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Putin Speaks at St. Petersburg International Economic Forum; Putin's Speech and EU's move 114 days into Ukraine Conflict; Trump Berated Pence in call on Morning of Insurrection; Zelenskyy: Painful Losses in Kharkiv Region, Sievierodonetsk; Conserving Columbia's Wax Palm in its Magical Habitat; Russian Invasion Means Rising Prices for Fish & Chips. Aired 11a- 12p ET
Aired June 17, 2022 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[11:00:00]
BECKY ANDERSON, CNN HOST, CONNECT THE WORLD: Well, its 4 p.m. in London it is 6 p.m. in St. Petersburg where Russian President Vladimir Putin just
delivered a defiant speech after the European Union announced it supports Ukraine's efforts to join the bloc.
I'm Becky Anderson. Hello and welcome back to "Connect the World". We begin this hour of the show with the implications of a big speech, a big no show
and a big boost.
Now 114 days into Moscow's self-declared military operation in Ukraine, the top economies of the West are turning their backs on the Russian
president's get together at the St. Petersburg International Economic Forum. As the financial elite snub what is often dubbed the Russian devils.
Ukraine's bid to join the EU is enjoying a major boost as officials there say it should get candidate status in the wake of the conflict. The EU's
Ukraine candidacy move the first step and what is a very long road is, though a powerful message to Moscow.
Russian President Vladimir Putin is offering his own message a short time ago.
Here's some of what he had to say.
(BEGIN VIDEO CLIP)
VLADIMIR PUTIN, RUSSIAN PRESIDENT: The United States believe they won the Cold War, they have declared themselves God's Messenger on Earth, and
without commitments and only interests. And these interests are declared to be sacred. They don't even notice in the fact that in the last decades, new
powerful centers have been formed on earth.
(END VIDEO CLIP)
ANDERSON: Well, there's an awful lot of course going on the ground in Ukraine as well. Our reporters covering this story from all angles across
the world in major cities where the news is breaking from St. Petersburg to Paris and Kyiv to Brussels.
Let's begin with CNN's Fred Pleitgen who is live from St. Petersburg for us. Fred, you listened to the President's speech. What was your key
takeaway?
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, I think you call it a combative, and Becky I certainly have to say I think that
pretty much hits the nail on the head. And in fact, Vladimir Putin started ripping into the United States and the West from the moment that he began
his speech saying that what we just showcase there that after the U.S. had won the Cold War, as he put it, that he believed that the U.S. had become
arrogant.
He sort of tried to portray the world as being divided into the West and the others of possibly trying to draw, for instance, developing nations on
the side of Russia as well.
But I think one of the key takeaways from all of this is that if anybody had thought that Vladimir Putin was going to change course or back down, as
far as the war in Ukraine is concerned, that certainly does not appear to be the case.
In fact, he said that what the Russians call their special military operation will continue until all of Russia's objectives are met. He calls
it the operation in Donbas now.
Of course, many of the Eastern District of that country is where a lot of the fighting is currently going on. And he also said if there was any
economic fallout after the sanctions had been imposed, that is all also the fault of the West. Let's listen in to what he had to say.
(BEGIN VIDEO CLIP)
PUTIN: Russia's actions in Donbas to liberate Donbas have nothing to do with it. Today's price rises and problems with the gasoline and inflation
are a result of systemic mistakes by the current U.S. administration and the European bureaucracy.
That's where the causes are, only that I will mention alteration. Yes, it did play a role, but the root causes are in their erroneous economic
policy.
(END VIDEO CLIP)
PLEITGEN: Of course, such huge fallout economic fallout around the world from the events in Ukraine, but again, the Russian president there laying
the blame. Once again, at the West as of course Western nations fully blame Russia, for everything that's going on, on the ground in Ukraine is quite
interesting.
Because of course, the Russians, Becky are aware of the fact that their economy is right now in dire straits, things are very difficult. But
Vladimir Putin also says he believes that the Russians can reorient their economy and in fact become stronger in the future, Becky.
