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First Move with Julia Chatterley

Ukraine: People Emerging from Bombed Mariupol Theater; Putin Calls Pro-Western Russians "National Traitors"; BMW cuts 2022 Auto Profit Margin Due to Crisis in Ukraine; OECD: Ukraine Conflict will Weaken Global Economies; How the Ukrainian Military is Stalling Russia's Advance; More Bidders Emerge Ahead of Friday Deadline. Aired 9-10a ET

Aired March 17, 2022 - 09:00   ET

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

[09:00:00]

BRIANNA KEILAR, CNN HOST, NEW DAY: --logistic man and this is incredibly important. We've seen what happens when you don't have logistics. And CNN's

coverage continues right now.

ANNOUNCER: This is CNN Breaking News.

JULIA CHATTERLEY, CNN HOST, FIRST MOVE: You're watching CNN. I'm Julia Chatterley in New York, and we begin with the latest on the crisis in

Ukraine. This hour in Mariupol in what appears to be an extraordinary turn of events that a theater uses a bomb shelter, and targeted by Russian

airstrike we've been told that survivors walked away from that building in what would be an incredible escape.

We're trying to ascertain how many? Over 1000 women and children were down there, according to Ukrainian officials, and it was bombed despite the word

children being spelled out in Russian outside on both sides of the building, as you can see there circled.

The Ukrainian Defense Minister said whoever chose that target was a monster. President Zelenskyy was asked if there were any red lines left for

Russia to cross.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: I don't understand the meaning of red lines. What else should we wait for, for letting Russians kill 200, 300

or 400 children?

(END VIDEO CLIP)

CHATTERLEY: Just hours before the end of the curfew in Kyiv, this apartment building was hit by a Russian airstrike, firefighters there now searching

the upper floors. This is just one of several blocks struck over the last 24 hours.

Now other Russian attacks from the air British intelligence suggest the ground offensive is not going well and is largely stalled. Meanwhile,

Ukrainian forces are striking back in this video for Mariupol it shows an attack on a Russian tank you can see rockets strike the tank, which loses

its tracks and the Russian troops try to abandon it.

Ukraine says it's also carried out an airstrike on the Kherson airport now used by the Russian military. You can see destroyed military vehicles in

this video too. And Satellite images show damaged Russian helicopters.

Meanwhile in Washington, President Biden for the first time calling Vladimir Putin a war criminal returning to the Mariupol theater bombing

without doubt one of the most sickening attacks on civilians since the invasion began as Nick Paton Walsh reports.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN INTERNATIONAL SECURITY EDITOR: The flicker of flame here where Russia's barbarism peaked and an airstrike hit a bomb shelter

hiding hundreds beneath a theater said local officials the damage so complete, the entrance was reduced to rubble.

This satellite image from two days earlier, showing the building standing with children written large outside in case you're still thinking nobody

knew who was here. Videos had been circulating for days of the hell inside out over a week of siege and shelling. But for those still living into a

space so tight and dark, it must have felt like a tomb.

Here he says it's where we give out food to children, women and elderly first. This is the converted cloakroom the theater. If this looks like how

you imagined the end of the world, for these children packed in, that may have been the case when the bombs struck.

Russia claimed Ukrainian radicals' calls to blast. In this room 15 people the narrator says little comfort any parent can give by the life this will

be over soon. And below this store, there are yet more an entire city forced underground. Little aid allowed in and few allowed out.

People hear us here are children he says his appeal is for food help. Perhaps unaware it may have led Russian bombs straight to them. The

swimming pool was also hit a place where this narrator says a pregnant woman was trapped under the rubble and we're only expectant mothers and

those with under threes hit.

The Kremlin wants to break or flatten this port but its defenders still exact a cost. Still keep them out. This drone video shows the moment

Ukrainian fighters here to Russian tank. The shots come again and again removing one of the tanks tracks.

The crew related scene hit as they try to flee no room for mercy in a city that has little space left for life itself Nick Paton Walsh, CNN, Odessa,

Ukraine.

(END VIDEOTAPE)

CHATTERLEY: And International Security Editor Nick Paton Walsh joins us now. Nick good to have you with us!

[09:05:00]

CHATTERLEY: I want to get back to that theater in Mariupol. And I was just mentioning before your wrap up there that they we were starting to get a

sense that there were survivors' people were trying to leave. Do we have any sense of numbers?

WALSH: I'll be honest we don't really no, in the same way that we didn't know how many people were actually in that shelter? You saw the conditions

there. Those pictures filmed about six days ago or posted six days ago. We didn't know last night, how many were there.

