Return to Transcripts main page
Quest Means Business
Biden Sanctions Russia After Navalny's Death; Netanyahu Lays Out Post-War Gaza; Historic Odysseus Mission Reaches Lunar Surface; Navalny Team: Mother Given Ultimatum Over Burial; Police Investigate On-Campus Death Of Nursing Student; Apartment Building Fire Kills 10 In Valencia. Aired 3-4p ET
Aired February 23, 2024 - 15:00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:27]
ELENI GIOKOS, CNN INTERNATIONAL HOST: US stocks ending the week at record highs. The Dow sitting in positive territory ever closer to that 40,000
mark. We are up around one-tenth of a percent, 39,136. So close to that 40K mark.
Well, those are the markets and these are the main events.
The US targets Russia's financial and defense industries in a new round of sanctions following the death of Alexei Navalny.
Could Nikki Haley's home state be her last stand? Donald Trump heads to South Carolina with a massive lead in the polls.
Shares in Intuitive Machines are going to the moon after the company's historic lunar landing.
Live from Dubai, it is Friday, February 23rd. I'm Eleni Giokos. I'm in for Richard Quest and this is QUEST MEANS BUSINESS.
A very good evening and welcome to the show.
Tonight, the White House says its new sanctions are just the start of its response to the death of Alexei Navalny. The measures unveiled hours ago
target Russia's financial sector and defense industry. They also sanction multiple prison officials connected to the Kremlin critic's term in a penal
colony.
President Joe Biden spoke earlier, he said the new package will hold Russian President Vladimir Putin accountable.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: That's why I'm announcing more than 500 new sanctions in response.
(Applause)
BIDEN: In response to Putin's brutal war of conquest, in response to Alexei Navalny's death, because make no mistake, Putin is responsible.
We, in the United States are going to continue to ensure that Putin pays a price for his aggression abroad and repression at home.
(END VIDEO CLIP)
GIOKOS: Well, as you just heard, Mr. Biden saying there, there are more than 500 sanctions in the package and they target more than two dozen third
country entities that facilitate sanction evasion. They also target the operator of Mir, the US labels, the payment system, a major cog in Russia's
financial infrastructure, and this is all on top of sanctions on Russia's defense industry.
We've got Natasha Bertrand in Washington for us, 500 new sanctions, and really quite far reaching, but is it going to be enough to put pressure on
Putin? Something that I guess, he is brushing off as just another day in the world of sanctions from the west.
NATASHA BERTRAND, CNN WHITE HOUSE REPORTER: Well, that's the big question, Eleni, is whether these sanctions are going to actually have an impact now.
Russia is already the most sanctioned country in the world. They have managed to weather, the many, many sanctions that the US and the
international community have already put on their economy in the last two years since they launched their invasion of Ukraine, and many of the
sanctioned entities and people that were targeted today by this new package, were already subject to extensive sanctions. And so the question
now is what difference will this actually make?
Now, in one of the more notable aspects of these sanctions, as you mentioned, the US did target three Russian prison officials who officials
say were connected to the death of Alexei Navalny.
He was, of course being held in that penal colony and these prison officials, according to the US, were involved in essentially torturing him
until he died.
And so those were sanctions that were added over the last few days to this very large package that the administration had been planning to mark the
second anniversary of the war.
Now, Russia has managed to weather these sanctions extremely well. They have managed to adapt. And if anything, their military spending, their
budget has only increased over the last two years.
So now the administration is saying, look, we never expected the sanctions to start working right away. We anticipate that these are going to have
more of a long-term impact. But of course, Ukraine does not have that kind of time. They need relief now. They need the US Congress to pass the
supplemental funding for them right now so that they can get that $60 billion in aid that the US had promised them. They don't have time for
these sanctions against Russia to start kicking in, in a year or two or even more.
And so now the question is how is the administration going to get that supplemental bill passed? That is something that President Biden emphasized
today is still a very key priority -- Eleni.
GIOKOS: Yes, and of course highly delayed as you said there.
Natasha Bertrand, great to have you on. Thank you so much.
Well, the European Union has also announced a new round of sanctions against Russia.
[15:05:10]
Russia's economy has rebounded from a recession that started right after its full-scale invasion of Ukraine. The Kremlin says the GDP expanded at a
five-and-a-half percent rate in the third quarter of 2023. That growth has raised the question as to whether the sanctions are indeed working.
In a recent op-ed for CNN, Ukraine's former top commander said they were too weak to stop Russia's aggression.
Daniel Tannebaum is a global anti-financial crime practice leader at Oliver Wyman.
Sir, great to have you on. Thank you so much for joining us. I mean, the question is, these new rounds of sanctions not only from the EU, but of
course, what we've seen coming through from the US, is it symbolic? Is it going to be enough to actually have a significant impact on the Russian
economy and put pressure on Putin?