ANDERSON: Fred, what's the mood like there?
PLEITGEN: Well, that's a very interesting question, because it is more of a low key event, I would say it is noticeable that the Western companies that
used to be here, the Western officials that used to come here are very notably absent.
And when you see for instance, that right now, Egypt is one of the main countries that are showcasing here, China, and also Kazakhstan as well but
for instance, the Chinese president, he only is here via video message.
And the same is true for Abdel Fattah el-Sisi as well. So certainly you can see that things are a lot lower key and you can see that there is not a
high degree of optimism.
I would say, however, of course, the Russian firms, the Russian companies, the Russians, reasons that are here understand that they are going to need
to pull through and now of course; they have this new roadmap from Vladimir Putin.
I was able to speak to one of the top Russian senators, he's actually Deputy Speaker of the Duma, who said to me that he believes that Russia
actually prevented a larger war with NATO by invading Ukraine. Let's listen into what he had to say.
[11:05:00]
(BEGIN VIDEO CLIP)
KONSTANTIN KOSACHEV, RUSSIAN SENATOR: I believe that the Russian military force has prevented a much broader and much larger conflict between Russia
and NATO in the future. So we are all aware about the losses, which take place now.
But I am absolutely sure that we have managed to prevent a huge war probably assert ruled war, nobody knows. But I believe that the price which
everybody pays now is affordable.
(END VIDEO CLIP)
PLEITGEN: That's Constantine Casa chef there, very prominent senator in Russia Federation Council speaking quite openly about Russia's pretty big
losses on the battlefield and what they call their special military operation.
But you can see here that the Russian is very well aware of the fact that their economy is in big trouble and very well aware of the fact that a lot
of things are going to change very fundamentally for this country in the coming months and indeed, the coming years, Becky.
ANDERSON: Fred Pleitgen is in St. Petersburg, fascinating. Thank you, Fred. Well, we also know seeing what may be a subtle shift in some Western
countries views about this war.
A White House official, now saying the U.S. has been in talks with Ukraine about a "negotiated outcome with Russia". The French president is feeling
the heat for expressing that very same idea recently.
More of our coverage now Nada Bashir is in Paris, Salma Abdelaziz is standing by in Kyiv, Matthew Chance is reporting on the EU in Brussels.
Let's start with you, Matthew, because we have had what is a certainly symbolic, if not very significant step out of Brussels today, just explain.
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, that's right. I mean, the European Commission, which is the executive body of the
European Union, has given its recommendation that Ukraine should become a candidate for European Union membership.
That doesn't mean it's going to be approved, that will happen in a week from now, when there's a full EU meeting elsewhere. And it doesn't mean
it's going to become a European Union country anytime soon, that could take a decade, possibly longer for it to bring its standards in line with EU
demands, in terms of its judiciary and its laws and things like that.
But it is a very important moral boost for Ukraine, because it has been fighting, you know, this conflict with Russia, again, in this latest
dynamic phase for the past couple of months for the past four months.
And in some ways, the show of European support here in Brussels, is a recognition of that aspiration to join this western institution. Take a
listen to what Ursula von der Leyen had to say, she's the European Commission's Chief.
(BEGIN VIDEO CLIP)
URSULA VON DER LEYEN, EUROPEAN COMMISSION PRESIDENT: We all know that Ukrainians are ready to die for the European perspective. We want them to
live with us the European dream.
(END VIDEO CLIP)
CHANCE: Right. Well, there's been obviously very positive response from Ukrainian officials. Ukrainian president saying will help us with our
victory, the foreign minister telling us earlier of Ukraine that it would make the EU stronger and safer, as well as Ukraine.
But there's been a much more muted response from Moscow. And the big concern, of course, is how Moscow will act when it takes on board this idea
that now Ukraine could join a prominent Western institution like the European Union.