We don't know how many may have survived. Terrifying as that kind of moment of ignorance is we do know from Ukrainian's Defense Minister, he thinks

possibly as many as 1200, were in that shelter. The issue, of course, initially being that it was the entrance to it that have been so heavily

damaged, and intense shelling had in fact, meant that people couldn't begin the job of clearing rubble.

Clearly, that's changed, survivors are coming out. And it may just be the theaters' basement structure held, and that airstrike did not take lives,

we just don't know. But I'm sure those numbers will come out information very scarce out of Mariupol at the best of times.

And so none of that detracts though Julia from the obvious decision here by the Russian military to drop that bomb to do that airstrike on a building,

which you saw in that report had children written in Russian visible from space and so that feeds into a pattern of Russian behavior here, although

possibly this episode as far as we can tell, ending with some of the best news you could hope for Julia.

CHATTERLEY: Yes. Vladimir Putin has seemingly now directly waging war on children leaves one speechless. What we also heard today from the Ukrainian

officials was, I believe nine humanitarian corridors leading out from various Ukrainian cities, including Mariupol had a bit of greed attack

today.

But then we heard from President Zelenskyy himself saying that what they'd agreed for Wednesday seemingly didn't hold. What can you tell us about

efforts today?

WALSH: Look, it's been the history of these humanitarian corridors. Look Mariupol has seen some success. It seems some aid getting in; it seems some

people are getting out thousands. But there are still hundreds of thousands inside and there are still moments when humanitarian corridors come under

fire.

That's been the picture across the country. That's not uncommon in Russian military operations that these humanitarian corridors come under fire.

There is not a clear boundary in Russian Military operations between civilians being targets and military targets.

I'm talking to you from Odessa here, Julia, I'm standing on the main tourist strip this - which should normally be bustling with people on a day

like this instead, you can see it's utterly deserted and just tank traps.

These are soldered pieces together of iron girder designed to slow armored vehicles and stretch as far as your eye can see here between various

different barricades. This is a city certainly on edge. None of that has been lessened by the air raid sirens we heard we heard pretty significant

anti-aircraft gunfire last night.

And today a local official talks responding to videos posted on social media that showed ships on the horizon here this morning. The official said

a military official that these may be Russian ships that the threat from Russian ships hadn't gone away. But these were ships maneuvering designed

to raise anxieties here.

Obviously, that's had a desired effect. There are concerns that we may see heightened military activity. We've seen planes shut down or told planes

have been shut down by Ukraine by Ukrainian officials. And there have been reports of shelling along Odessa's coast.

All of this adding to fears that this the main port on the Black Sea over which Moscow needs to exert some influence by barrack as their choice of

that might be in order to control Ukraine's economy, that military operations here might be closer than any other residents here possibly

could hope Julia.

CHATTERLEY: Nick, thank you for your report, Nick Paton Walsh there in Odessa. As we were discussing the U.S. President for the first time calling

Vladimir Putin a war criminal though the Kremlin is pushing back and Moscow says Joe Biden's comments are absolutely unforgivable and inexcusable.

President Biden made the remarks Wednesday after previously refusing to call Russia's actions war crimes.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES OF AMERICA: I think he is a war criminal.

(END VIDEO CLIP)

CHATTERLEY: CNN's John Harwood joins us now from Washington. John, the Press Secretary said he was speaking from the heart. The legal definition,

of course, includes intentional targeting of civilians. And if we look even just at what's happened in the last 12 to 24 hours arguably the evidence is

there, but it is a tone shift.

JOHN HARWOOD, CNN WHITE HOUSE CORRESPONDENT: It is Julia. And I think that reflects the increasing savagery of the Russian assault on Ukraine.

[09:10:00]

HARWOOD: What we've seen for the first three weeks of the war is the administration trying to keep the line between that legal definition and

what the common sense reaction that ordinary Americans might have to what they're seeing.

And as the increasing number of atrocities has built up on the television screens of Americans, the President is reflecting that outrage. It also is

a way for him to respond to the pressure that he's getting from Americans from Congress, generated in part by that speech from President Zelenskyy

yesterday and the reaction to news reports, do more give voice give some action behind the outrage that Americans feel.

And the president is drawing a line against some forms of military aid. And he had drawn a line against a branding Putin a war criminal, he let that go

yesterday. Still, obviously, as you indicated, there is a legal distinction. And if this situation ever gets to the Hague, they're going to

have to prove intentionality.

