vaccinated against the Coronavirus.

As the new law goes into effect other European countries are watching closely to see such mandates would work or how such mandates would work for

their population.

This is questions of course arise about the legality of such a sweeping action. Isa Soares with the details for you.

(BEGIN VIDEOTAPE)

ISA SOARES, CNN CORRESPONDENT (voice over): In a small town in northwestern Austria, one mother of six says she plans to soon live outside the law.

KATHARINA TEUFEL-LIELI, AUSTRIAN OPPOSED TO VACCINE MANDATE: We have done a lot I think to protect the people who are at risk. But solidarity stops for

me where it concerns one's own body.

SOARES (voice over): The 49 year old harpist, she won't bow to pressure from the Austrian government as the country becomes the first in Europe to

mandate vaccines for adults nationwide. Starting Friday, a phased rollout begins.

First unvaccinated citizens will have the opportunity to get the jab. But by March 15, when compliance checks begin, those without vaccination

records or an exemption could face fines of up to 3600 Euros or just over $4,000 up to four times a year. Still, some residents have been preparing

to skip the new law.

TEUFEL-LIELI: There are ways to find hairdressers even, there are private meetings. There is actually already a parallel society. It is there

already, it is already being built up.

SOARES (voice over): A parallel society built on anti Vax sentiment, after failed attempts to stop what's imminently coming into force. Since

November, tens of thousands have protested the mandate, as well as other COVID restrictions.

But government officials insist the new law is needed to help boost vaccination rates in Australia, with just over three quarters of the

population are fully inoculated against Coronavirus.

Now as Austria's mandate goes into effect, other European nations will likely look on hoping to close vaccination gaps of their own. In Germany

lawmakers are debating similar mandates to Austria hoping at least 80 percent of the population will soon have the jab.

In Italy vaccinations are required for those over 50 years old in, Greece for anyone over 60. But until this week, European nations had stopped short

of a mandate is sweeping as Austria's such strict measures previously reserved to a handful of nonwestern countries.

Across much of Europe, hospitalizations and deaths of East a seemingly less severe Omicron variant dominates. But infection levels are soaring,

stopping the spread still a central challenge of the pandemic, as one country puts Europe's most stringent mandate yet to the test. Isa Soares,

CNN, London.

(END VIDEOTAPE)

ANDERSON: Let's get you up to speed on some of the other stories that are on our radar right now. And Turkey says its military launched airstrikes

against Kurdish forces in northern Iraq and in Syria.

There's no information on casualties or on damage. Iraq condemned strikes as a violation of its airspace while offering cooperation to control border

security. The U.S. is offering a reward of up to $10 million for information on Iran's attempts to interfere in the 2020 presidential

election.

The State Department cites two Iranians who allegedly tried to sow discord and undermine faith in the electoral process. They face sanctions and

criminal charges. Well the Pentagon is boosting its support for the United Arab Emirates after a series of strikes by Yemen's Houthi rebels.

[11:25:00]

ANDERSON: It will send fighter jets and the destroyer USS Cole to the region. Now one of the attacks targeted UAE airbase where U.S. forces are

stationed these images are set to show the UAE shooting down a Houthi missile.

Well, humanitarian group Save the Children says it is devastated by the deaths of two babies from severe cold in a Syrian displacement camp. Medics

tell CNN the infants froze to death in a tent camp in Italy in southwestern Syria.

On Tuesday, my colleagues CNN's Arwa Damon showed us the heartbreaking reality of what life is like there for displaced families. And I just want

you to have a look at part of her reporting lest you missed it.

(BEGIN VIDEO CLIP)

ARWA DAMON, CNN CORRESPONDENT (voice over): This winter is among the harshest hits yet and decades. And for those living in camps, it's

unbearable. Just help us to stay warm, Dalal pleads, the kids are crying from the cold.

We've collected everything there is to burn even from the garbage from plastic to wood to anything else, but it's not safe. Idris was burnt when

his parents use this piece that's leftover from pressing olives for oil. I don't know what happened exactly, but the stove exploded, his father says.

Idris's skin melted as if you had poured acid on it. Burn injuries brought on by unsafe living conditions are common throughout these camps,

especially in winter.

(END VIDEO CLIP)

ANDERSON: As part of Arwa's reporting, the weather isn't just aggravating already unsafe living conditions. According to the World Health

Organization, the inability to stay warm is increasing or causing an increase in severe respiratory illnesses amongst kids, especially the very

little ones.

We've got a lot more on serious deep freeze and the toll it's taking on displaced families. If you'd like to help them then do head to

cnn.com/impact. There you will find a list of vetted organizations that you can donate to that is all@cnn.com or on our CNN app.

