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Connect the World

Liz Cheney Loses in Landslide to Trump-Backed Candidate; Abbas Accuses Israel of 50 Holocausts, Walks Back Comment; Severe Drought Drying up Colorado River, Drains Reservoirs; Kyiv: Ukraine Behind Three Explosions in Crimea; Diplomat: Iran Wants Compensation if U.S. Exits Deal; UK Inflation Hits 10.1 Percent as Bread and Milk Price Soars. Aired 11a-12p ET

Aired August 17, 2022 - 11:00   ET

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


[11:00:00]

(COMMERCIAL BREAK)

LYNDA KINKADE, CNN CORRESPONDENT, CONNECT THE WORLD: Hello, I'm Lynda Kinkade in Atlanta filling in for my colleague Becky Anderson. Welcome to

"Connect the World". The Republican congresswoman who says Donald Trump is dangerous for the U.S. and democracy has now lost her seat in Congress.

Liz Cheney was trounced in Wyoming's Republican congressional primary Tuesday, as voters rejected her leading role on the committee investigating

the January 6 attack on the Capitol. Cheney lost by nearly 40 points to Trump's preferred candidate, Harriet Hageman.

(BEGIN VIDEO CLIP)

HARRIET HAGERMAN, WYOMING REPUBLICAN NOMINEE FOR U.S. HOUSE: Wyoming has drawn a line in the sand that if we put you in power, you will be

accountable to us, you will answer to us and you will do what is in our best interest. And if you don't, we will fire you.

(END VIDEO CLIP)

KINKADE: Well, just because Cheney last don't expect her to disappear. She will remain in Congress and on the January 6 committee until the end of her

term in January. And CNN's Stephen Collinson says her anti-Trump activism has elevated her to a higher political and historical claim.

She's hoping to prove that in politics and honorable defeat sometimes confers more ultimate power than a simple victory. Well, Stephen Collinson

joins me now. Good to have you with us, Steven.

STEPHEN COLLINSON, CNN POLITICS SENIOR REPORTER: Hey.

KINKADE: So voters in the U.S. State of Wyoming turning on this Republican critic of Trump, a three term Congresswoman, she lost in a landslide. What

does her loss mean for Trump and his potential 2024 run?

COLLINSON: Well, I think what it shows is there's no place in the Trump Era Republican Party because that's still what it is, notwithstanding his

defeat in the presidential election in 2020.

There's no room for anybody that tells the truth about what happened in the Capitol Insurrection, if they want to have a political career. Liz Cheney

knew exactly what she was doing and the risks she was taking.

She already lost her number three leadership post in the House of Representatives Republican Party for taking on Trump and refusing to

whitewash what happened after the 2020 election when he basically tried to overthrow President Joe Biden's election win and she didn't back down.

And after joining the January 6 committee looking into the insurrection, she effectively sacrificed her political career in Congress, at least in

order to take on the former president.

But I think it shows that the ex-president is the hot favorite for the Republican nomination in 2024. And that's a campaign that he appears to be

itching to announce even before the midterm elections in November.

KINKADE: I was just looking at vision there as Steven of Liz Cheney giving what seemed to be a very well-rehearsed speech as the sunset in Jackson,

Wyoming last night, I just want to play some of that speech for our viewers.

(BEGIN VIDEO CLIP)

REP. LIZ CHENEY (R-WY): No house seat. No office in this land is more important than the principles that we are all sworn to protect. And I well

understood the potential political consequences of abiding by my duty.

Our republic relies upon the goodwill of all candidates for office to accept honorably the outcome of elections. And tonight, Harriet Hageman has

received the most votes in this primary, she won. I called her to concede the race, this primary election is over. But now the real work begins.

(END VIDEO CLIP)

KINKADE: The real work begins what exactly as she referring to Steven; will she continue on her crusade? How much impact will she have? What can we

expect from her?

COLLINSON: I think she will. Cheney gave I think what was probably the most stark, chilling warning yet the danger that Donald Trump poses to American

democracy and the constitutional republic that we've seen from any major U.S. politician.

She's already said that she's thinking about running for president in 2024. The issue there, of course, is that this result shows there's not much of a

lane for her as anything but a protest candidate in the Republican Party, the perhaps she could run simply to take on Donald Trump on the debate

stage and confront him.

I think you could come up with various scenarios where the rest of the party tries to even keep her out of the Republican primary, notwithstanding

the fact that she's exceedingly conservative and everything apart from her willingness to take on Trump.

Then there perhaps is the possibility that she could run an independent presidential candidacy, trying to siphon away anti Trump Republicans and

moderates from the former president in order to make it more difficult for him to win back the White House in a general election.

[11:05:00]

COLLINSON: I think that would depend on whether the candidate was President Joe Biden on the Democratic side or someone else. So the danger would be

that you would take away the anti-Trump vote and divide it and actually hurt Biden almost as much as you would hamper Trump's attempts to win the

White House. Perhaps if there was a much more liberal Democratic candidate that some Republicans would find it very difficult to vote for, there might

be an opening for her there, but I think we're going to have to watch her quite carefully.