But for the moment, the president was determined to give voice to what Americans is feeling what he is feeling. And I don't think he's looking for

forgiveness from Vladimir Putin. When you mentioned Putin saying it's unforgivable.

CHATTERLEY: I mean, the way it began another angle here with the National Security Adviser Jake Sullivan, meeting China's top diplomat in Rome for

talks, we've now heard that President Xi and President Biden are going to speak by phone tomorrow, there is a belief clearly that China can help here

at least, not hinder the West's efforts to end this war, John, but I think there's also a belief that China will extract a price.

HARWOOD: Well, they will. But I think the fact that this call is taking place after that tense conversation that Jake Sullivan had, is an indicator

or recognition by the United States that China understands the reputational damage it faces the deeper it gets identified in this conflict, which the

entire world is seeing as butchery.

China benefits from the existing world order its economy; it's a rising power in the world. It does not want to become a pariah state in the way

that Russia is on track to becoming. So I think there's at least a glimmer of possibility that the alliance that had emerged between China and Russia

is going to crack a little bit under the strain of this war, and President Biden's going to try to drive that wedge try to make that happen in this

conversation tomorrow.

I don't know what the result is going to be, of course, but it seems to be worth the effort for the president to do if that call that Jake Sullivan

had had in subsequent events and indicated that there was no purpose to the call. I don't think you'd see it happening.

CHATTERLEY: Yes, agree. John Howard, thank you for that. Now from Washington to Moscow, where Vladimir Putin is condemning Russians with what

he calls a western mindset in a televised address.

(BEGIN VIDEO CLIP)

VLADIMIR PUTIN, RUSSIAN PRESIDENT: They will try to bet on the so called fifth column on traitors on those who earn their money here, but live over

there live not in the geographical sense, but in the way they think, with the mindset of a slave. These people cannot live without oysters as agenda

freedom.

(END VIDEO CLIP)

CHATTERLEY: Jim Bittermann has been following this fur us. Jim calling his own people, scum and traitors it was - you could call it an unhinged or

seemingly unhinged speech from Vladimir Putin there perhaps we could argue as he lashes out at the West also acknowledging the pressure he's facing at

home?

JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Unhinged I guess is about the miles way you could put it Julia. The fact is, we're wondering -

only wonder what the Russian people must be thinking when they see their president, saying hearing - to hear him saying these kinds of things.

He went on, by the way, in that speech, where he talked about scum and traitors, he said they would simply spit out like an axe that accidentally

flew into their mouth and spit them into the pavement, the traitors and scum that he's talking about.

It was just a speech that was very revealing, and certainly seems to indicate that he's feeling considerable pressure, and that the propaganda

machine in Russia is not particularly working that well. People are getting to know a bit about what's going on.

They are starting to see photographs of soldiers coming home. They're worried about their vacations abroad, anybody that was thinking about

leaving Russia is now faced with the idea that their credit cards won't work, that they are limited to $10,000 worth of cash to take outside the

country.

They may find sanctions against them when they do get abroad. So there's a lot of indications as the average Russian is feeling a lot of pressure from

this and that's probably been reflected in what the Vladimir Putin is saying Julia.

[09:15:00]

CHATTERLEY: Yes. Yes, these issues are far greater than something that you can spit out like a nap. And I think that's the message here. Jim, great to

have you with us thank you, Jim Bittermann there. We're back after this stay with CNN.

(COMMERCIAL BREAK)

CHATTERLEY: Welcome back! Russia announced today that it's made a $117 million interest payment to foreign buyers of its government bonds and move

that could stave off a debt default. The problem is that the funds Moscow used to make the payments came from assets the West has frozen.

So there's uncertainty over Russia's ability to actually pay those bondholders and that uncertainty remains. The lack of clarity on this just

one of a number of conundrums facing investors at this moment along with the Federal Reserve eager to hike rates to combat inflation and the Chinese

government taking a decidedly more supportive approach to the economy.

Beijing announcing a dizzying array of measures meant to promote market stability, amid ongoing COVID lockdowns that could further weaken its

economy and worsen the global inflationary outlook. Stock markets reflect these challenges.

I think a second day of strong gains in Asia driven by China's stimulating moves U.S. and Europe holding on too much of Wednesday's rally too for now.

UK stocks are in the green as the Bank of England raises rates for a third meeting in a row.

Wall Street is softer as you can see there despite the Fed warning it plans to hike seven times this year and begin quantitative tightening in plain

English selling assets and its multi trillion dollar portfolio as soon as May.