DANIEL TANNEBAUM, GLOBAL ANTI-FINANCIAL CRIME PRACTICE LEADER, OLIVER WYMAN: No. And just to start off, to be very clear, Russia is not the most
sanctioned country in the world, not remotely close.
The sanctions that have been put in place have been done so in a way to not disrupt the needs out of Russia. So the needs of oil, precious metals, rare
earth minerals. The sanctions today, while significant are unfortunately quantity over quality.
I was in London this morning, and just two days ago, London, and the UK government sanctioned six prison officials who have no assets in the United
Kingdom, nor will ever travel there. So unfortunately, while these sanctions are marking a very somber two-year anniversary and the death of
Alexei Navalny, they really are just symbolic.
GIOKOS: Yes, I mean, that is a reality check, Daniel, I have to say. I mean, you mentioned oil, for example. And I think a lot of people were
anticipating if you really want to put pressure on Putin, then you have to think about, you know, squeezing things in terms of that price cap, which
is sitting at $60.00 a barrel, because that seems in some way to have worked even though oil revenues are still flowing into Russia, they find a
way around that. Would that have been one of the most important sanctions in this round?
TANNEBAUM: I think the oil producers or oil brokers, those that are facilitating the transactions that may be out of compliance with the price
cap, actually, the United Kingdom just yesterday sanctioned a significant Dutch oil broker who was facilitating transactions outside of the price
cap. The US did not match neither did Canada, neither to the EU.
So if you really begin to focus the enforcement of these sanctions, that those that are violating them in a more meaningful manner, it does have the
deterrent effect, and there are some lessons learned from sanctions against Iran historically, where more significant enforcement of existing sanctions
made a real difference.
GIOKOS: I mean, in terms of targeting the industrial sector, because we keep hearing from the Ukrainians, you know, that Russia is able to do for
very precision striking, using drones and other technology as well.
So it's also the importation of chips and, you know, things that they need to be able to keep the industrial sector going. Would that also be a way to
really just tighten things up for Putin? I mean, there are 500 sanctions here, we're talking about the US that they target that sphere.
TANNEBAUM: Well, and to be clear, those aren't -- they are not 500 sanctions, they're 500 individuals or entities that were designated. So
it's really one package that have a number of different people in to it and I hate to challenge the administration in how they've put the rhetoric out,
but it is more discreet than people may realize.
I think the challenge with these sanctions has always been the needs of people continuing to trade with Russia, and even just to note, G7 countries
are continuing to export roughly $3 billion a month of consumer goods of apparel, of medicine into Russia.
So the trade between Russia and the rest of the Western world still continues. But the challenge is the sanctions couldn't be so significant,
that they really took away a need of the West from Russia without having an appropriate replacement, and that's been one of the real challenges.
GIOKOS: Yes, I mean, the spillover, right, and we've experienced the spillover. We know what it's done to food prices. We know what it's done to
oil prices. I mean, there has -- the world has felt these sanctions.
So when we hear from EU leaders, and we hear from President Biden saying, you know, we're being tough on Putin, are you saying this is just not tough
enough? This isn't good enough.
TANNEBAUM: Sanctions are only as good as enforcement. The US has had a long track record and has begun enforcing sanctions. The EU just enacted the
13th round of sanctions. They haven't enforced the first.
The UK government has begun to build out a more effective enforcement regime, but without enforcement, it doesn't scare people away from the
market and you still see reports of very large Western businesses operating in Russia because in some instances, it's perfectly legal.
[15:10:12]
So I'm not saying that it's all bluff and bluster, but realistically, without the enforcement portion of sanctions, they really do lose a lot of
the effectiveness.
GIOKOS: Well, the Russian evasion efforts have definitely stepped up. They have been able to find loopholes, as you say enforcement is part of this.
Will the latest round of sanctions be easily sort of, you know, circumvented by finding very interesting ways of doing things? I mean, we
saw what's happening with India and China, for example, I know the EU has focused on those two countries that are purchasing oil, for example, but
the question of evasion is still one that hasn't really been tackled.
TANNEBAUM: It is very difficult and if not impossible, to totally purge out of the system. Now, one of the things that really tries to stem evasion, is
putting some of those third country actors on notice that if you continue to do business with Russia, we're going to eliminate your ability to access
pretty much of the global economy, that has happened.
In this package, there were a number of third country actors that were designated in Liechtenstein, in the UAE, and a number of other countries,
but they are not names that people know, they're not names that people recognize and that deterrent effect, if you think about Iran-related
sanctions where a lot of the large global banks were fined upwards of $9 billion, that got people's attention in terms of recognizing maybe they
shouldn't do this stuff anymore.
GIOKOS: All right, Daniel Tannebaum, great conversation. Thank you so much for breaking that down for us.