KINKADE: Yes, I'm wondering, Stephen, just how splintered the Republican Party is right now, or whether Republicans will see what happened the Liz

Cheney and fall in line behind Trump.

And, of course, why isn't the January 6 committee the investigation into the insurrection and into Trump's lies over the election, having more of a

role in the way people are voting?

COLLINSON: Well, I don't think Republicans want to accept the fact that Donald Trump actually did something wrong. They still support him, many,

many Republicans in the grassroots out in the heartland of the United States, so that's the reason it's not having an impact on their vote.

The Republican Party, I wouldn't say it's splintered. There are some anti- Trump Republicans there was before the search on Trump's resort down in Florida. A growing question about whether somebody else would be a better

message for sort of making America great Trumpism.

That sort of the raid has brought people together in the Republican Party behind the president, the former president, so he's still the strongest

candidate. If there are two or three potential Republican rivals in the primary, he could actually lose that race, but if it's going to be like

2016, when the anti-Trump vote is separated between about sort of six to 10 candidates, Trump could definitely be the strongest potential Republican

nominee. He's really the favorite right now.

KINKADE: And just very quickly, Stephen, if he did run again, what would that mean for Biden?

COLLINSON: A lot of people think, even on the Republican side that Trump might be the only Republican that's on the stage right now that the

president could be given his low approval ratings. President Biden certainly thinks he is the only Democrat that could beat Trump.

So, you know, while most Americans wouldn't like to see it, it's not impossible. We get a rerun of the 2020 election in 2024.

KINKADE: All right. Stephen Collinson, as always good to get your insight thanks so much! Well, the U.S. Federal Judge will hold a hearing Thursday

to consider efforts to unseal the probable cause affidavit used to authorize a search of Donald Trump's home.

Media organizations including CNN asked for the affidavit to be unsealed after federal agents searched Trump's Mar-a-Lago residence for rip

presidential documents.

Well, the U.S. Justice Department warns that releasing details on probable cause for the search might deter witnesses from cooperating in their

ongoing criminal investigation.

And there is movement today in another investigation involving Donald Trump. Trump's lawyer Rudy Giuliani has been in court today in front of a

grand jury in Fulton County, Georgia.

Prosecutors there have informed Giuliani that he is a target of the investigation into Trump's attempts to overturn the 2020 election. Giuliani

repeatedly claimed the Georgia vote was fraudulent, though he never produced any evidence to back up those claims.

(BEGIN VIDEO CLIP)

RUDY GIULIANI, DONALD TRUMP'S LAWYER: The recount being done in Georgia will tell us nothing because these fraudulent ballots will just be

countered again. They look like they're cashing out dope, not just pounds. It is quite clear this feeling bodes.

(END VIDEO CLIP)

KINKADE: Well CNN's Nick Valencia is outside the courthouse in Atlanta. Good to have you with us. Nick, I understand you were able to talk to Mr.

Giuliani as he arrived. What did he tell you?

NICK VALENCIA, CNN CORRESPONDENT: I did him showed up shortly before 8.30 here local time to testify before the special purpose grand jury. We were

able to pepper him with questions. He was defiant exuding an error of competence really, he didn't say much.

But I did get a chance to ask him if he lied when he appeared three times before Georgia lawmakers in the wake of the 2020 election. Listen to what

he had to say.

(BEGIN VIDEO CLIP)

VALENCIA (on camera): Mr. Giuliani when you met with Georgia lawmakers, did you lie to them?

GIULIANI: We will not talk about this until it's over. It's the grand jury and grand juries. As I recall a secret.

VALENCIA (on camera): Do you believe President Trump is the ultimate target of this investigation?

GIULIANI: I'm not going to comment on the grand jury investigation.

VALENCIA (on camera): What do you think their ultimate goal is here? What are you expecting to talk about here today?

GIULIANI: Well, they ask the questions and we'll say.

VALENCIA (on camera): Will you be cooperative? I mean, no. You know, your attorney in New York says you can't promise how responsive you'll be.

GIULIANI: Goodbye.

(END VIDEO CLIP)

VALENCIA: This is a criminal investigation here led by District Attorney Fani Willis in Fulton County. And she told Giuliani earlier this week that

he's now a target a criminal target of this investigation because of what he did here in the wake of 2020 election spreading conspiracy theories.

[11:10:00]

VALENCIA: Baseless claims about voter election fraud claims that we know have been proven to be untrue .And is a significant development, Lynda

because he is now the closest ally to president, the former president to be named as a criminal target and he's also the biggest name to testify here

in Fani Willis's investigation.

The outstanding question though is how cooperative he will be and whether or not he will invoke his Fifth Amendment right. If there's any indication

that he gave in an interview earlier this week, it might be pretty difficult a tall task to get answers out of them.

He did indicate that any conversation that he had with the former president is protected by attorney client privilege, but because he's now listed as a

target, a criminal target of this investigation, things may not be that cut and dry for him. We believe his testimony is going on as we speak. Lynda?

KINKADE: All right. Good to have you on the story for us, Nick Valencia, thanks very much.

VALENCIA: Thanks Lynda.

