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Russia Begins Full-Scale Invasion Of Ukraine; Stock Markets Reel, Oil Prices Surge After Russia Attacks Ukraine. Aired 5:30-6a ET

Aired February 24, 2022 - 05:30   ET

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

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[05:31:36]

BRIANNA KEILAR, CNN ANCHOR: This morning U.S. defense officials are tracking Russian troop movements into Ukraine's territory. We have CNNs' Katie Bo Lillis, live for us at the Pentagon. Katie Bo, what are officials they're saying?

KATIE BO LILLIS, CNN REPORTER: Yes, look, there's little question at this point, Brianna, that this what we've seen unfold over the last 12 to 15 hours, 12 hours in Ukraine is really the worst case scenario, the sort of most maximalist option that defense and intelligence officials have warned over the past months could unfold here in Ukraine.

One thing that we do know that defense officials are watching closely is the movement of Russian troops from Belarus, into Ukraine from the North. This is of course of a particular concern because it offers those troops basically a straight shot to Kyiv, the Ukrainian capital, and also offers them the potential opportunity to try to cut off Ukrainian forces that are operating in the east of the country kind of butting up against those separatist held on clubs (ph).

I think the big question right now is how does this ground invasion unfold? How does the ground campaign unfold? What kind of air support does it receive? Essentially, how much territory does Vladimir Putin seek to take and to potentially hold.

KEILAR: All right, Katie Bo, thank you so much for the latest there from the Pentagon. John.

JOHN BERMAN, CNN ANCHOR: All right. Joining us now retired Lieutenant General Mark Hertling, CNN military analyst. General, let's just pick up where Katie Bo just left us right there. She's talking about this border between Ukraine and Belarus, in the concern that Russian ground troops might be coming in and crossing the border right there. Talk more about that, please?

LT. GEN. MARK HERTLING (RET.), CNN MILITARY ANALYST: Well, they're coming from all directions, John, from what we understand, but they have delayed in different parts. The attack is not synchronized, where everyone goes at once. They will try and enter the country of Ukraine from different directions at different times based on this scenario that synchronization matrix we talked about last week.

But what is what seems to be happening is the Ukrainian army is actually putting up a pretty good defense early on against aircraft, helicopters, some tanks, as we've seen, they've already destroyed or it's been reported by the Kyiv Post, one of the organizations I gain information from.

And it seems like it's a very interesting and slow moving fight. The momentum has not generated yet. You know, there was a lot of talk of the so called shock and awe equivalent in Ukraine that we had in in both Desert Storm and in Iraqi Freedom One, it doesn't seem to be happening, even though there seems to be a lot of churn over the night over the last 12 hours or so. But it doesn't seem to be as shocking and awing as some people believe.

Now, you know, we talked over the last couple of weeks about the potential for different courses of actions coming in one area coming in another area. As Katie Bo just pointed out, it seems like it's a country wide effort, but you're seeing things move in different operational tempos, depending on the location where it's coming in. Certainly the force has come in from Belgrade or Belarus rather, are going to be interesting to watch as well.

BERMAN: All right, General Hertling I just want to show you on our map now. We've had reports of explosions, either from our reporters or locals and all these places are from Kharkiv here, Kramatorsk, Kyiv, Kalinovka, Odessa, Mariupol, Zaporizhzhia, and this is just a smattering.

[05:35:05]

We now have a total we're told of at least 16, 16 different cities in locations where there are reports of explosions. I suspect the number is even higher. What are the Russians getting out here?

HERTLING: Well, first of all, they're using different types of weapon systems based on the distances from the surrounding borders. So you could have a long range system, like what's called the Smerch, it's a multiple launch missile system travels about 90 kilometers, 55 miles or so. So you use those in places like the Oblast in the east to get closer targets that are, excuse me, targets that are closer to Russia.

You could be using the caliber missile system, which has various ranges up to 500 miles from both the north and the south. So those could be fired from outside the perimeter of Ukraine, but hit targets as far away as Kyiv or even Odessa coming in from the ships as Secretary Layton (ph) was talking about.

So the different types of aerial, excuse me, the different types of missiles or artillery systems are geared toward the targets they're intended to hit. And they sometimes travel with the Russian troops. They sometimes don't. They're a standoff weapon. But in both cases, John, these are area fire weapons. And what I mean by that, again, you know, we talk a lot about precision in Modern Warfare. These are aimed at a target location, and for the most part covers a wide swath of area. So you've already seen apartment buildings as an example being hit in Luhansk. But those are probably area fire weapons that were close to their targets, but hits civilian locations.