While you're watching "Connect the World", I'm Becky Anderson live from Abu Dhabi. Why dark money may be the blunt or may blunt the impact of

threatened sanctions against Russia's president and his inner circle. That's next with the eye opening details.

(COMMERCIAL BREAK)

[11:30:00]

ANDERSON: You're watching "Connect the World", I'm Becky Anderson to news now to report involving our very own network. CNN President Jeff Zucker has

just resigned after disclosing a consensual relationship with a colleague Jeff has said our company for the last nine years.

Let's bring in CNN's Chief Media Correspondent Brian Stelter, with more detail on this. Brian, at this point, tells us what we know?

BRIAN STELTER, CNN CHIEF MEDIA CORRESPONDENT: What we know is that this is a stunt newsroom. Jeff Zucker has been a larger than life figure in the

news industry, both inside but also outside CNN. And he has announced he's resigning effective immediately due to this relationship.

Here's the key part of the memo Becky that went out a few minutes ago. He said as part of the investigation into Chris Cuomo's tenure at CNN;

remember Cuomo was fired last month.

As part of that investigation, "I was asked about a consensual relationship with my closest colleague, someone I've worked with for more than 20 years.

I acknowledged the relationship evolved in recent years. I was required to disclose it when it began, but I didn't. I was wrong. As a result, I am

resigning today".

So Zucker in this memo does not name the executive, the colleague here but the colleague is Allison Gollust. She's been the Chief Marketing Officer,

the Head of Communications and Marketing for CNN.

And she has been Zucker's right hand woman in some ways, even Chief of Staff for many years. In fact, they worked together at NBC in the 90s and

the 2000s and then at CNN for the past almost decade.

She just issued a statement as well indicating she is staying with CNN. Here's what she said, "Jeff and I have been close friends and professional

partners for over 20 years. Recently, our relationship changed during COVID. I regret that we didn't disclose it at the right time".

Then she went on to say I'm incredibly proud of my time at CNN and look forward to continuing the great work we do every day. So Gollust and

Zucker, both acknowledging this romantic relationship, Zucker saying he should have disclosed it right away. And that is why he's resigning today.

Jason Kilar, the CEO of WarnerMedia says an interim leadership announcement will be made soon. Of course, all this is coming when CNN is being sold.

CNN the rest of WarnerMedia being spun off of AT&T merging with discovery in the next few months, so there could have been changes in the works

anyway.

But this sudden change is a real shock to the CNN newsrooms all around the world, as Zucker as I said, has been a larger than life figure. He's like,

been the rock for this news organization, sometimes loved sometimes not always loved but a decisive leader.

And I think if he were on the 9 a.m., there's a morning editorial call Becky, as you know, well, he's been missing from that call the past few

days, people started wondering where he was what was going on. I think he was on that call today.

He would have said, the news today is not about him. It's not about any individual. It's about you know, keeping the news going here at CNN, this

organization so much bigger than any single individual. So the news goes on, but today a sudden change at the top of CNN.

ANDERSON: He has been a fantastic leader during his tenure here. Thank you, Brian.

STELTER: Thanks.

ANDERSON: Let's get you to what is our top story today. For weeks now the U.S. UK and EU have been threatening harsh new sanctions against Russia to

deter it they say from invading Ukraine. Take a listen to the British Foreign Secretary speaking in Parliament earlier this week.

(BEGIN VIDEO CLIP)

LIZ TRUSS, BRITISH FOREIGN SECRETARY: This will be the toughest sanction regime against Russia we have ever had. And it is the most radical

departure in approach since leaving the European Union. Those in and around the Kremlin will have nowhere to hide.

(END VIDEO CLIP)

ANDERSON: Despite her warnings, effectively imposing those threatened sanctions may be easier said than done. The reason decades of loose

regulation and the courting of Russian investors has so deeply integrated them into British society would be quite frankly difficult to root out

their money in a world capital that is derisively called a London grad.

Well, the Atlantic Council says Russia has the world's largest volume of dark money hidden abroad about a trillion dollars. It estimates about a

quarter of that money is controlled by the Russian president himself, Vladimir Putin and his close associates.

Well, in examining potential impacts in the U.S. the Atlantic Council says this dark money can be exploited in multiple harmful ways including

espionage, terrorism, political manipulation and bribery.

Well my next guest is a Senior Fellow and Director of Economic Statecraft at the Atlantic Council. Julia Friedlander says Vladimir Putin and his

inner circle use the Western financial world as an element of their own power.

Julia Friedlander also served as Senior Policy Advisor for Europe and the U.S. Treasury Department, she joins me now via Skype. Can you explain for

our audience why you believe sanctions that have been laid out by the west maybe ineffective?