KINKADE: Well, Israel and Turkey have restored full diplomatic relations. Israeli Prime Minister Yair Lipid calls Turkey an important asset for

regional stability. Relations had been strange since Turkey expelled the Israeli ambassador in 2018, after Israel's military killed 60 Palestinians

during protests along Gaza's border.

Hadas Gold joins us now from Jerusalem. Hadas, can you take us through the details and what this will mean for the region?

HADAS GOLD, CNN CORRESPONDENT: Well, the relationship between Turkey and Israel has definitely had its ups and downs, especially in the last four

years when they've had this sort of diplomatic freeze when Turkey expelled Israel's ambassador in 2018.

And then Israel in turn expelled Turkey's ambassador. And then that doesn't mean that relationships were completely severed. They continue talking and

there was still you know, tourism and business between the two countries.

Now, Israel's leaders credited this positive development over the past year, especially two visits and extended contacts that the two that the

leaders have had.

Prime Minister Yair Lipid back when he was foreign minister went to Turkey, so did Israel's President Isaac Herzog also visited Turkey.

And Turkey's foreign minister visited Israel, I believe in March, and that was the first type of visit of a Turkish foreign minister in more than a

decade. Now Yair Lipid in a statement today, celebrating this new development said that this relationship is an important asset not only for

regional stability, but also for very important economic news.

Now, much of the tension between Israel and Turkey, especially from the Turkish side has been over the Israeli Palestinian conflict. But Turkish

leaders said that they believe that restoring this relationship will actually be good for the Palestinians. Take a listen to what the Turkish

foreign minister had to say.

(BEGIN VIDEO CLIP)

MEVLUT CAVUSOGLU, TURKISH FOREIGN MINISTER: Appointing ambassadors is also important to improve bilateral ties. On the other hand, as we said before,

we will continue to defend the rights of Palestine, Jerusalem and Gaza. It's important that our messages on this topic are delivered to Tel Aviv on

Ambassador Level.

(END VIDEO CLIP)

GOLD: Now, why these two countries might have an interest in coming back together, Lipid sort of mentioned regional stability as well as economic

news. Now, both countries have shared concerns, especially when it comes to Iran to Iran's nuclear program, and especially to Iran's activity in the

region supporting militant groups, especially in places like Syria.

There's also a shared interest in energy projects. Turkey, especially, especially Turkish President, Recep Erdogan has talked about how he has a

big interest in shipping Israeli gas to Europe through Turkey.

Now, this may be a far off project, and some experts believe that it's unlikely to actually happen. But because of all of the attention over

Russia's invasion into Ukraine and the problems that's causing with gas shipments, Turkey is eyeing Turkish president is eyeing this possibility as

a very big business opportunity.

And that's likely helping a spur this restoration of the diplomatic relationship, Lynda.

KINKADE: And Hadas, I just want to ask you about another story that Palestinian leader in Berlin are trying to make a case for Palestinians to

join the UN as full members, but also asking for help to resume peace talks with Israel.

And while they made some pretty inflammatory comments, take us through the comments and the criticism that followed.

GOLD: Yes, so the Palestinian President Mahmoud Abbas was in Berlin appearing at a press conference when he essentially said that the Israeli

treatment of Palestinians over the years is the equivalent of several holocausts.

Now this is not the first time that Mahmoud Abbas has made or written inflammatory comments about the Holocaust that have drawn swift

condemnation. But the fact that he did it in Germany alongside the German Chancellor Olaf Schultz, that brought sort of a new level of scrutiny to it

of course, because of Germany is very sensitive about its history in its role in the Holocaust and its relationship with Israel. Take a listen to

what a The Palestinian Authority President had to say.

[11:15:00]

(BEGIN VIDEO CLIP)

MAHMOUD ABBAS, PALESTINIAN AUTHORITY PRESIDENT: From 1947 to the present day, Israel has committed 50 massacres in Palestinian villages and cities

Deir Yassin, Tantura, Kafr Qasim and many others. 50 massacres, 50 holocausts and until today and everyday casualties combat is really

military, a request to say enough, come towards peace.

(END VIDEO CLIP)

GOLD: Now, the German Chancellor Olaf Scholz did not make any sort of immediate reaction or statement while that soon after Abbas made those

statements on stage, but he did tweet a few hours later, I'll read that to you.

He said I am disgusted by the outrageous remarks made by Palestinian President Mahmoud Abbas.

For us Germans in particular, any relativization of the singularity of the Holocaust is intolerable and an unacceptable, I condemn any attempt to deny

the crimes of the Holocaust.

Of course, the statements from Abbas drew swift condemnation also from Israeli leaders, Israeli Prime Minister Yair Lipid also tweeting calling it

a moral disgrace but also a monstrous lie, saying 6 million Jews were murdered in the Holocaust, including one and a half million Jewish

children.

History he said will never forgive him referring to Muhmoud Abbas. It also drew some condemnation from other officials such as the U.S. State

Department Special Envoy to combat anti-Semitism.

Now Abbas's staff to try to clarify his statements, they issued a statement this morning saying that President Abbas reaffirms the Holocaust is the

most atrocious crime, heinous crime that has occurred in modern human history saying that what President Abbas meant to say is that people should

recognize what he said are the massacres committed against the Palestinian people that he said continue until this day. Lynda?