So all of those things are elements you have to factor into this attack before the main ground forces arrive and start fighting themselves. And when I say that I'm talking about tanks and BMPs infantry men and the artillery moving the so called self-propelled artillery, that would be moving, but we're also seeing aircraft now too. And as I said, the Kyiv Post is reporting seven Russian aircraft downed already, which is a pretty good, pretty good total so far in this war.

BERMAN: And we're trying to get confirmation of that ourself at this point, retired Lieutenant General Mark Hertling standby. Don't go for we're going to be back with you in just a little bit.

So, Russian attacks into Ukraine having a huge economic impact around the world already from market prices. Everything else? Let's get to CNN Chief Business Correspondent Christine Romans for look at where things stand.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Yes, no surprise here big moves around the world. Russian aggression you will feel at the grocery store, the gas station and in your retirement account. European stock markets tumbling, oil prices surging, weak futures in Paris up 15 percent records there, U.S. stock index futures all down sharply here. The S&P 500 sliding even deeper into an official correction now down nearly 14 percent from its most recent high. Global oil spiking 8 percent topping $100 a barrel for the first time in eight years. Oil supplies were already very tight. Concerns now are that there are disruptions to oil flows from Russia that one of the world's largest producers.

President Biden said the world would hold Russia accountable for its actions. Members of Congress want even tougher sanctions from the U.S. and its allies. What could they be? Think export controls more sanctions on Russian oil and gas and further isolation of Russia's financial system. The U.S. has already cut Russia off from Western finance sanctioning to big banks and its sovereign debt.

And the company behind Nord Stream 2 that gas pipeline between Russia and Germany. Germany has halted its certification a dramatic move because the EU depends on Russia for more than a third of its natural gas.

Hitting Russia where it hurts, John, sanctioning its energy that could carry a cost for the west. It is a top oil and natural gas producer. The world is addicted to Russian exports. In the EU that means higher home heating and electricity costs. In the US, it means higher prices the pump, already 3.54 a gallon and rising.

Energy prices, especially gas, a major driver of inflation. High inflation already taking a toll politically, putting the West leaders here in a tough spot. President Biden pledged this week to use every tool to blunt those gas prices, John, but those tools are limited. The U.S. can pressure producers to open their spigots, release oil from strategic stockpiles maybe offer a gas tax holiday. Russia by the way, already paying a big financial price. Russian stocks crashing more than 40 percent overnight, and the ruble hitting a record low against the dollar.

BERMAN: I was going to ask you about that because a few minutes ago when I checked, it was down about half of its value.

ROMANS: Yes.

BERMAN: What kind of impact does that have on the Russian economy for a market to lose half its value and half dead?

ROMANS: It's devastating. And it shows you that Putin's gamble here he's comes with a cost to his own country as well. The central bank were expecting the central bank -- the Russian Central Bank to step in with a big intervention to try to prop up that currency and its own economy.

BERMAN: All right, Christine Romans, very important stuff. Thank you very much.

[05:40:00]

So everyone was waiting for Putin's next move. Now we know. President Biden says the world will hold Putin accountable what exactly does that look like? Stay with us. Our special live coverage continues right after this.

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KEILAR: Breaking news Russia has attacked Ukraine in a nationwide large scale assault. Ukraine just moments ago saying at least 40 soldiers and civilians have been killed so far.

[05:45:00]

Ukrainians standing in long lines at ATMs across the country trying to get out as much cash as possible. People are fleeing the cities, gas stations are packed. We have CNN's Alex Marquardt, who is live for us and Mariupol, Ukraine, the port city in the south there. Alex, what can you report from there?

ALEX MARQUARDT, CNN SENIOR NATIONAL SECURITY CORRESPONDENT: Yes, Brianna, this is a critical port city of around half a million people. And in just the past few moments, we have heard the most explosions that we have heard since arriving here just a couple hours ago, a long, low rumble of what we believe to be artillery, that line of contact between Ukrainian forces and the Russian backed forces just about 15 miles from here.

We left this city just a couple of days ago, and we have returned to a very different city. I just want to show you some of the scenes here Brianna. This, as you were mentioning, is one of the many lines that ATMs across Mariupol. There are two banks here that appear to be closed. Their ATMs are open, people lining up in an orderly calm fashion but clearly worried. There's another bank down the street that has been closed.

We spoke with one woman who has been trying banks all across town, she said her kids are waiting in the car. She wants to leave with her family. And amid this confusion and this can -- this fear, there -- rumors are springing up to people have told us they're concerned about not being able to get out of the city through checkpoints and different roads that they're afraid or closed off. When we came in this morning, we saw cars and trucks streaming out at all the gas stations. We did see long lines of cars trying to get gas.