Well, the US Secretary of State appears to be against some of the key measures from Benjamin Netanyahu 's post-war plan for Gaza. The Israeli
prime minister unveiled the plan earlier, of course, for the complete demilitarization of Gaza, as well as the ability for Israeli forces to
enter and exit at will.
The Palestinian Authority says the plan amounts to reoccupation demanding an independent Palestinian state instead. Antony Blinken appeared to reject
parts of the Israeli proposal when laying out US priorities.
(BEGIN VIDEO CLIP)
ANTONY BLINKEN, US SECRETARY OF STATE: There are certain basic principles that we set out many months ago, that we feel are very important when it
comes to Gaza's future, including that it cannot be a platform for terrorism, there should be no Israeli reoccupation of Gaza, the size of
Gaza's territory should not be reduced.
So we want to make sure that any plan that emerges is consistent with those principles.
(END VIDEO CLIP)
GIOKOS: Jeremy Diamond is in Tel Aviv for us.
Jeremy, how workable is this plan? I mean, is the US fully on Benjamin Netanyahu's side in terms of this plan? And, you know, what are the
Egyptians going to come back with in terms of Israel having full control of what happens between Russia and the Gaza border?
JEREMY DIAMOND, CNN CORRESPONDENT: Well, Eleni, the US is certainly not on board with this plan, and you got an inkling of that from Secretary
Blinken, even though he wouldn't go all the way in terms of talking about the details of what the Israeli prime minister has laid out.
But when you look at the details of this proposal from the Israeli prime minister, first of all, keep in mind that he is largely repackaging ideas
that he has put out before, in terms of what he would like to see the day after Gaza.
The difference here is that he is finally putting it on paper. He is formally submitted it to his Cabinet, and so that adds a new layer. But
when you dig into the details here, one of the things that Secretary Blinken was talking about there was not reducing the size of Gaza's
territory.
And in this plan, the Israeli prime minister talks about maintaining a security zone within the Gaza Strip for as long as necessary. That is a
reference to that roughly one kilometer wide buffer zone within Gaza, along the border with Israel, which Israel has created by bulldozing homes and
buildings belonging to Palestinians inside of Gaza. That goes very much against what the United States has talked about.
The rest of this plan, when you look at it, it maintains full Israeli security control over the Gaza Strip, both over the Israel-Gaza border, as
well as the Egypt-Gaza border, you're talking about operational freedom of activity, the Israeli military going in and out, and so even as he is
talking about, as the Israeli prime minister is talking about allowing Palestinian civilian officials to have control within the Gaza Strip,
security control is very much maintained by Israeli forces and that suggests as the Palestinian Authority has already said, some kind of a
reoccupation of Gaza, even if it does not involve settlements.
But at the end of the day, there are very few details in this plan, and it does give the Israeli Prime Minister some room to maneuver both within his
political coalition in terms of some of the demands of the far right that they are making, in terms of settlements for example, but also as it
relates to the demands of international partners.
[15:15:05]
One thing that's very interesting here is that the Israeli prime minister doesn't explicitly on paper rule out a role for the Palestinian Authority
in the future. He has said that in the past, he did not put that on paper here. That's obviously interesting given the US is pushing for the
Palestinian Authority, a revamped Palestinian Authority to play a key role here.
But ultimately, there is no doubt that this plan that the Israeli prime minister is talking about for the day after Gaza would make it nearly
impossible, at least in the short term to see the establishment of a Palestinian state and that obviously runs counter to what the United States
and other international partners are trying to accomplish.
GIOKOS: Jeremy Diamond thank you so much.
When we come back --
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Standing effort, I know this was a nail biter, but we are on the surface and we are transmitting and welcome to the moon.
(END VIDEO CLIP)
GIOKOS: Scenes of elation there, the Odysseus has become the first US spacecraft to visit the moon in more than 50 years. We'll bring you the
latest on the mission, which didn't going to go exactly as planned.
(COMMERCIAL BREAK)
GIOKOS: Intuitive Machines says its lunar lander is alive and well after touching down near the moon's south pole. It's the first US spacecraft to
visit the moon in more than 50 years. Odysseus had trouble with its navigation system before the final approach.
The engineers at Intuitive Machines had to come up with a last minute fix to save the mission.
(BEGIN VIDEO CLIP)
TIM CRAIN, ODYSSEUS MISSION DIRECTOR, TIM CRAIN: We can confirm without a doubt that our equipment is on the surface of the moon and we are
transmitting. So congratulations IM team. We'll see how much more we can get from that.
(APPLAUSE)
UNIDENTIFIED MALE: An excellent call from our Mission Director Tim Crain, and over to our CEO, Steve Altemus.
STEVE ALTEMUS, CEO, INTUITIVE MACHINES: If I could just pass on a few words to the entire team in Intuitive Machines. It's super fab and here in the
Mission Control, more than a standing effort. I know this was a nail biter, but we are on the surface and we are transmitting and welcome to the moon.