KINKADE: All right, - for us, Hadas Gold is from Jerusalem, thank you very much. Well, still ahead on "Connect the World" China's worst heat wave in

more than 60 years could get even hotter, going to have a look at the official weather warning next.

Slamming parts of the U.S. it's worsening a drought the drying of a river that millions depend on for water. Stay with us. We'll have a live report

coming up.

(COMMERCIAL BREAK)

KINKADE: Well, the strongest heat wave gripping parts of China for more than 60 years is showing no signs of letting up. That's according to the

country's weather authorities.

Parts of Eastern, Southwestern and Northwestern China have been sweltering since June, and officials said a heat wave could become more intense. The

extreme heat has already led to red alerts in 138 cities.

Meteorologist Chad Myers is at the scene and weather center. Just incredible to just understand how badly it is right now. And in fact that

it is likely to get worse.

[11:20:00]

CHAD MYERS, CNN METEOROLOGIST: It certainly is. And it's supposed to be hot. It's supposed to be middle lower 30s. But we're 10 degrees hotter than

that. We've just added this big heat wave on top of areas that should be warm, hot, its summer.

But all of a sudden, now we're talking about heat indexes, you know, in that 45, almost 50 degree range when you add in a little bit of heat and

humidity together. And we're not going to see any rainfall and very little cloud cover, right where it's going to be the hottest.

The hot word doesn't go away for the south, a little bit of a break for Beijing; we will see temperatures back down into the lower 30s as a small

cold front comes by. But the bulk of China, the bulk of the coasts still will be above 40 degrees, and you go move on, all the way to 41 sun shines

all day.

The numbers that you see on the map are always in the shade for Chongqing, 44. It is a broken record right here at 44 every single day for the next

seven days, which means things aren't cooling down, and we're not going to get any break, Shanghai a slight break back toward normal.

Your normal should be somewhere around 32. You finally get there by the middle of next week. And also hot weather in the United States as well,

Lynda.

KINKADE: Yes, exactly. We've certainly have more on that, especially the U.S. heat wave and the drought and its impact certainly a lot to cover,

Chad, good to have you with us as always, Chad Myers.

Well, the high heat of course does mean little relief for a severe drought that's been dying for the Colorado River and the western U.S. And it is

drying up that's draining the nation's two largest reserves which reservoirs which supply water to Arizona and Nevada as well as millions of

people now to try to save the river basin.

The U.S. government is implementing new measures requiring Arizona, Nevada and also Mexico to reduce the amount of water they use from the Colorado

River starting in January.

CNN's Chief Climate Correspondent Bill Weir reports the water was facing the southwestern U.S. have been decades in the making.

(BEGIN VIDEOTAPE)

BILL WEIR, CNN CHIEF CLIMATE CORRESPONDENT (voice over): Whiskey is for drinking, water is for fighting. That's supposed Mark Twain quote has been

a western slogan since the first settlers. But now the worst drought in 1200 years has water managers and seven states, 30 tribal nations and

Mexico fighting over every precious drop.

CAMILE TOUTON, BUREAU OF RECLAMATION COMMISSIONER: But to date, the state collectively have not identified and adopted specific actions of sufficient

magnitude that would stabilize the system.

WEIR (voice over): That was the commissioner in charge of dams and reservoirs, admitting that upper and lower basin states have failed to

agree on ways to cut their water use by up to 25 percent.

PAT MULROY, FORMER COMMISSIONER, SOUTHERN NEVADA WATER AUTHORITY: I think ultimately the states are going to realize they're playing Russian

roulette, and they're going to have to come to their senses.

WEIR (voice over): For almost 30 years Pat Mulroy was in charge of Southern Nevada's water and led an aggressive conservation campaign to tear up

lawns, reuse wastewater and scold water wasters.

UNIDENTIFIED FEMALE: Can't water in the middle of the day, ma'am, you'll be fine if you don't change your water and clock.

WEIR (voice over): All measures she'd like to see happen downstream.

MULROY: I think they're kind of kicking the can down the road past the election, if you want me to be very frank about it. I don't think anybody

wants to make great public announcements about measures they may have to take prior to the election.

WEIR (voice over): Rather than the force new action, the feds will let the states keep talking while the next round of automatic cuts will lower water

delivery by 7 percent in Mexico, 8 percent in Nevada, and 21 percent in Arizona.

UNIDENTIFIED FEMALE: You can hear this crunching, it's just starting to dry up.

WEIR (voice over): Here alfalfa farmers are already being paid to let their fields go fallow. While some are switching to crops like guayule, a rubber

plant that grows in the desert.

UNIDENTIFIED MALE: Crop switching, looking at lower water use crops like guayule is one of the solutions we need to be looking at in a drier future

to allow communities to sustain themselves.

WEIR (voice over): Thanks to some creative water accounting, California will not face mandatory cuts next year. But their governor is already

warming of a future with a lot more people and a lot less water.