At the moment, its comments have been muted. It said it just but what's the phrase that the spokesperson for the Kremlin said this requires increased
the tension he said now from the Kremlin, but that, but that is not a good sign. And it's obvious that this development will not go down well, in
Moscow.
ANDERSON: --and thank you, Matt, at this point, because a huge boost for morale, at least, that was Matthew's line there. But this process of EU
membership could take years and years.
We can talk about what comes next. But does ultimately European membership, however long it takes. Is that something that those you speak to there,
want at this point?
I mean is this ultimately a prospect that makes Ukrainians at this point in what is a bloody conflict? Does it make them feel more confident about the
future?
SALMA ABDELAZIZ, CNN REPORTER: I think if anything, Becky some of them feel like this is long overdue. We've heard President Zelenskyy time and time
again say that the Ukrainians dying on the frontlines in this country are not just dying for Ukraine.
He feels that they are protecting Europe at large. One of the comments you hear again from the President, time and time again is that request for
security guarantees to give a backbone to Ukraine to tie its fate to the fate of larger Europe.
So for many Ukrainians this is something that is a recognition of what they feel they should already have. They should already be allowed into the
European club.
[11:10:00]
ABDELAZIZ: But of course, it is a major symbolic moment for President Zelenskyy was quick to take to social media. I want to read you what he
wrote after the announcement from the - about the candidacy status.
I commend the positive at you at EU Commission conclusion on Ukraine's candidate status. It's the first step on the EU membership path that will
certainly bring our victory closer, grateful to Ursula von der Leyen, and each EC Commission member for historic decision; I expect the positive
result from the European Council next week.
So in many ways, this is the beginning of something that President Zelenskyy has been pleading for since the beginning has been pleading for
before the start of this conflict, it begins to take those steps towards tying the fate of Ukraine to larger Europe.
And it's that recognition, again, that the security of Europe stands with the security of Ukraine that the sovereignty of this country matters to the
larger region, Becky.
ANDERSON: It's not clear what that victory that the Ukrainian president speaks of there in his tweet looks like though at this stage, is it not?
Let me bring you in the French President Emmanuel Macron finally visiting Ukraine for the first time since the war began.
He's been adamant that Moscow and Kyiv have got to work together to broker peace talks and to get into peace talks. And he's been trying to broker
those. He's been in Kyiv.
We also hear from Washington that the U.S. is mindful of getting these two parties around the table again. Have we heard from President Macron since
his trip to Kyiv and has anything changed as far as yearly sale is concerned?
NADA BASHIR, CNN REPORTER: Well, certainly Becky, the optics of Macrons visit was particularly important his first wartime visit to Ukraine. And
really, they're sending the message of support for President Zelenskyy and of course, for Ukraine's European aspirations. But that he has faced
significant criticism for a woman who have said is championing those open lines of dialogue and communication with President Putin.
And not only throughout this country, but also, of course, in the early stages before this conflict began, when we saw that buildup of Russian
troops on the Ukrainian border.
Now, he has faced criticism, he recently just little over a week ago, face significant backlash for saying that we should avoid the humiliation of
Russia if we are to see negotiated peace deal in this conflict.
But we heard from President Macron he spoke to French media during his trip to Ukraine speaking from Kyiv. And he said that those channels of dialogue
need to remain open.
He did say that, of course, he is still waiting for a gesture from President Putin for those talks to take place. There are some preconditions
that he is waiting for. But he did say that when the time was right, he will continue to speak to President Putin with full transparency for
President Zelenskyy.
And that has been the concern that because we have of course seen other NATO allies and European Union leaders, not engaging in those direct talks
with President Putin, Macron are really leading on that front of keeping that line of communication open with President Putin.
But we also, interestingly heard Macron speaking this week saying that we you know, in order to achieve a negotiated peace, the end goal cannot be a
crushing Russia.
Those were his words that cannot be the angle because you can win the war, but you will not win peace. And that is the key here his point and what are
you seeking and according to President Macron, what President Zelenskyy is also seeking is to achieve peace, at least for now, through that negotiated
deal, potentially, between Ukraine and Russia.