So Brianna, there is clearly a concern for what happens next. This city is in the Donbas, in this eastern part of Ukraine, which President Putin named specifically as the reason for carrying out what he called a special operation. So this town could be in for a very difficult time, in the hours and days to come. Brianna.

KEILAR: Is that any sort of founded concern that they're worried about the city essentially being closed off, Alex?

MARQUARDT: Absolutely. I mean, that this is an area that we have long thought that President Putin would have his sights on because it is smack in the middle between Crimea, which of course, Russia illegally annexed back in 2014, and the rest of mainland Russia. So at the very least, it has been thought that he would try to take what we've been calling a landbridge, which would run right through here.

This is a strategic city. As we mentioned, at the top there is a Ukrainian naval presence, there's a commercial naval presence is right on the Sea of Azov. This is in the Donetsk Oblast, as they call it, the province. And when we heard President Putin recognize those breakaway republics, as they call themselves the other night, he didn't only recognize the land that they currently occupy. He says he's recognizing the land that they claim, which is including here, so that definitely raised the concerns that we could see Russian forces right here very soon, Brianna.

KEILAR: All right, Alex, thank you so much for the very latest there from southern Ukraine. Our coverage of the ongoing situation there continues as Russia begins to attack Ukrainians waking up to their worst nightmare.

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[05:52:37]

KEILAR: More now on the breaking news, Russia has invaded Ukraine. Explosions are being heard right now across the entire country. And joining us now to talk about what is going on there is Olena Lennon. She is a adjunct professor of political science at the University of New Haven. She's also a Ukrainian native. And Max Seddon is with us. He is the Moscow bureau chief for The Financial Times.

Olena to you first. I know you have friends and family in Ukraine, have you been able to touch base with them? And how are they doing? What are they telling you?

OLENA LENNON, ADJUNCT PROFESSOR, POLITICAL SCIENCE, UNIVERSITY OF NEW HAVEN: Well, good morning. Yes, the situation remains very dynamic. We have been watching the events unfold live, watching horrific scenes of a multi-directional attack coming from the north, the south and the east of the country, with explosions and missile attacks on critical infrastructure, military units and airfields almost simultaneously right after Putin announced the beginning of the special operation.

People are trying to see cover in in bomb shelters, evacuate. There is massive jams on the roads. So there's an overall sense of panic. And obviously people are trying to evacuate as soon as possible. But at the same time, President Zelenskyy address the nation again, recently, called for calm for sense of unity to and he's still very optimistic about Ukraine's ability to defend itself.

BERMAN: So Max, this is a large scale aerial assault over the entirety of a large nation. This isn't just border regions between Russia where you are in Ukraine. This is over the entirety of Ukraine here. We haven't seen anything like this for multiple generations in Europe. Is there a sense this morning that the Russian people feel like this is what they signed up for?

MAX SEDDON, MOSCOW BUREAU CHIEF, FINANCIAL TIMES: I think most Russian people are completely astonished by this. Because if you can forget about ordinary people even you know, a week or two ago, I would talk to people in and around the Kremlin. And they would absolutely assure me that Russia would never do this because they know that they couldn't hold the territory. Ukrainian people hate them. Ukrainians are also supposed to be Russia's brother nation, and they can't really explain why they're killing them or why Russians are getting killed, fighting Ukrainians. And now there's this complete double think, it's completely unbelievable where you have the speaker of parliament said that Ukrainian civilians have nothing to fear because Russia and Ukraine are one people, at the same time that Russia is launching missile attacks on Kyiv and other major Ukrainian cities.

[05:55:15]

And I think it's not a coincidence that just a few minutes ago, Russia's internet censors said it would find them blocked media who reported on the war using anything other than Russian official sources, because officially, this is just an operation to quote unquote liberate the Donbas region in the far east of Ukraine, rather than the full invasion that's actually happening. And I think there's the rest of Russia that could become embarrassing if people really see the full extent of the damage that Russia is wreaking in Ukraine right now.

KEILAR: It is stunning as you say, even to Russians there, Max. Thank you so much. Olena, thank you to you as well. We are live on the ground in Ukraine where our CNN teams are right now hearing explosions so stay with us for more.

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ANNOUNCER: This is CNN Breaking News.

BERMAN: All right. Good morning to our viewers in the United States and all around the world. It is Thursday, February 24th. I'm John Berman with Briana Keilar. And this is CNN special live coverage of the breaking news.

Vladimir Putin has launched a multi-pronged large scale military attack against Ukraine. This is an attack across the entire nation of Ukraine. You can see there. Explosions reported in at least 16 different locations.

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