(END VIDEO CLIP)
GIOKOS: Investors also cheering on the successful landing.
Intuitive stock has soared 22.11 percent today, incredible rise there.
Miles O'Brien is in Miami and he joins us now.
Miles, incredible.
[15:20:07]
I don't know why I get so excited when I see any visuals from Mission Control and you hear that audio and you get information. Super exciting,
right?
MILES O'BRIEN, CNN AVIATION ANALYST: Yes, Eleni. It's like a space nerd Super Bowl, and they just won, you know, and it's kind of fun to watch, and
it kind of puts you in their shoes a little bit and I think we all go along for the ride a little bit. It's fun.
GIOKOS: It absolutely is.
Look, it had to do an extra orbit around the Moon, which of course, kind of made everyone a little nervous before it actually started approaching the
moon, but it hit the south pole and this is quite significant, right? I mean, this is significant in terms of what it means for you know, figuring
out whether we can tap into that ice water at some point.
O'BRIEN: Yes, it is significant where they are. The moon's south pole is the place that NASA and the Chinese and others have focused on as a place
to set up an encampment because of the presence of ice water.
But as much as anything, this is an engineering triumph. You know, you couldn't come up with a screenplay better that their laser direction system
fails. They use an experiment that is piggybacking for the ride, tap it into the system and land safely. I mean, you can't make that stuff up. I
mean, you couldn't make it up, but they tell you, that's not plausible -- and they did it.
GIOKOS: Yes. Absolutely.
Look, this is, you know, various attempts that we've seen globally. In fact, Japan tried with the SLIM in January, that was partially successful,
Paragon failed, that was the previous attempt by the United States, and this finally, showing success. And it is, of course, important, because
you've got commercial entities, you've got the private sector coming in and working with NASA.
O'BRIEN: Yes, this is a mission, you know, relative to Apollo, which is pennies on the dollar, it's $118 million, all in. When you think about what
it took to get to Apollo 11 to the Moon, that was inflation adjusted dollars, probably about a trillion.
So this is a different way of approaching space. It's very similar to what NASA has been doing in low Earth orbit over recent years. The emergence of
SpaceX, Blue Origin, et cetera, and why not take that philosophy and take it to the moon? That's the idea and it requires, you know, it can create
some nail biting moments, there's no question. But this kind of lean mean approach, apparently is on its way to success.
You know, we're going to find out a little bit more later today to see how functional the spacecraft is. But we know it's on the moon. It's upright,
and it's transmitting that in and of itself, you can declare victory.
GIOKOS: Yes, you know, 50 years -- it's taken 50 years, basically. I guess the question is, we've got better technology now. We are far more advanced.
Why was it so difficult to have a successful landing like this?
You know, I guess the argument is that investment into the space sort of petered out over the decades, but surely, it should have been easier than
what we actually saw transpire over the past while.
O'BRIEN: Yes, everybody asks about this. Well, you know, first of all, let's go to the budget. It's a less expensive approach, there's no
question. Going to a part of the moon, which is much more rugged than the equatorial regions where the Apollo missions landed, and landing on the
moon is hard on a good day.
And let's not forget that Apollo 11, Neil Armstrong at the controls of the lunar module, if the guidance system had done its job without a human
there, they would have crashed on a boulder. And so the human intervene in the final moments to save the day. So what we're trying to do is replicate
the human brain here, 80 billion neurons, human vision in a machine that is, you know, built on a tight budget.
And so that's kind of the rub here, we're doing it in a different way now without a human being present in the loop and it is not an easy thing to
replicate the human brain in silicon.
GIOKOS: Well, that's very good news, because it gives me hope, but as AI starts taking over everything, that the human brain is still an absolutely
vital element in everything we do, Miles.
So great to see you. Thank you so much.
O'BRIEN: You're welcome, Eleni.
GIOKOS: All right, Miles O'Brien there for us.
Well, NVIDIA's market cap hit $2 trillion during today's trading. That puts it behind only Apple and Microsoft in market value. NVIDIA's advanced chips
are used to power artificial intelligence models, it shares are up nearly 240 percent over the past year.
However, NVIDIA says it is facing competition from a number of rivals including the Chinese firm, Huawei.
Anna Stewart has more for us.
[15:25:06]
(BEGIN VIDEOTAPE)
ANNA STEWART, CNN REPORTER: Well, it's been quite the week for NVIDIA. a huge surge in profits, a massive gain in value, and a prediction of even
more growth in its AI chips.
Now the company has made a surprising revelation. For the first time ever, NVIDIA now considers Huawei as one of its top competitors according to its
annual report.
The controversial Chinese chip maker is now a major rival in four out of five of NVIDIA's main businesses, including the crucial production of AI
processes.