However, he did note and did concede that at this point, at this stage in the conflict, there's direct lines of communication between Russia and
Ukraine do not seem to be open right now. Becky?
ANDERSON: Let me bring back in, thank you. Let me bring Matthew back in at this point. To all of you this is fascinating. Matthew, as Nada was
speaking there, we brought up the images today of those major European leaders with the Ukrainian president, and it struck me as it will obstruct
so many people very was in not fatigues, but effectively the same sort of T shirt that you've been wearing since the start of this.
He is Ukrainian leader. The others are dressed in suits. And here is the guy who's in his sort of battle dress, as it were. I just wonder what you
made of those images. I mean, you've now - you've been reporting on Ukraine extensively.
You've also been based in Russia for as for as long as you have. I want to get your sense of these images that you see out of Kyiv. Today, what we've
heard from the Russian President in St. Petersburg today and this sense of whether we may be in a different space as far as the West is concerned in
considering how this conflict might end.
[11:15:00]
CHANCE: Look, I mean, for me, this whole episode has underlined how much the world has changed since the end of February, when Russia sent its
forces across the border into Ukraine.
The idea that European leaders will be beating a path dressed in their finest as you, as you mentioned, to the bunker, where Volodymyr Zelenskyy
is effectively leaving his country against the Russian invasion.
And offering him a path towards membership of the European Union is something that I think not even Volodymyr Zelenskyy thought would happen
this time last year.
And it's certainly not something the Russians thought would happen. They've spent a decade or longer fundamentally opposing the expansion of Western
institutions like NATO, and like the European Union.
And it must fill the halls of power in the Kremlin, with horror, when they see this, these kinds of meetings taking place of Volodymyr Zelenskyy being
embraced literally by the French president, you know, in the streets of Kyiv.
And, and the country being brought into the Western European vote. At the same time, we're seeing this St. Petersburg Economic Forum that meant to be
the showcase of business in Russia.
The shiny frontage of this vast country where world leaders traditionally both beat the path there and the heads of corporations go there to sign
deals this time, there was a delegation from Cuba, a delegation from the Central African Republic, delegation from the Taliban from Afghanistan, you
know, not to mean those regimes by any means.
But it's not the same as the world's most powerful political and business leaders going to Russia. That has changed.
ANDERSON: Matthew Chance is in Brussels, Nada is in Paris, Salma is in Kyiv; to all of you thank you very much indeed for your insight and your
analysis, a day to take stock as we consider those images.
As Matthew rightly pointed out, it's a big week of course coming up next week, it's g7. Week after that is NATO. There is an awful lot going on in
this kind of world of diplomacy. You're watching "Connect the World". You'll get it all here.
We're live from London Of course, it's being called a dark day for press freedom. After years of Port battles, the UK is agreed to extradite Julian
Assange to the U.S. as they yelled hang Mike Pence insurrectionists closed in on then U.S. Vice President Pence they got very close indeed. How close,
well we'll have the very latest from the January 6 hearings for you.
(COMMERCIAL BREAK)
[11:20:00]
ANDERSON: To limit the big news out of St. Petersburg and Brussels today, there's also a major development out of London for you more than a decade
of drama involving Julian Assange appears to be coming to a head.
Today the British Home Secretary has proved his extradition to the United States. The WikiLeaks founder is facing espionage charges there after the
cite published thousands of classified files and diplomatic cables back in 2010.
He could face up to 175 years in prison. WikiLeaks and his --wife say they will appeal the home office's decision. CNN's Nic Robertson is here with
more details and is extraordinary, you know, to speak to how long this has been going on.
You know, at any point over the last sort of decade, but certainly the beginning of the last decade. And we would have --this would have been a
breaking news story, it is still an incredibly important story. But it is it does make you realize just how long this has been going on.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Incremental step by step. I mean, going back 18 months now you have a British court that said
actually it wouldn't be right to extradite him to the United States. They said it would be oppressive.