GAVIN NEWSOM, CALIFORNIA GOVERNOR: Science and the data lead us to now understand that we will lose 10 percent of our water supply by 2040. If all

things are equal, we will lose an additional 10 percent of our supply by 2040.

MULROY: We have the very real possibility this coming year. If we have another lousy winter, all things being equal, that we will drive this lake

down to Elevation 1000. That is 100 feet above Dead pool and you're at the bottom of the martini glass.

So it doesn't take much to tip that over and get to the point where nothing can go downstream. And if you don't take it seriously now, if you think

that you're going to avoid this, do a rain dance, go pray, do whatever that we have a great winter, you're insane.

(END VIDEOTAPE)

[11:25:00]

KINKADE: Well, Bill Weir joins us now from Boulder City, Nevada, one of the two U.S. States that will have to reduce their water usage from the

Colorado River. Good to have you with us Bill, such a fascinating piece.

Lake Mead, of course, is the largest reservoir in the U.S. when it's full of providing drinking water for about 25 million people. It just how dire

is it right now?

WEIR: It's really dire Lynda. The thing is, I don't know that the public fully appreciates it because the swimming pools are still full in Malibu,

you know, the putting greens are still green, up and down the Colorado River Basin there.

The restrictions really haven't kicked into the consumer level who's feeling it right now is the farmers in the lower basin states. You got to

understand the tension historically, the upper basin states which have the mountains and all the snowpack, but that lower basin states here like

Nevada, they have all the storage.

So together, you know they say that whiskey is for drinking, water is for fighting in the American West. But they've set aside their fights enough to

build these massive cities out here in the desert.

The question is can they survive this new planet? Can they survive beyond a 23 year mega drought? What if this doubles? What if there is not another

heavy snow year in our lifetimes, then what happens then this goes down to the point where Hoover Dam no longer produces power.

It's Dead pool that the economic ripples are devastating to think about. But now is sort of the hard decisions time. And there's frustration among

the states, the seven States and Mexico, that the feds, the Bureau of Reclamation didn't come and play the heavy like the tough parent in the

situation.

And lay out mandatory cuts which would force you know, new ways of living and ripping up lawns and changing crops and these sorts of things. But at

the same time, the politics in the United States right now is so poisoned for a federal official to turn off our rancher's water right now. You can

just imagine the fireworks. KINKADE: Yes. And I want to ask you more about that bill, like in terms of water restrictions are currently in place. And

the fact that many of those states failed to meet the deadline to agree on steeper cuts. What is the likelihood the federal government will step in

here?

WEIR: Well, they said they're going back to the discussions. There's confusion, you know, again, whether they thought they'd get some more firm

guidance from above from Washington, that isn't happening now.

And so the biggest the Big Daddy at the negotiating table is the imperial irrigation district in California, where they grow so much of the produce

in this country, they get over 3 million acre feet of water a year.

And if they don't want to give that up, they don't have to they have Supreme Court rights to that water. And that's where the tension comes in.

So how it plays out politically, maybe after the elections in November, both local and federal officials will feel more empowered to make tough

calls.

But again, the idea that you can take 25 minute showers in the desert, those days have to end then they educated the public quite well. In Las

Vegas, they were using maybe 300 gallons a day 20 years ago, now they're down to about 110.

They want to get it down to 75 gallons a day. And so it's a gradual education that's happening, but it may be forced by the realities of this.

And then as a grim reminder of what's happening, it's sort of a really sad metaphor.

The fifth body was found yesterday, or just this week, on the swimming beach here, as the water retreats all the secrets of the past there's a--

there was a body found with a bullet and it's in a skull found in a barrel.

They think it might have been a mob assassination, this, this recent one is probably a swimming, drowning fatality. But if that's not a warning, as

you're seeing it in Europe as well as the Ryan receives in China. They're seeding clouds. So this is really a global story.

But it's so acute here in the American West that's been gambling with the idea that humanity could build lush cities in the middle of this desert.

KINKADE: Yes. And as you say, education really is key. Bill Weir, good to have you with us today. Thanks so much. Well, just ahead more Ukrainian

targets hit by Russian missiles and more disruption in Crimea, will take you live to the Ukrainian Capitol next.

Plus amid fears the Balkans could become another potential hotspot. NATO was holding crisis talks with leaders of Serbia and Kosovo. We have the

details when we come back.

(COMMERCIAL BREAK)

[11:30:00]

KINKADE: Welcome back. Well as Ukraine hints that its long awaited counter- offensive may start soon, rescue operations are underway after Russian rockets hit a key Black Sea area in the southern part of the country.

Ukrainian officials say missile attacks hit the Odesa region overnight, injuring four civilians. Odesa is of course being a major location for

grain exports. CNN Senior International Correspondent David McKenzie is watching the developments for us from the Ukrainian capital, joining us now

live from Kyiv.

Good to have you with us, David, so Odesa, obviously Ukraine's third largest city, vital to ensuring grain exports. But again, this region has

come under attack by Russia.

DAVID MCKENZIE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, that's right. You saw these images overnight of a recreational center and some other

buildings struck. But what appears according to Ukrainians, a surface to ship missile that has been obviously converted, you had land targets,

extensive fire there, it really points to the continued efforts of Russia to strike far beyond the frontlines of this conflict.