Now it's significant because Huawei spent the last four years facing tough US restrictions, banning its access to technology. Despite that, last year,
Huawei shocked the tech world by launching a new phone powered by advanced chips. It's all part of a wider battle between Washington and Beijing over
semiconductor technology.
Several countries, including the US and Japan have imposed a series of measures to try and limit China's access to advanced computer chips, and
Beijing has been investing heavily to try and develop its own domestic chip industry.
These rising tensions and restrictions have already hit NVIDIA sales in China, and the company warned that things are unlikely to change anytime
soon.
Anna Stewart, CNN, London.
(END VIDEOTAPE)
GIOKOS: Coming up, the war in Ukraine has now been raging for two full years. We'll talk to the country's biggest energy group about how it is
trying to keep the lights on. Stay with us.
(COMMERCIAL BREAK)
[15:30:15]
GIOKOS: Hello. I'm Eleni Giokos and there's more QUEST MEANS BUSINESS in a moment when I'll be speaking to Ukrainian energy giant (INAUDIBLE) how two
years of war has reshaped the economy and turned life upside down.
And McDonald's is taking on Starbucks with a new coffee-entered restaurant will visit suburban Illinois to try out Cosmax. Before that's the headlines
this hour.
Alexei Navalny's team says Russian officials are offering just two options for his burial either a secret funeral or burial at the penal colony where
he died. A spokesperson for Navalny says his mother has so far refused to agree to those terms.
Police in the U.S. state of Georgia are questioning a person of interest in connection with death of a nursing school student. The victim has been
identified as a 22-year-old Laken Hope Riley. Her body was found Thursday on the University of Georgia campus. She was enrolled at nearby Augusta
University and had reportedly gone for a jog.
At least 10 people have died after a fire tore through an apartment building in Valencia, Spain. Firefighters worked overnight to contain the
blaze. Prime Minister Pedro Sanchez visited the scene earlier calling for empathy, affection and solidarity with the victims.
Germany's Bundestag has voted to legalize cannabis for adult recreational use. Germany is the third country in Europe to do so after Malta and
Luxembourg. The German health minister says the aim is to crack down on black markets and drug-related crime.
The Ukrainian president says his country will prepare a new counter offensive. His comments come a day ahead of the two-year anniversary of
Russia's full-scale invasion. Ukraine's last counteroffensive failed to achieve its main objectives. And just last week, Russian forces managed to
take control of the strategic city of Avdiivka. Now U.S. aid to Ukraine remain stalled in Congress and some in Ukraine say the outlook is bleak.
Clare Sebastian reports.
(BEGIN VIDEOTAPE)
CLARE SEBASTIAN, CNN INTERNATIONAL CORRESPONDENT (voiceover): This was once Avdiivka's main hospital filmed in the final days before Ukraine's
withdrawals. People used to get medical treatment here, says this Ukrainian journalist, now a total ruin. Satellite imagery taken the day Ukraine
pulled out revealing the extent of the damage to the hospital and surrounding area. Compare that to just a few months before Russia's
invasion of Ukraine.
SEBASTIAN (on camera): Well, in the context of this 1,000 kilometer frontline Avdiivka doesn't actually change much. In fact, the whole second
year of the war barely changed this picture. Russia, of course captured Bakhmut in May in Ukraine. You can see here in yellow, that string of
villages that it managed to take in western Zaporizhzhia as part of this counter offensive, but this was ultimately a year when neither side was
able to gain an advantage.
SEBASTIAN (voice-over): Russia now might be this video posted on February 12, which CNN has geo located to the area around that of Avdiivka hospital
purportedly shows Russian strikes using massive half ton glide bombs. These are known to be increasingly in use on the battlefield and capable of
evading Ukrainian air defenses.
The satellite image shows several very large craters near the hospital and likely to be the result of artillery strikes weapons experts say. F-16
fighter jets would help combat these bombs. But Ukraine's pilots are not yet ready to fly them.
OLEKSANDRA USTINOVA, UKRAINIAN LAWMAKER: There is no political will I would say it in the United States to train more pilots. It seems right now that
we're going to have more jets than actually the train pilots.
SEBASTIAN (on camera): Russia is seizing the moment and is now on the offensive in multiple locations up here, around Bakhmut again up north in
the Kharkiv region, near the town of Kupiansk and down in Kherson and Zaporizhzhia. And these are mostly it should be said not new battlefields
but areas previously occupied and then lost as Ukraine counter attacked. Case in point, if we zoom in on the southern front is the town of Robotyne
in the Zaporizhzhia region.
SEBASTIAN (voice-over): Ukraine raised the flag here last August. Now its forces on alert again, as Russia ramps up attacks.
USTINOVA: So unfortunately, we paid a lot of lives was the counteroffensive last year to get those territories. We basically have to pray for the
United States Congress to understand how important it is to pass the bill no matter what happens, or not passing it in March, Ukraine is going to be
screwed.