And this would contradict his sort of his mental health conditions. But now the home office is looking at what the courts are saying now that it's not
oppressive. In fact, they're saying that, you know, in the United States is mental well-being his well-being will be taken care of that.
So short, that it won't be unjust, it won't be, you know, badly using the legal process to his disadvantage, at least, and it won't be it won't be
sort of violating his human rights, that he will have the opportunity, freedom of expression in the U.S. courts.
But I think for his family, you know, they're beginning to realize that the options are running out, his wife today saying absolutely everything that
they can do, they will do.
(BEGIN VIDEO CLIP)
STELLA MORIS, JULIAN ASSANGE'S WIFE: We're not at the end of the road here; we're going to fight this. We're going to use every appeal avenue. And
we're going to fight; I'm going to spend every waking hour fighting for Julian until his free until justice is served.
(END VIDEO CLIP)
ROBERTSON: So 14 days, 14 days to appeal here, they can appeal through the High Court through the magistrate's courts, they can say that they you
know, a next resort for them will be if they can't get what they want here in the UK.
They'll take it to the European Court of Human Rights that could stretch out the whole process here, so not the end of the row. But also they're
appealing to the Australian Government remembering that this is a new Australian government and they're reminding them that he is an Australian
citizen and that they should be looking out for his interests and his rights. So these are the options they're speaking about.
ANDERSON: Fascinating. I know you'll stay on it. Thank you. Right, in the U.S. those hearings into the January the sixth Capitol insurrection on a
break for the weekend they will pick back up next Tuesday where they focus on former President Donald Trump's efforts to use the Justice Department to
support his false claim of election fraud.
Thursday's hearing painted a grim picture of what almost happened that day and how close those rioters came to the former vice president. CNN's Ryan
Nobles has the details for you.
(BEGIN VIDEOTAPE)
DONALD TRUMP, 45TH U.S. PRESIDENT: Mike Pence is going to have to come through for us. And if he doesn't, that will be a sad day for our country.
RYAN NOBLES, CNN CONGRESSIONAL CORRESPONDENT (voice over): The third day of public hearings from the January 6 committee focusing on former President
Trump's scheme to convince his own vice president to overturn the 2020 election.
TRUMP: Did Mike Pence do the right thing, we win the election.
NOBLES (voice over): The committee meticulously laying out the strategy concocted by conservative Attorney John Eastman. And the pressure campaign
to get Pence to play along.
UNIDENTIFIED MALE: All the attention was on what Mike would do or what Mike wouldn't do.
GREG JACOB, FORMER COUNSEL TO VICE PRESIDENT PENCE: Our review of text history. And frankly, just common sense all confirmed. The Vice President's
first instinct on that point, there is no justifiable basis to conclude that the Vice President has that kind of authority.
NOBLES (voice over): Using witnesses from tape depositions to describe a heated phone call Pence had with the former president.
NICHOLAS LUNA, FORMER TRUMP AIDE: I remember hearing the word wimp; either he called him a wimp. I don't remember if he said you are a wimp, you'll be
a wimp. Wimp is the word I remember.
UNIDENTIFIED FEMALE: It was a different tone than I'd heard him take with the vice president before.
UNIDENTIFIED MALE: I think she was uncomfortable over the fact that there was obviously that type of interaction between the two of them.
LUNA: Something to the effect, this is the wordings wrong. I made the wrong decision four or five years ago.
UNIDENTIFIED MALE: Do you remember what she said? Her father called him?
UNIDENTIFIED FEMALE: The P word.
NOBLES (voice over): Pence's former counsel Greg Jacob testifying that Pence exhaustively explored all of his options.
JACOB: We examined every single electoral vote count that had happened in Congress since the beginning of the country. It is unambiguous that the
Vice President does not have the authority to reject electors.
[11:25:00]
NOBLES (voice over): The committee revealing evidence that Trump was repeatedly told his scheme was illegal Pence's former Chief of Staff, Marc
Short testifying.