Now investors were already expecting this one reason why stocks rallied yesterday. What's not priced in, however, is even more aggressive fed

action if inflation doesn't ease and policymakers have certainly left the door for that open so it could spell yet more volatility.

Now the war in Ukraine also presenting a challenge to the auto industry; BMW still getting some parts for its cars from Western Ukraine but

acknowledged further interruptions are expected the automaker also halting production at some of its German plants after the invasion, due to

bottlenecks in the supply chain.

BMW also tinkering and adjusting its forecast for earnings before interest in tax to between seven and 9 percent that's a touch lower. Still, BMW says

it's focused on its long term goals including its commitment to climate neutrality, and ramping up electric mobility.

[09:20:00]

CHATTERLEY: Oliver Zipse CEO of BMW and he joins us now. So great to have you with us I think the most important thing in these situations is what

you're trying to do to help. I know that you've given a donation to UNICEF, what more are you planning?

OLIVER ZIPSE, CEO, BMW: Well, good morning. Good morning, Julia from Munich. I think at the current time, three points are really important for

us. The first thing you mentioned it, is we need to help wherever we can, you mentioned our donation to UNICEF of find the height of 1 million euros

and that is only a start. We will continue to support and help wherever it's needed.

And the second thing is we have to remain our operational excellence. As you know, we had some interruptions on the supply chain from the Western

Ukrainian region. We have delivered wire harnesses from there, but already now our plants here in Germany are ramping up again. And we foresee that we

have a fairly normal operation starting next year, or next week already sorry.

But the third important thing is that we work on our long term targets, climate neutrality, ramping up electro-mobility, and also serving our

customers on a global scale in the United States, but also in Europe and in China.

CHATTERLEY: OK, there's lots of disgust there. Let's talk about your supplies from Northern Ukraine, as you mentioned, their cable harnesses.

It's good that you're back up and running you hope from next week, have you substituted some of the supplies that you're getting from Northern Ukraine,

and when we get to a resolution, fingers crossed, will you bring that business back to Ukraine?

ZIPSE: Well, the wire harness situation from the Western Ukraine is a very specific environment we have there. First of all, we don't have a single

source there. We get supply from five different countries, from our wire harness in Central Europe. We also get supply from Romania, from Northern

Africa, partially from Poland.

And so there's no completely disrupted supply. And now it's ramping up again, we're able to relocate, we're able to use flex time models in other

plants. And moreover, our plant in Spartanburg in the United States, and also our plants in China are not affected by this situation currently.

CHATTERLEY: You've also said you're no longer going to supply cars to Russia. You have a joint production partnership with the Russian businesses

there. Do you consider that interest now forfeit? How are you approaching even the sort of joint partnerships that you have there and obviously the

decision now not to supply cars at least for the interim?

ZIPSE: First of all, it's really sad situation what is happening there and we feel with everyone who is involved there. But for now, it's too early to

speculate what will exactly happen. Currently, we're not exporting cars to the Russian market and our joint cooperation with the company - is

currently stopped. So currently, the market is not supplied by BMW.

CHATTERLEY: The other thing that you're clearly facing here as the world is raising energy costs, rising raw material costs. And what we've discussed

on this show in the past is green inflation, the rising cost of component parts and metals in particular for batteries.

And I see you and other automakers ramping up your plans and production for electric vehicles you have what 15 models I believe now in production, how

are you going to mitigate accessibility and cost of some of the green battery component prices that are also soaring today?

ZIPSE: I think there are three main components in there. The first thing we have a hedging strategy for electricity for gas and then for the most

important raw materials and that are working right now. You hedge because you want to mitigate risks.

We currently do not have any direct impact on the electricity and gas side and on the raw material side, we will see an impact of the mid 3 million

targets impact here. The second important point is and we mentioned that already last year, that circularity of raw materials from product from

cradle to cradle becomes eminently important.

[09:25:00]

ZIPSE: Not only from ecological reasoning but also from an economical reasoning and that is speeding up. And the third thing I think is we

propagate technology openness, it's too early to concentrate only on one drive drain technology, because of the impacts of raw materials.

And I think the current time shows that you have to play in different fields. Nevertheless, the ramping up of electro-mobility is the name of the

game. And we will increase our batch production this year by more than 100 percent.

And in 2030, that's our forecast, we will reach at least 50 percent of Beth only vehicles in our portfolio. And maybe if the raw materials don't get

into, into really unacceptable areas that might have been even earlier.