[15:35:01]
SEBASTIAN (voice-over): Ukraine's resistance is fierce. It's continuing to wreak havoc on Russia's Black Sea Fleet. And on the front lines, it's
digging in the Ministry of Defense publishing new images this week of extensive construction of fortifications. The only hope now is to hold on.
Clare Sebastian, CNN, London.
(END VIDEOTAPE)
GIOKOS: With most of the fighting taking place, the East Ukrainian businesses are doing their best to operate in the rest of the country.
Ukraine's economy shrank by nearly 30 percent. During the first year of the war, Russian attacks on energy plants and other infrastructure have taken
their toll. Ukrainian Energy Group DTEK said nine of its engineers were hurt during one such attack on Thursday.
Maxim Timchenko is the CEO of DTEK. And he joins us now live. Maxim, great to have you with us. Thank you so much. Very difficult news in terms of the
strike yesterday and some of your employees are currently hospitalized. How does day to day operations get affected with your staff knowing that
anything could happen at any moment because you have been struck incessantly since the start of the war?
MAXIM TIMCHENKO, CHIEF EXECUTIVE OFFICER, DTEK: Thank you for inviting. Exactly two years ago, I was live with your program with Richard with the
images of selling of one of our power station. And probably at that time, most of your audience they believe that Ukraine can survive. And after two
years, what we can say we survive as a country, we survived two winters, after damage of 50 percent of our power stations and policies of Ukraine.
We manage to survive. Moreover, we managed to do export power outside of Ukraine, we managed to build more power stations, wind power stations, so -
- and it's all because of our unity in determination. And because of leadership of the United States and European Union, all other countries
helping us. So yes, just one day go, we have another (INAUDIBLE)
GIOKOS: Yes.
TIMCHENKO: I mean -- I'm sorry, you mentioned 50 percent of your power stations have been damaged. And you've been rebuilding, you've been
maintaining. I just want our audience to understand the gravity of the situation and what you're dealing with. From what I understand, you've been
struck 9700 times since the start of the war and just this year alone 150 strikes on your infrastructure.
TIMCHENKO: Yes. That's, you know, for professionals from industry, energy industry is unbelievable numbers. That's true, that we lost half of our
capacity, but we managed to bring it back, you prepared for the last -- for the -- for this winter time. And I'm sure that we are much more experienced
now we know how to do. But we all depend on one very significant popular air defense system.
And this is basically what we are saying over these years that only with effective air defense system, we can continue. We can keep lights on. You
know, we have 55,000 people every day working to keep slides on in Ukraine. But we cannot do anything with the drones and missiles, Russian sends every
day to our infrastructure. We urge our partners and we ask our partners to help us with their defenses.
GIOKOS: And you're less vulnerable. I mean, that is the reality. I mean, you've got the U.S. delaying an aid package to Ukraine right now. We've
heard of new sanctions against Russia. But they're still able to build drones and very precision, you know, precision ammunition as well. What do
you make of the West assistance of late for Ukraine? Are you concerned that it's just not enough?
TIMCHENKO: Of course, we will live with this every single day. So, we do all physical protection of power stations as much as we can. But it's not
enough. As I said, one of our points of the power station close to Russian border they hit by missiles every week. And our people despite all these,
they've come to the restorative then repair equipment. But, you know, at some point of time, because we don't have enough air defense system, this
power station will start to disappear grating and it will help thousands of people live in this area. So this is reality on the ground now. We do not
get our belief in victory, but we need more help.
GIOKOS: You know, electrification, access to electricity is synonymous with economic growth.
[15:40:00]
We've seen the economy shrink significantly and it is important to note that, you know, people's lives are upended. Jobs are lost because,
businesses come under pressure. Do you have to make very tough decisions about which areas, which parts of Ukraine, you're able to electrify at any
given point in time? And I guess, you know, the question becomes, are you ready for this winter?
TIMCHENKO: Yes. The point is that to choose what part of Ukraine should be electrified was last winter when you have blackouts for hours and days.
This winter, we are much more prepared to go through these winter developed breakouts, we supply enough power to hope off of Ukraine. We do even export
the (INAUDIBLE) outside of Ukraine to neighboring European Union.
And this is good for that what is happening now. But what we need is not only win this war frontline, we need to win economic war. We need to keep
investing in the country. And that's basically what we demonstrated as a company, as a state. We build new wind from during the war. And because
it's much more resistant than conventional power stations. So, we try to come to our foreign partners and demonstrate and make a showcase from what
we are doing during these two years.
We shouldn't see Ukraine as a war zone, you should consider that this country with huge opportunities which will come. It's better to be prepared
for these opportunities now. Looking at those Ukrainian companies which stays and try to keep economic life and continue investment.