[11:35:00]

ANDERSON: And just explain, if you will, what evidence you have for the suggestion that so much of this money is one dark embedded in these systems

and quite frankly owned by President Putin and his close associates?

JULIA FRIEDLANDER, DIRECTOR OF ECONOMIC STATECRAFT, ATLANTIC COUNCIL: Sure, absolutely. And once again, thank you much for having me on. The sanctions

that have been proposed by the United States, the EU and the UK are unprecedented in scope.

And our departure from 2014 standard is where we attempted to provide some disincentive to associate yourself with the Kremlin. Now we're looking at

punishment for a potential incursion into Ukraine.

I would not argue that the sanctions that are being proposed if whether they target Russian financial institutions or banks or industry or

oligarchs as you're referencing are a bad option.

But as you do suggest, the international financial system and what a - London is a big part, have contributed to a very opaque network of shell

companies and offshore jurisdictions that make it very easy for the Kremlin and for associated oligarchies to move money at the speed of light.

And ultimately put them into a real estate in high jurisdictions such as London or New York. And so if you implement the sanctions, that's - just

the first step.

ANDERSON: Transparency International's identified well over a billion dollars' worth of UK property bought with suspicious wealth that originates

in Russia.

The UK allows shell companies to obscure the ownership of, of these properties, making them difficult to crack down, difficult to freeze assets

and travel bans have been floated by the UK. Foreign Secretary, is that a reasonable solution?

FRIEDLANDER: I think that's a reasonable solution to affect the lifestyle of individuals. That is, you can send your children to UK schools, right,

you can't travel there and shop on the London high streets. But again, the ultimate, ultimately getting down to cutting off his illicit financial

flows is less sexy than a sanction.

It is years of, of close work and coordination between intelligence services, financial regulators, for the private sector and NGOs such as you

mentioned, it is a long, painstaking process.

Now a lot of people will say, we need new laws, we need a novice person, and we need additional government oversight. When it comes down to it, it

comes from the top, it comes from the leadership of the UK of the U.S. from the European Union to say we are going to prosecute these individuals.

And from that prerogative, the implementing agencies will take direction and put the gears in train. Again, following the money is a needle in a

haystack. And you need the direction from above to say, OK, I'm going to expand the resources and time to put all the links together.

ANDERSON: Because the difficulty here is the so called dark money, which is planted sort of Russian influence throughout some significant western

countries, is to all intents and purposes, legal, correct?

FRIEDLANDER: Yes, and much of it is, and that's what's really kept us prioritizing it over time. Again, everybody wants to evade not everybody

wants to evade taxes, many people want to evade taxes. And many are abusing the same and using the same resources that make our financial market so

successful.

You can found a company a legitimate company in a short amount of time. You can at the same time you can found a shell company for a Kremlin oligarch

in the same amount of time. So again, we're essentially suffering from our own successes here.

Now, it's important to say why is Russian money actually a national security threat? OK. And that comes from, as you mentioned, the outsets,

use for using them in financial markets and other offshore jurisdictions to fund actions in Syria and Ukraine, even on UK soil using chemical weapons

in an attempted murder.

So these are actions that potentially could not be, could not happen if the resources weren't there in the first place. And again, Western financial

markets are also helping the Kremlin keep these assets away from each other and from moving them around in ways that would otherwise perhaps be

recouped by the Kremlin in specific point.

ANDERSON: With that, we'll leave it there. Thank you. Your insight analysis is really important. CNN Business has a full report on this. Exploring the

question, if the UK comes down on Russian oligarchs, could it be the end of London gradual, find that at cnn.com/business.

[11:40:00]

ANDERSON: Well, still ahead, a bomb shell lawsuit by a recently fired NFL Coach, the head coach is reverberating through the sports world today. Why

is accusing multiple teams of racial discrimination, that after this.

(COMMERCIAL BREAK)

ANDERSON: Well, it's been almost three years since flames tore through the famous Notre Dame Cathedral in Paris, severely damaging more than 850 year

old church with many fearing it couldn't be saved.

Authority say the fire was likely due to an electrical malfunction. Well, the cathedral a major tourism site is considered one of the finest examples

of French Gothic architecture left in the world.

And it felt like the whole world was watching and gasping when the iconic spire toppled. But Notre Dame which translates to Our Lady of Paris is

indeed being restored as promised by President Emmanuel Macron who said, there will be time for reflection and action.

And that's the focus of National Geographic's February issue, the magazine got full access to this elaborate effort to the ultimate fixer upper.

That's it from us, World Sports, up next.

END