CHATTERLEY: It's fascinating, isn't it? Because I know you and other players have been criticized in the past for not marking an end to

combustion engine production relative to the electric vehicle and hybrid, of course, too but in light of what we're seeing today, and some of the

challenges that could end up looking very smart.

Oliver, the overall message from you today, I believe, is you can't get sidetracked on plans for the future for BMW, you manage the short term

issues, but you keep focused on the future.

ZIPSE: Well, we make - you have to manage the short term, but you also at the same time, you have to manage next year the mid-term and also the long

term. I think two main ingredients in our strategy.

First of all, we have a global footprint. And I'm quite happy talking to you today, the largest increase in revenues and volume in percentage and

absolute terms last year was the United States. It was neither Europe nor China.

And I think to be a global player within about equal footprint in the Americas, in Europe, and in Asia, including China. I think that's a very

robust strategy. And we currently use the momentum in the United States. We regained leadership in the luxury segment in 2022. And already the start of

this year shows that our strategy to be a global player is exactly the right strategy.

And this year, I will be in April in the United States to launch the new I- 7 for the United States. And I'm really looking forward to be back in the United States in due time.

CHATTERLEY: Fingers crossed we have more time to talk about cars and there's less turbulence going on in the world and tragedy. Oliver great to

have you with us Oliver Zipse there the CEO of BMW thank you once again, more to come, stay with us.

(COMMERCIAL BREAK)

[09:30:00]

CHATTERLEY: A warning from the International Energy Agency disruption to Russian oil exports could create a global supply shock. I think we're

already seeing it. Russia has been hit with tough sanctions, of course, and more and more buyers are avoiding Russian oil.

Meanwhile, the oil cartel OPEC is facing growing calls to ramp up production amid rising energy prices. Eleni Giokos joins us now from Dubai.

Great to have you on the show! The other problem, of course, with the IEA is that they slashed the demand forecast due to those high prices. So where

does that leave OPEC in making their decision?

ELENI GIOKOS, CNN CORRESPONDENT: Exactly, it's such a good point that you're making, because I just want to refer to how volatile the oil price

has been. And when you see Brent Crude going to 140 and then dropping down to 100, you kind of get the sense that a big part of the big volatility

we've seen is so much speculation.

So what are the supply demand scenarios that are playing out when the IEA says that there's going to be a huge supply shock, everyone is listening,

but at the same time that the higher oil price and the lower global growth scenario. That is of course being compounded by the fact that we have

inflationary pressures, is going to in itself create demand destruction, which basically means less demand for oil.

But I want to focus on some of the numbers in terms of Russia being the world's largest exporter of oil, and we're talking about 8 million barrels

of oil per day. The IEA says that 3 million barrels of oil per barrel are at risk. Who can fill that gap?

We've spoken about this, of course quite a bit since the start of the war. It's the UAE and Saudi Arabia that can step back. But OPEC Plus countries

are reticent to do that. The big question is why they want to keep Russia close.

They want to keep Russia part of OPEC Plus, because it is important to have one of the global you know major producers of oil and gas as a market maker

down the line because that means stability within the market going forward.

But it also is a diplomatic trying to ensure neutrality. At the same time, we had Boris Johnson, the British Prime Minister coming and visiting

leaders in the UAE and Saudi Arabia trying to get commitments to increase oil supply. We're not seeing any pledges coming through yet, Julia.

So when we hear about volatility, much higher oil prices, and the big question is what is going to happen to the demand scenario? I think all

parties are trying to figure out what happens next? In the meantime, we're seeing self-sanctioning by companies, exporters and importers not wanting

to touch Russian oil.

One expert said that suddenly Russian oil buying Russian oil is toxic. It's a no, no. And maybe Iran looks a little bit more sort of interesting. I

think we're going to see a big recalibration on demand supply dynamics and the big question is whose going to fill that big gap?

CHATTERLEY: Eleni Giokos in Dubai there for us, thank you so much for that analysis. And energy volatility just one of a number of unprecedented

challenges facing the global economies Ukraine war enters its fourth week. The Organization for Economic Cooperation and Development says the conflict

is already hitting global growth driving inflation higher and disrupting supply chains.

It says the eventual toll on the world's most vulnerable people will be substantial, the OECD also urging governments to act immediately to prevent

food scarcity resulting from sanctions on Russia. It says authorities must also help people cope with rising energy prices and improve energy security

by diversifying sources of power.