GIOKOS: Maxim, thank you so much for your time. I know that it's difficult dealing with so many crises at any given point. We appreciate you speaking
with us today. Thank you. Maxim Timchenko there for us.
Well, in Sub Saharan Africa, almost a billion people lack access to clean cooking options. Instead, they turn to kerosene, coal, charcoal, or even
wood for cooking fuel, but in doing so they often expose themselves to household air pollution, which can be deadly. Some 700,000 premature deaths
each year are linked to burning harmful fuels at home. And this week's Connecting Africa I spoke with a company in Uganda that's trying to address
this.
(BEGIN VIDEOTAPE)
GIOKOS (voiceover): Lively illuminated streets, the hum of the convenience store, and the buzz of a late-night haircuts. This rural village in
northern Uganda is shining bright with opportunities. Thanks to an alternative form of energy, biofuel.
PETER BENHUR NYEKO, FOUNDER AND CEO, MANDULIS ENERGY: Africa is a continent that at the moment has well over half a billion people without access to
electricity and the majority of those are farmers. And for those farmers no extra electricity means they cannot process their crops.
GIOKOS (voiceover): In addition to using solar energy, the company breaks down agricultural waste into a synthetically produced gas called syngas.
They then take the green hydrogen that is released during this process to create electricity.
NYEKO: We're working right now in Uganda. With over 10,000 farming families, farmers bring their crops to be processed to high value products.
And once that is done, they're able to sell them and improve their income. The waste that's left behind is what we utilize to generate our electricity
and generate our clean cooking fuel.
GIOKOS (voiceover): Mandulis Energy says their relationship with local farmers fosters a circular economy.
NYEKO: Needless farmers to be cooking with our briquettes and pellets, won't even be selling us agricultural waste. So that's how we work really
closely with them.
GIOKOS (voiceover): While profits for these businesses are in the green. Manulis Energy says the economic potential of biofuel goes beyond local
business owners.
NYEKO: Delivering renewable energy will make a massive difference positively on the balance of trade within Uganda, within East Africa and
within the region and globally.
GIOKOS (voiceover): The company says it's already taking steps to further expand beyond Uganda's borders.
NYEKO: Mandulis Energy has already completed feasibility studies for projects in Botswana, South Africa and already completed development of
projects in Zambia and Nigeria and Cambodia with additional sites coming up in Kenya, in Guinea, in the United Kingdom, and Spain.
(END VIDEOTAPE)
GIOKOS: When we return Nikki Haley is vowing to fight on two Super Tuesday but can the Republican presidential candidates survive a potential loss in
her home state this weekend?
(COMMERCIAL BREAK)
[15:47:45]
GIOKOS: Donald Trump heads into tomorrow's South Carolina primary with a huge lead in the polls. His Republican rival Nikki Haley trails in by 35
percent. In one recent survey, the former South Carolina governor has been sharpening her attacks on Trump. She's vowing to stay in the race even if
she suffers a lopsided loss in her home state.
(BEGIN VIDEO CLIP)
NIKKI HALEY (R) PRESIDENTIAL CANDIDATE: And I'm not doing this for me like they want -- first they want to say that I was -- I wanted to be vice
president, I think I've pretty much proven that is not what I'm trying to do. Then now you're talking about my political future. I don't care about a
political future. If I did, I would have been out by now.
(END VIDEO CLIP)
GIOKOS: I'm joined now by Harry Enten. Our senior data reporter. Very confident Nikki Haley there, I have to say. She's vowing to stay in the
race. But I guess the margin of victory either way, is really going to determine what happens next.
HARRY ENTEN, CNN SENIOR DATA REPORTER: You know, I got to admire her confidence given where the polling data is. You know, you mentioned that
one poll that had her down by 35 points. How about two polls that have her down by about 35 points? You see it here the CBS News YouGov poll had her
down 35 points. The Winthrop University poll had her -- has her down 36 points.
My goodness gracious, you know, I've gone back through history. And I can tell you that I can't find a single polling miss that is wide enough and a
Republican or Democratic presidential primary that would somehow allow Nikki Haley to come back against Donald Trump and South Carolina. As you
were mentioning, it's really just a question of the margin. How off are the polls potentially going to be?
But at this particular point, Donald Trump looks like he's going to crush Nikki Haley in her home state.
GIOKOS: Well -- I mean, the question is, then does she stay on? And will she have the funding to stay on? Will, you know, she's still get the
support. I guess the longer she stays on, the longer she's sowing seeds of discontent and doubts around Donald Trump.
ENTEN: I guess so because the fact of the matter is, I don't really see a pathway for her to win the nomination if she loses tomorrow in South
Carolina which all the polling data suggests that she probably will because if you look through history, and you say OK, if a candidate has lost their
home state, have they had gone on to be the nominee?