There was also a strike to the west of where I am standing. And Ukrainian officials say that in the eastern part of this fight, there's been ongoing,

very heavy shelling up to 800 shells and rocket strikes a day on Ukrainian positions.

The Russians are inching forward there even according to the Ukrainians, but it is being a very attritional fight, Lynda.

KINKADE: And of course, if we can turn to Crimea, David, people sees fleeing the Russian controlled area. Kyiv says its strategy is to destroy

Russian supply lines.

MCKENZIE: Well, you see these images again of people leaving Crimea; this Russian occupied peninsula was seen as a relative safe haven for even

Russian tourists going to the beach.

But that was shattered this time last week with a strike or a blast at an airfield which destroyed several Russian planes. And then on Tuesday,

yesterday, there have also been explosions at airfield of munitions damp and severe impact on infrastructure there.

Now, just a short time ago, my CNN colleagues managed to confirm from a Ukrainian official who was sharing details of an internal report that those

blasts both this week and last week in Crimea were the result of Ukrainian action.

They couldn't reveal their, we can't reveal their identity. And it's unclear exactly how they managed to do these operations, whether it was

long range strikes, or it was some kind of sabotage. Sabotage is what Russians said happened this week. And you had the President, President

Zelenskyy of Ukraine hinting at the fact that Ukrainians need to be careful in those occupied territories.

[11:35:00]

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: I am asking now all our people in Crimea in other areas in the south of the country in the occupied areas of

Donbas and Kharkiv region to be very careful. Please do not go near the military facilities of the Russian army and all those places where they

store ammunition and equipment where they keep their headquarters.

(END VIDEO CLIP)

MCKENZIE: Well, there is psychological impact with those living in Crimea, of course, and Russians visiting there. And now they feel I'm sure that

Ukrainians could strike at any time.

And I'm sure that was part of the strategy of Ukrainian military in doing these operations far behind the frontlines.

KINKADE: David McKenzie is staying across the forest from Kyiv, thanks to you and your team. Well, Russia's war in Ukraine is also heightening

concern of tensions in the Balkans between Serbia and Kosovo.

The NATO Secretary General is holding back to back meetings with Kosovo's prime minister and Serbia's president today. NATO Secretary General Jens

Stoltenberg is calling for dialogue and restraint.

Ethnic Serbs in Kosovo are furious over looming new rules on identification documents and license plates. And when Kosovo first announced the rules,

protests erupted, prompting road blockades. CNN's Scott McLean joins us now for the latest on all of this, Scott, good to have you with us.

So the last thing NATO wants is yet another conflict in Europe. Just give us a sense of how tensions have increased in the last few weeks.

SCOTT MCLEAN, CNN CORRESPONDENT: It goes to show you Lynda just how tense things are in this region when we're talking about new regulations with

respect to license plates that have really caused things to escalate.

So today, our NATO Secretary General Jens Stoltenberg met, as you mentioned with the President of Serbia with the Prime Minister of Kosovo to try to

bring down the temperature and he says that the situation on the ground has improved. But look, it is up to both sides to make sure that it in fact

stays that way. NATO is not involved in this conflict other than the fact that it is perhaps the key to security in the region 3700 peacekeeping

troops there they are neutral.

And he said that their mere presence helps to sort of defuse the situation. But he also reiterated his message that they are prepared to do more,

listen.

(BEGIN VIDEO CLIP)

JENS STOLTENBERG, NATO SECRETARY-GENERAL: If needed, we will move forces, deploy them where needed and increase our presence. We have already

increased the presence in the north; we are ready to do more. But of course, we will act when needed and we act in a proportionate way.

(END VIDEO CLIP)

MCLEAN: So he was also asked what the risk right now is in the region of further escalation. And he said that, look, there is always a risk hence

why these meetings are taking place hence why the meeting tomorrow will take place between the two sides directly mediated by the European Union.

As for what the Serbian President said, Aleksandar Vucic, he said, look, that Serbia wants peace, but he couldn't help but revert back to his

rhetoric of blaming the other side for ramping up the tension. He says for political gain.

You got similarly a similar message from the Kosovo the Kosovo prime minister as well, who said that look, people in his country have reason to

be vigilant because of the destructive approach of Serbia and saying that these blockades were actually organized by criminal gains, gangs, excuse

me.

And he was also asked whether or not this whole license plate issue would potentially be dropped. And he gave a very long winded answer that

essentially said, no, so further talks tomorrow are very much needed to bring an end to this tension.

Because, Lynda, this hasn't been resolved. At the moment it's just been kicked down the road. Those regulations are set to come back into force

September 1. KINKADE: Yes, suddenly, NATO hoping to mediate and decrease the tensions, but just how much impact of these talks is expected to have?

MCLEAN: Yes, so one of the things that you should keep in mind is that of course, Serbia would very much like to be part of the European Union in the

future. And so this is being dangled as a carrot for the Serbians to sort of get this all or get this all in order get this all resolved.

Because certainly they will not become a member of the European Union if they're still in this sort of perpetual conflict with their neighbors.

Similarly, Kosovo would like to become a member of NATO.