UNIDENTIFIED MALE: Was it your impression that the Vice President had directly conveyed his position on these issues to the president, not just
to the world through a Dear Colleague letter, but directly to President Trump many times.
NOBLES (voice over): Jacob saying that Eastman knew that too, but continued to insist Pence could act even as he argued democratic vice presidents
didn't have the same power.
JACOB: And he said, absolutely. Al Gore did not have a basis to do it in 2000. Kamala Harris shouldn't be able to do it in 2024. But I think you
should do it today.
NOBLES (voice over): The committee detailing just how much danger Pence was in on January 6 Congressman Pete Aguilar detailing how a Trump tweet
attacking Pence sent the crowd into a frenzy.
REP. PETE AGUILAR (D-CA): Our investigation found that immediately after the president's 2.24 p.m. tweet, the crowds both outside the capitol and
inside the capitol surged.
NOBLES (voice over): And using a graphics presentation showing that at one point, the mob of writers was only 40 feet away from the room Pence was
hiding in. Jacob, who was with Pence at the time, did not know the mob ended up that close.
JACOB: Does it surprise you to see how close the mob was to the evacuation route that you took? The 40 feet is the distance from me to you roughly. I
could hear the den of the rioters in the building while we moved, but I don't think I was aware that they were as close as that.
AGUILAR: Make no mistake about the fact that the Vice President's life was in danger.
NOBLES (voice over): A former White House attorney testifying that he's been seem to accept there would be violence stemming from their actions.
ERIC HERSCHMANN, FORMER TRUMP WHITE HOUSE LAWYER: So you're going to cause riots in the streets. And he said words to the effect of there have been
violence in the history of our country to protect the democracy or protect the Republic.
NOBLES (voice over): The committee also revealing Eastman emailed Trump's former Attorney Rudy Giuliani, about receiving a pardon writing.
JOHN EASTMAN, LAWYER: I've decided that I should be on the pardon list if that is still in the works.
(END VIDEOTAPE)
NOBLES: And it gets the backdrop of Thursday's hearing new information about Virginia Thomas, the wife of sitting Supreme Court Justice Clarence
Thomas, the committee now in possession of emails between Thomas and John Eastman.
The conservative attorney who is at the center of Thursday's hearing, it's compelled the committee to now ask Thomas to cooperate with their
investigation. They've sent her a letter asking her to do just that.
Thomas telling the Daily Caller website that she is open to clearing things up with the committee. All they have to do is ask something they have now
done Ryan Nobles, CNN on Capitol Hill.
ANDERSON: You are bang up to date and watching "Connect the World" with me Becky Anderson live today from London where the time is half past four.
Coming up, returning to Kharkiv, CNN's Sam Kiley is back in Ukraine second largest city. --people are coping with a war that they frankly could have
never imagined.
(COMMERCIAL BREAK)
[11:30:00]
ANDERSON: Right, welcome back. Vladimir Putin is vowing to accomplish all of Russia's military goals in Ukraine. The Russian President is speaking at
the country's annual economic forum in St. Petersburg, a scale down event this year of the boycotts by Western economic powers.
He spoke just after the European Commission's decision to recommend candidate status for Ukraine's EU membership. European Commission President
Ursula von der Leyen saying Ukrainians are ready to die for the European perspective.
Well inside Ukraine, an official says negotiations are underway for the evacuations of civilians hiding in a chemical plant in Severodonetsk.
Another official says evacuations could happen only if there is a total ceasefire. In Mariupol, an advisor to the city's Ukrainian mayor there
describes conditions as medieval.
He says only two to 3 percent of households have water and the risk of disease is spreading every day. Sam Kiley joins me now from Ukraine's
second largest city Kharkiv. Sam has been following this nearly four month long war every step of the way.
And you and I were speaking from Kharkiv just before this invasion began. You are now back there; you've been in and out of Ukraine to report
regularly. Just give me a sense of how much has changed, Sam?
SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, I think the first thing to say returning to Kharkiv, for example, is that the level and scale
of the devastation we have been reporting, all my colleagues indeed have reported on it from here in Kharkiv, and it still doesn't really match up
to what you see with the naked eye, the central administration building systematically dismantled many of the universities for which the city is so
rightly internationally famous.
There were 40 of them originally smashed into rubble, but at the same time it is coming back to life. Even though the front line, Becky from here is
just a few miles to the northeast of the town.
And indeed on our way in last night, there were a number of rocket strikes almost on our route coming in as we were from the southwest. So the war is
not over here, but it feels a lot more distant than it did for example, when I was in places like Kramatorsk, Sloviansk and indeed Sievierodonetsk
where the noose is tightening ever more steadily is tightening slowly.
But that noose is being tightened by the Russians on that crucial area where my colleague Ben Wedeman has been reporting from recently, Becky.
ANDERSON: Yes, and I want to show a clip of your reporting from Sievierodonetsk from I think this is about two months ago as the Ukrainian
military delivered aid to people sheltering from airstrikes.
(BEGIN VIDEOTAPE)
KILEY (on camera): The urgency of these sorts of deliveries cannot be exaggerated just in his flock. There's mostly old people one gentleman is
dying of cancer in front of his wife. She's saying she's living in a double hell since we've been here.
They've been - 568 impacts very, very close. And almost every tree every corner, every bit of this local neighborhood has got the signs of recent
impacts. The Russians are just a kilometer maybe three away.
(END VIDEOTAPE)
ANDERSON: The Russians have now taken most if not all of Sievierodonetsk as we understand it. Where do things stand, Sam, and what comes next in this
war?
KILEY: Well, I think clearly the Russians are really held bent on trying to cross the Donetsk River there. Now when I cross back out Sievierodonetsk
and delicious --there was one remaining bridge that has now been destroyed.
It is for that reason that the local authorities are saying plans to evacuate 500 civilians and about 40 children who are trapped in the
basement of that chemical plant there in the bomb shelters is impossible without a ceasefire.
Because they do have methods to get people across the river but of course they can't do it if they get killed when they come above ground. But that
has been the kind of meat grinder as Ukrainian soldiers have described including among those soldiers people fighting for the Ukrainians.
[11:35:00]
KILEY: But from foreign countries, notably the United States and the United Kingdom, it is effectively a really dangerous killing field in this battle,
because it is the focus of the Russian intent at the moment to try and squeeze off that area.
The last remaining area of Luhansk provinces and Donetsk provinces, so that at least the Russians can claim some kind of victory in the east of the
country.
But we keep hearing from Vladimir Putin how the aims of these operation keep changing, it was effectively regime change, then it went back to
protecting the Donbas the so called the east of the country that they captured mostly in 2014. Then we've heard sort of imperial ambitions from
Vladimir Putin saying he's going to kind of return Russia to the era of Peter the Great, which would extend into Poland and most of the Baltic
State.
So it's very complicated effort to try and understand what the Russians are about. But this is now also Becky, a tipping point. The Ukrainians are
close to running out of particularly artillery, ammunition and their pleas for the help from the international community, particularly for the long
range artillery, I think absolutely critical. These are not lip service, their real needs, Becky.
ANDERSON: Fascinating. Look forward to your reporting. Sam, it's good to have you there. Stay safe with the team. That's Sam Kiley on the ground for
you in Kharkiv.
Well as the war in Ukraine drags on, so do the consequences for the global economy of course. Earlier, we spoke to the first Deputy Managing Director
of the IMF, Gita Gopinath.
She painted a gloomy picture, which includes another possible downgrade of global growth in July. That's in their outlook, have a listen.
GITA GOPINATH, FIRST DEP. MANAGING DIRECTOR, INTERNATIONAL MONETARY FUND: The increase by the Fed and by several other major central banks, when
we're seeing this global tightening of monetary policy is going to raise borrowing costs around the world without a doubt.