Matthias Cormann joins us now he's the Secretary General of the OECD. Matthias great to have you on the show! I read the whole report. And I

think what stood out to me and obviously we have much to discuss is the refugee crisis and the scale of it compared to what we've seen, even in the

last 10 to 12 years. It's enormous.

MATTHIAS CORMANN, OECD SECRETARY GENERAL: It's a massive humanitarian crisis. And you know, first and foremost in terms of assessing the impact

of this war so far, is of course the dramatic humanitarian impact in Ukraine on the people of Ukraine in three weeks. We've had more than three

million people flee Ukraine.

[09:35:00]

CORMANN: I mean that is more than over the two years of 2015 and 16 in the context of the war in Syria. So it is a crisis of a massive scale. And it

has been fantastic to see the level of goodwill and generosity and the humanity of the response to that crisis from people across Europe and other

parts of the world.

But this, this will be a sustained challenge to absorb and to integrate those refugees moving forward.

CHATTERLEY: Yes, I'm glad you're sharing your chart there, the Ukrainian refugees relative to previous years' asylum applications in the EU. And the

difference is dramatic. What we've also seen, and we were just discussing it there briefly, 60 plus year highs in commodity prices, particularly

damaging in terms of cereals, wheat production, or output is what a third of the world comes from Ukraine and Russia?

You've also looked at some scenarios, one of them assuming no output from Ukraine, and the impact that that's going to have and it's on the price

impact is sort of hitting hardest those least able to afford it. What worries you most about the impact of this in particular?

CORMANN: Well, what we need to ensure is that any short and medium term measures, we need to just make calm and sensible decisions. I mean, the

worst thing that we could do is impose export restrictions or impose various other measures that will prevent products going into those markets

that need the moment.

So one of our key messages out of this report today in terms of making sure that supply in particular supply of wheat can go to where it is needed is

to keep markets open, to really resist the temptation of imposing export restrictions, because that will only exacerbate the challenge.

And of course, you know, as swiftly as possible, we need to focus on improving productivity, increasing production, finding new areas that can

substitute for the last production out of Ukraine, and Russia.

CHATTERLEY: Yes, avoid trade barriers in order to try and protect your people. And I guess in terms of a government response, whether we're

talking about rising food prices, or rising energy prices, do what you can to try and help those that are most vulnerable?

CORMANN: Well, you know, in terms of the energy supply shock, you know, in particular, in Europe, there's, you know, very significant exposure, and

very significant dependency on energy supplies out of Russia, and that will not be able to be turned around from one day to the next.

So in the short term, it is certainly important to provide support to vulnerable households, to help them cope with the price impact while taking

steps to diversify energy supply, diversify sources of energy supply, and to really win Europe off that energy dependence from Russia.

CHATTERLEY: That's simply going to take some time, despite their ambitions and best efforts. Beyond the humanitarian crisis that we've talked about

already, the consequences of this war are pushing up inflation more broadly. It's also a drag on growth. It's a sort of worst of both worlds in

terms of a stagflation airy type environment.

CORMANN: So we've modeled the impact on global GDP of the world based on the data and information that is in front of us now. And there's obviously

a lot of uncertainty, this is a rapidly evolving situation, we don't really know how either the military conflict will continue to evolve, or how some

- or what future decisions might be taken along the way.

So what we've done is made an assessment based on all of the data in front of us now. And what we've assessed is a negative impact on global growth of

about 1 percent on global GDP and, and further addition to inflation, which was already rising of about two and a half percent.

Now, again, I mean, the risks here are all at the downside. So we would have to expect that this situation will continue to deteriorate moving

forward.

CHATTERLEY: A 2.5 percentage point further increase on inflation, I think is what immediately catches my attention. The Federal Reserve yesterday

decided to begin as anticipated raising rates, they said six further rate hikes this year, the right response because it has a global ripple effect.

CORMANN: Well look, I mean in the end the economic implications of the war in Ukraine are different in different parts of the world. And you know that

do depend in for example, level of dependency level of exposure to Russian exports and the like.

[09:40:00]

CORMANN: But it is entirely appropriate for Central Banks to continue to make judgments based on the data and the information that they see come

through in their respective jurisdictions. But we do say, though, is that there is a capacity to more surgically target support to those areas, and

to those people most in need of support through fiscal policy.

And that is really what we're recommending it in the short term, in order to cushion the effect on vulnerable households that are most exposed, use

fiscal policy, but use it on a temporary basis in a well-targeted means tested fashion. So obviously, those measures can be worn back again,

relatively swiftly, even as appropriate.