And you can imagine that that's likely not going to happen either if this sort of conflict continues as well. So both sides have plenty of incentive

to actually figure this out and actually move forward whether or not they can actually do that is a whole other question.

And you have to remember that this goes back to 2008 when Serbia first declared its independence because Serbia never recognized that

independence. In 2013 the EU got involved to try to mediate things though frankly there hasn't been a lot of progress made there.

[11:40:00]

MCLEAN: This license plate issue this registration issue first cropped up last summer. There were blockades then the EU mediated and came to a

compromise. But again, it's flaring up again this summer as well.

And as I said, Lynda, this has not been resolved at this stage. It's merely been kicked down the road for another couple of weeks. And as I said, the

Kosovo prime minister is saying at least at this point that they have provided plenty of incentives for Serbs to change over their license plate

to Kosovo registrations.

But the plan as of now is to proceed as they were going to a couple of weeks ago. KINKADE: Hopefully we see a resolution soon. Scott Mclean for

us, good to have you on the story, thank you. Still ahead on "Connect the World" will the latest apparently final push to revive the Iran nuclear

deal is successful. What diplomats and experts are saying after Iran submits its response to the EU plan.

(COMMERCIAL BREAK)

KINKADE: Welcome back to "Connect the World". I'm Lynda Kincaid. A tense waiting game is happening across three continents today, European Union and

the United States are now discussing Iran's written response to what the EU policy chief calls his final texts to revive the Iran nuclear deal.

And while the reactions from the different parties are generally positive, a few sticking points remain. Tuesday on "Connect the World" we heard from

two key voices on this story.

Russia's top diplomat Vienna says reviving the deal is a collaborative effort. He expressed optimism that an agreement is near.

(BEGIN VIDEO CLIP)

MIKHAIL ULYANOV, RUSSIAN PERMANENT REPRESENTATIVE TO INTERNATIONAL ORGANIZATIONS IN VIENNA: The ball is now in the U.S. court. I hope that

Washington will react positively. And if it happens, we will have for most likely ministerial meeting calls a joint commission of the JCPOA either

this week or next week. Indeed, we are very close to the final very final stage.

(END VIDEO CLIP)

KINKADE: Well, the biggest potential sticking point Iran's apparent demand for a guarantee of compensation if the U.S. withdraws from the deal again,

as it did under former President Donald Trump in 2018. An Iranian expert in Tehran explained why the compensation issue is so important.

(BEGIN VIDEO CLIP)

MOHAMMAD MARANDI, PROFESSOR, UNIVERSITY OF TEHRAN: Iran once inherent guarantees where the Iranians would be able to restart their enrichment

program to become like what it was before the deal very swiftly so that the United States will have an incentive to remain in the deal.

The reason why the Iranians want it to be costly for the United States to leave the deal is because the Iranians want the deal to be protected. It's

for the good of the deal for all sides who want to remain inside.

(END VIDEO CLIP)

[11:45:00]

KINKADE: For more perspective on this, I'm joined by Ally Jeremiah; she's the Deputy Director of the Middle East and North Africa program at the

European Council on Foreign Relations. Good to have you with us.

ELLIE GERANMAYEH, EUROPEAN COUNCIL ON FOREIGN RELATIONS: Good to be with you, Lynda.

KINKADE: So almost 18 months since the talks to revive this deal began, certainly looking more optimistic now, what's your take on where things

stand as countries mole? What is supposed to be the final text?

GERANMAYEH: So look, I think that this is really now a decision for Tehran and Washington. There is a clear pathway that the European Union has put

forward, after, as you said, months of hard slog diplomacy, and they sense, the European sense is that they've now exhausted all avenues for

compromise.

Now, we're in a situation where everybody is saying that we are closer than we've ever been to getting the U.S. and Iran to agree on how they would

come back into full compliance with this agreement.

But what we've seen is that they are somewhat shackled by the policies of the Trump Administration that did its best to try and sabotage this

agreement. And for Iran, as your guests laid out, the key issue now is, can this still survive cannot be sustained beyond the two year term remaining

of this Biden Administration.

And for President Biden, this issue has become such a partisan issue; it shouldn't be because it meets U.S. national security across board. So he

will have a very tough time ahead of the midterms to try and sell this agreement.

And this is why coming to a consensus on these final compromises is proving very tricky.

KINKADE: And Ellie, I want to ask you more about that point, because you have advised EU governments and companies on nuclear negotiations between

Iran and world leaders, during the last round of negotiations for the Iran nuclear deal. Iran does want to guarantee that the U.S. won't pull out

again.

But with a guarantee highly unlikely will we see any other compromise that might satisfy part of that demand?

GERANMAYEH: What I think is that we've seen since March, when really, we hit a roadblock in these talks. And remember, back in February, March, we

thought we were very close to getting the deal done again, like today.

What's happened since then, is that the discussions in Tehran have been very, very heated on this issue of whether it really meets Iran's national

security interests to go in to a deal with the United States with what they perceive is a very weak presidency in the U.S. that may be overtaken by a

future Republican administration.