[15:50:01]
It's happened zero times since 1972. You have to win your home state if you're going to be your party's nominee. Now, of course, maybe she doesn't
care about that. She really just wants to embarrass Donald Trump. Because that's honestly the only real thing I could see for her going forward. If
in fact, she loses tomorrow in South Carolina, which again, all the polling data suggests that she probably will.
GIOKOS: Yes. That graphic of zero percent was definitely a reality check for all of us. Look, so many people have been asking, you know, what do we
do with our votes if Nikki Haley doesn't win South Carolina aligner? In fact, many Republicans, voters have been asking that question, do they then
vote for Trump or Biden? Because at the center of this, one of the biggest issues, of course, is reproductive rights.
And we've seen what's happening in Alabama with the IVF issue and embryos and how that's just creating a lot of concern about what that means,
overall, for women in the United States.
ENTEN: Yes. You know, this particular point, if you look at the polling data, you would think that Donald Trump is in the best position that he's
ever been at this point the general election cycle and either 2016 or 2020. And the question is, what might change that? Well, that ruling down in
Alabama may very well change it. If I was a Republican candidate running for either the presidency or for federal office or for state office, I
would be running so far away from that Alabama Supreme Court ruling.
I would literally be the fastest man alive. It is so unpopular. I honestly just can't even put my words around. And I'm usually a guy who's pretty
good with my words. It's just so unpopular. This is the type of thing that could really throw a wrench into this election. I'm not sure what type of
wrench it might throw. But the fact is, if I'm a Republican, this is a decision I want no part of and that is why the National Republican
Senatorial Campaign Committee has actually said that Republicans should essentially say we are for IVF because it is something that is very popular
in this country.
GIOKOS: All right. Harry Enten, always good to speak to you and thank you so much.
ENTEN: Thank you.
GIOKOS: We'll be speaking soon, I'm sure. So much happening in the U.S. of course around these elections. All right, so we're going to a very short
break, we'll be right back.
(COMMERCIAL BREAK)
GIOKOS: We'll just into CNN. Former President Donald Trump now officially ordered to pay a total $454 million. It's linked to his civil fraud case in
New York.
[15:55:06]
That figure including the 355 million in penalties plus 99 million in interest payments. The sign judgment, which posted a short while ago,
starts a 30-day window for Trump to appeal. Let's go straight to Kara Scannell Kanal who's going to break down these numbers for us. An increase
in the penalties that Donald Trump needs to pay. This is interest payments as well. How are these calculated? How do we -- what more do we know about
this new figure?
KARA SCANNELL, CNN CORRESPONDENT: Yes. So you remember last Friday, the judge issued this ruling, the $355 million that Trump owed plus interest.
And the way that this comes about, this is money that Trump is paying back that he received as part as what they call ill-gotten gains or money that
ways that he benefited from the fraud. And in this case, the allegations and what the judge found to be true is that Trump received better interest
rates when he took out certain loans and got some insurance policies.
So it was that benefit that the judge has calculated here. And that was, you know, he relied on expert testimony during the trial as well. That is
the money, the $355 million. Now, he also said on Friday that it would include interest which we all back of the envelope calculated to about $99
million. Today that is now official, it is $99 million in interest. So that brings the total that Trump will have to come up with to $454 million.
But the judge is saying that this interest will continue to accrue at nine percent until this case is over. And this means that, you know, as Trump is
looking to appeal this judgment, which he has said that he will, that money will continue to grow until that's over. And of course, if he is successful
and the number now is knocked down, then he will pay less. But -- so now that this judgment is officially entered into the case, once Trump is
served as well as his sons, Donald Trump Jr. and Eric Trump are also found liable.
Once they are served in this case, then they will begin to start their process of appealing and that starts at 30-day clock. So Trump's team will
have 30 days to come up with this big number, almost half a billion dollars that he will have to either put up in cash or post a bomb that is backed by
some collateral cash, one of his properties. So this really is going to kick off this 30-day window for him to put up that money, to come up with
this money while he's running for president, while he's facing for criminal cases.
A lot of strain on them and raises questions for the Trump organization and how it will be led going forward. Eleni?
GIOKOS: All right. Kara Scannell, thank you so much for that update. Only just moments left to trade on Wall Street. We will have the final numbers
and the closing bell right after this. Stay with CNN.
(COMMERCIAL BREAK)
GIOKOS: Only just moments left to trade on Wall Street. The Dow continues to rise about 120 points and videos being the story of this week, blowing
out earnings expectations. Its shares up less than one percent today. That makes it market cap just shy of $2 trillion.
[16:00:00]
Let's look at those Dow components. Amgen is on top, health stocks are strong with Johnson and Johnson and United Health, both in the green. Well,
that is it for QUEST MEANS BUSINESS. I'm Eleni Giokos. The closing bell is ringing on Wall Street right now. And "THE LEAD" with Jake Tapper starts.
Have a fantastic weekend.
END