CHATTERLEY: And you're advocating for more fiscal policy spending in the United States to target those vulnerable people just to be clear.

CORMANN: Well, what we're saying is this - I mean, monetary policy will need to continue to evolve based on the judgments made by Central Bank

Governors in order to of course, including, among other things, you know, control inflation.

We believe that there is an opportunity for well-targeted fiscal support that can help cushion the blow on vulnerable households without

significantly adding to inflationary pressures and that that is certainly something that we think governments should consider.

CHATTERLEY: Yes, I was just clarifying. Next, the inflation hawks around the world will be a squealing at that comment. I want to ask you about

China too, because clearly, they have their own battles, we're seeing what's going on, gone with Hong Kong. I was going to ask you, how worried

are you by what you're seeing in that region too?

CORMANN: Well look, you know, at any time, there are developments all around the world that have implications on the global economic outlook.

And, you know, we monitor all of these things. But right now, I'm going to think the world is very seized by what is happening in Ukraine and the flow

and implications of that. And that's, of course, the information that we've released today.

CHATTERLEY: We'll keep focused on that. You've also announced in the past week, and it just tied to the report that you announced today or released

today, that the Russian accession process to the OECD now is terminated, you're closing your office there. It feels like a symbolic move. What does

it mean for Russia in practice? And what do you want people to, to understand by that decision?

CORMANN: Well, you know, at some point in the 90s, it seems like a long, long time ago, but there was a hope that Russia would come closer to the

global community of democratic nations committed to market based economic principles, the human rights, rule of law, and so on.

And there was indeed a time when there was partnership with NATO, G8 and indeed, there was an accession process that was commenced in terms of even

potentially considering membership of Russia, in the OECD that was suspended in 2014, in the wake of the invasion of Crimea.

And indeed, the OECD Council, the other week made a decision to formally terminate that process, because that clearly now is no prospect that at

least under the current administration, that Russia would ever be able to - be eligible for to join an organization that is committed to democracy,

human rights, the rule of law, market based economic principles.

We've made various other decisions. I mean, we did have an office still in Moscow, which has ceased operations and we've also suspended Russia's

participation in OECD bodies. Now, you know, Russia was participating in many of our policy processes and many of our - in a number of our

committees, I should say, and you know, that participation for the foreseeable future has been suspended.

CHATTERLEY: Yes, a symbolic move, but I think the message is very clear. Matthias thank you for your time today, sir! Matthias Cormann there the

Secretary General of the OECD thank you likewise! Coming up after the break helicopters shut down and tanks ablaze have Ukrainian counter offensive is

resisting the Russian invasion. We'll explore next.

(COMMERCIAL BREAK)

[09:45:00]

CHATTERLEY: Welcome back! President Zelenskyy repeated his call for a no- fly zone and fighter jets in Wednesday's address to the U.S. Congress. The United States and NATO are holding back due to the risk of a wider war with

Russia. Despite that Ukraine has been holding Russian forces backed by other means, as Fred Pleitgen reports.

(BEGIN VIDEOTAPE)

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): This is how Ukraine's army is halting Russia's advance using anti-aircraft

weapons like the U.S. made Stinger against low flying helicopters.

Now answering Ukrainian President Volodymyr Zelenskyy's plea, the U.S. says longer range anti-aircraft missiles are arriving in Ukraine including the

powerful S-300.

ZELENSKYY: You know what kind of defense systems we need S-300 and other similar systems. You know how much depends on the battlefield on Russia's

ability to use aircraft.

PLEITGEN (voice over): After Zelenskyy's impassioned speech to Congress, President Biden announced a massive new security assistance package worth

$800 million including drones, anti-tank weapons and 20 million rounds of ammunition.

BIDEN: It includes 800 anti-aircraft systems. To make sure the Ukrainian military can just continue to stop the planes and helicopters that have

been attacking their people and an offender Ukrainian airspace.

PLEITGEN (voice over): Despite being drastically outgunned, Ukraine's forces have been putting up a tough fight. The country's ground troops led

by Colonel General Alexandre Cyrski a veteran of Ukraine's Defense of the Donbas region. Meanwhile, the Chief Commander of the Armed Forces General -

who's widely credited with reforming Ukraine's military vows to fight the Russians to the last drop of blood.

I don't have any illusions and don't wait for a gift from God he says. I fought and have been preparing my armed forces. The weapons supplied by the

U.S. and its allies are giving them a fighting chance. Ukrainian units blowing up Russian tanks with shoulder fired missiles like the Javelin

supplied by the U.S. or in laws a similar anti-tank weapon made in Britain.