Now Iran wants to hold on some elements that stay in Iran want to hold on to their leverage, as they view it, of these nuclear bargaining chips. And

other things that actually, it's worthwhile having a two year breathing room on the economy.

Now to try and reach this internal consensus, the camp inside Iran that wants this deal to happen has been pressing and pushing the U.S. for, let's

say, measures that could make up or provide some sort of insurance policy for Iran, for the very fact that this U.S. administration cannot guarantee

that a different U.S. administration in the future will abide by the agreement.

And we've seen this movie play out before recently under President Trump. So Iran has been coming up with different sorts of steps and gestures that

the U.S. administration could take to try and provide, let's say this insurance policy or make it more costlier than it was previously for a

future U.S. administration to leave.

So far, Biden President has found it very difficult to give on any of these issues. KINKADE: And that was a one key point we heard from our Iranian

political analyst who essentially said that there has to be a high price if the U.S. were to withdraw, again, speaking about that issue of

compensation, because trust is an issue right now.

GERANMAYEH: Absolutely. I think Iran and the U.S. have a very complicated history. They really, for the last 40 years, distrust one another. And

President Trump did a lot of damage to that relationship even further.

Now I don't know what your previous guests meant by compensation, but it's very clear from the U.S. side that they're not suddenly going to be able to

take a rabbit out of a hat and provide Iran with billions of dollars' worth of money, that it lost out on when President Trump left the deal and re-

impose sanctions on Iran.

But what may be possible from the U.S. side or let's say let's some technical practical steps that would make it a bit more difficult or

politically more costly for a future U.S. administration to leave.

[11:50:00]

GERANMAYEH: And some of those ideas that have already been, let's say, leaked to the media, are things to do, for example, with how much time

companies would have to exit deals with Iran, if a future U.S. administration re-impose the sanctions or decides to leave the agreement.

Iran wants these apparently extended to a much longer period than they currently are under U.S. framework. And the U.S. has seemingly, you know,

been open to extending those timelines now, whether they can meet in the middle is another question.

Another area which Iran could perhaps look to, again, make it more costly for the U.S. to depart is by making it much quicker for it to revamp its

nuclear activities.

Now in 2015, Iran essentially packed up shop and you know, shipped out its stockpile of uranium and dismantled its centrifuges. What Iran may be

looking to is to keep some of this as it views nuclear leverage more closely to home, so that if a future U.S. president leaves the deal, they

can quickly revamp their program and boost what they see as leverage?

KINKADE: Ellie Geranmayeh, always good to get your perspective, thanks so much for joining us. Well, still to come, cost of living it becoming a

major problem right across the UK's inflation hits a new 40 year high. We're going to go live to London after a short break.

(COMMERCIAL BREAK)

KINKADE: Well, UK consumers are feeling the pinch as inflation rises above 10 percent for the first time in 40 years. The biggest sticker shock is on

everyday staples like bread, cereal, milk and eggs making things worse, households are struggling to pay soaring energy bills.

Let's bring in Anna Stewart live from London. And Anna, certainly right now UK dealing with higher inflation the highest out of all the G7.

ANNA STEWART, CNN REPORTER: Yes, it's not a title that the UK wants, but the highest inflation of the G7. And it's been this way for some months.

But this latest figure actually really came as a shock.

It was above all the estimates from analysts I spoke to yesterday; it was above the expectation even from the Bank of England. And we can show you

that it's still very much an energy price story relating to the war in Ukraine and the sanctions on Russia and the big energy squeeze that Europe

is feeling.

And actually you can see that gas prices, for instance, are up over 95 percent over the last 12 months, electricity 54 percent, you've got fuel

like petrol, they're up over 43 percent.

But what was interesting Lynda about this latest inflation data was the fact that it's also food. What we're seeing now is the delayed increased

input costs now impacting other categories.

So the increased energy prices and also some issues on labor shortages, pushing up the price of a pint of milk, a loaf of bread, a bag of flour, a

pint of milk is 40 percent more expensive than it was a year ago.

And this is going to put such a squeeze on households who already have to contend with their energy bills going up by over $1,000 just over the last

year and it's likely to go up even further still. Now this means that the lowest paid households in the UK will certainly suffer the most.

[11:55:00]

STEWART: So the Institute of Fiscal Studies put out a report earlier this week and it showed that from their expectations, people in the lowest

quintile in terms of income will actually feel inflation at 18 percent in October, so things are certainly going to get worse before they get better.

Lynda?

KINKADE: Tough times ahead. Anna Stewart for us in London, thank you. Well, tonight for our parting shots a mega mission into outer space, NASA finally

ready to launch its Artemis 1 rocket to fly around the moon.

Engineers at the Kennedy Space Center have been testing it for months to prepare for the unmanned mission. Tuesday night but 98 meter tall rocket

stack embarked on a slow six kilometer ride aboard a giant NASA crawler.

Just like the shuttle missions of Apollo Saturn V rockets once did. The final countdown for liftoff is set for August 29. Well, that does it for

this edition of "Connect the World". I'm Lynda Kinkade here in Atlanta. Stick around my colleague Zain Asher is up next with "One World" after a

very short break.

(COMMERCIAL BREAK)

END