GEN. WESLEY CLARK (RET.), CNN MILITARY ANALYST: We're at a crucial point in the battle here where Ukraine is tipping the balance against Russia, Russia

is clearly in trouble.

PLEITGEN (voice over): Ukrainian troops have fought tooth and nail with Russian tanks on the ground, despite being massively outgunned by Vladimir

Putin's army. While the U.S. and NATO still reject the idea of a no fly zone the Biden Administration has made clear it will continue to arm Kyiv's

forces to help as they bog down the Russian military and inflict massive casualties Fred Pleitgen, CNN, Lviv, Ukraine.

(END VIDEOTAPE)

CHATTERLEY: And coming up charging to Chelsea the fabled English football team fielding bidders as oligarch Roman Abramovich bows out that's next.

[09:50:00]

CHATTERLEY: Welcome back! Russian court has extended the detention of American Basketball Star Brittney Griner until May 19th that's according to

Russian state media. The two time Olympic Gold Medalist was arrested on drug charges at a Moscow Airport in February. She could face up to 10 years

in prison if convicted.

And more bidders emerging for Chelsea Football Club ahead of tomorrow's deadline including from Ken Griffin, the Billionaire Founder of Hedge Fund

Citadel together with their Ricketts Family who own the Chicago Cubs of Major League Baseball, Chelsea's current owner Russian oligarch Roman

Abramovich now sanctioned by the UK and EU.

Amanda Davies joins me on this, Amanda I am so confused about how this works. Is it actually easy to tell me what we don't know about how this

works, then? Perhaps what we do know?

AMANDA DAVIES, CNN WORLD SPORT: Yes, I think that's probably very much the case. Julia. You know, Chelsea have remained very, very quiet on this issue

since the sanctions were imposed on Roman Abramovich last week by the UK Government that put the sale officially on hold.

But we do know that the U.S. based RAIN Group who are overseeing a sale as and when it happens have set a deadline of tomorrow Friday for any

interested buyers to submit their proposal and any bid and as you well know, in these situations, as much goes on behind the scenes as it plays

out publicly.

We know Chelsea is one of the most famous football clubs in the world playing in the wealthiest League, the Premier League. Premier League clubs

do not come up for sale very often. They're the defending European champions; they have a really healthy academy.

So it is a very interesting, attractive prospect for anybody who might be able to afford it and where we are in terms of buying football clubs. Well,

it looks like consortiums are on the table really, doesn't it? You mentioned the Ricketts Family, the owners of the Chicago Club Cubs they are

one of the few people who have publicly said yes, we are going to put in a bid by Friday.

When they've done that they've said they will provide further details but just to put into context how crazy things that Chelsea are at the moment?

As they were on the pitch playing in the Champions League on Wednesday night that is when it emerged that Lords Sebastian Coe, a long time Chelsea

fan who I've often seen at Stamford Bridge, the Head of World Athletics.

That is when it emerged that he is becoming part of the consortium with the Former Head of British Airways and Ex-Liverpool Chairman Martin Broughton.

They are now throwing their hat into the ring along with a number of other interested parties.

We understand there's about 20 vaguely viable people on the table or consortiums on the table but as thing stands it can't go through.

[09:55:00]

DAVIES: The government has said that Chelsea need to apply for another special license for that to happen. They want to do that, but they have to

be able to prove that none of the profits will lie in the pockets of Roman Abramovich.

CHATTERLEY: Yes, I mean, it's so confusing, isn't it? And it's turbulent off the pitch. How are the players doing on the pitch sort of managing

this, as you said this was sort of breaking while they were even playing?

DAVIES: Yes, I mean, this is where the best coaches, the best managers in world football really earn their money. And you have to hand it to Thomas

Tuchel for how he has dealt with this publicly. And he's fronted up; he's answered the questions and really played it very straight, protected his

players.

Many of whom have got so many questions about what it means for their futures, because at the moment, the club can't resign, players can't do

deals can't do transfers. So last night, they were managed to book their place in the quarter final of the Champions League, they successfully beat

Lille 4-1 on aggregate to make their way through and in the competition, where they're defending champions, but still as the season goes on, that is

where it's likely to make more of an impact on the pitch.

CHATTERLEY: Focus on the game and the game in front of you and try to shut it all out. That's the message. Amanda Davies great to have you with us

thank you! That's it for the show. Stay with CNN "Connect the World" with Becky Anderson is next.

(COMMERCIAL BREAK)

END