I mean, that is part of what is needed to bring down inflation not just in the U.S., but globally. So that is going to be a consequence of it, which
is raising borrowing costs.
And if you are a country that imports commodities, which means that you are paying the higher commodity prices, and therefore having costly fiscal
issues to deal with.
And if you're a country that borrowed heavily in dollar terms in a foreign currency, then you are particularly vulnerable to the current period of
rising interest rates. These are very challenging times.
And we are getting hit by crisis on crisis, the pandemic, which is not fully over. And we have now the war in Ukraine. And importantly, for people
around the world, this is a major cost of living crisis for them and especially in the developing world where food makes up close to 40 percent
of their consumption basket.
The rise in prices that we're seeing is just being felt everywhere, gas prices going up energy prices going up is being felt by households all over
the world.
So if you look at, for instance, global consumer sentiment, I mean, it is I would describe that as being in a depressed state. People are very worried
about the --what is to come, but also having to deal with these extremely high prices in a very uncertain environment.
ANDERSON: So we all know that the global economy has been sluggish while at the same time prices for everyday goods are soaring. You've all felt it at
the petrol pump or at your local supermarket because of the ongoing Russian war in Ukraine and this lingering COVID-19 pandemic.
That combination of slower trade flows and rising inflation spells bad news for economically developed countries, but it could be an even greater
disaster for developing nations as Gita Gopinath just talked about there. Let's take a closer look.
In a nutshell, the U.S. Federal Reserve is raising interest rates to combat inflation. That generally drives up the price of the dollar, making imports
like food or oil more expensive for developing nations.
Compounding problems already caused by the war in Ukraine and COVID lockdowns. Just take a look at these inflation figures from around the
world compiled by the Financial Times.
So when the Fed upsets rates, the situation is expected to worsen for the developing world and the warnings from policymakers, frankly, are pretty
dire.
(BEGIN VIDEO CLIP)
DAVID MALPASS, WORLD BANK PRESIDENT: We think it's the biggest slowdown of the global economy in 80 years.
MATHIAS CORMANN, SECRETARY-GENERAL, ORGANIZATION FOR ECONOMIC COOPERATION &DEVELOPMENT: The low income and vulnerable households in being
particularly hard hit.
ANDREW BAILEY, BANK OF ENGLAND GOVERNOR: And that is a major, major worry and it's not just I have to tell you a major worry for this country. It is
a major worry for the developing world as well. And so if I have to sort of sorry for being apocalyptic for a moment, but that is that's a major
concern.
(END VIDEO CLIP)
[11:40:00]
ANDERSON: Food is central to all of this. Of course, before the war Ukraine exported about 25 million metric tons of wheat a year or more than 61
billion loaves of bread equivalent.
That's before we get into corn, some flour or barley so much more. While those shortages mean higher prices in supermarkets in developed nations,
poorer countries could and will likely go hungry.
Just this week, for example, the World Food Program said it would suspend aid to South Sudan increasing the risk of starvation for 1.7 million
people. And as usual, hunger leads to spillover effects.
(BEGIN VIDEO CLIP)
DAVID BEASLEY, WORLD FOOD PROGRAMME EXECUTIVE DIRECTOR: People don't want to leave home, but if they don't have any degree of peace, or food security
for the children, they will do any mom and dad would do. And so let's make sure we look at this comprehensively.
Because if we do it, right, and if we don't do it, right, yes, you will have famine, mass migration, and destabilization. And I can tell you from
experience and this is not rhetoric, it'll cost you 1000 times more than it will be to feed a child in Chad in Niger, in Jordan, in Syria for 25 cents
a day.
(END VIDEO CLIP)
ANDERSON: Civil unrest is already crept on to the streets in some countries, take Sri Lanka for example. People there are protesting the
country's worst economic crisis in decades, leading to a violent crackdown.
Its currency has plummeted causing those high import costs that we've been speaking about hitting food, medicine and fuel. To help cope with the
crippling shortages, the government there has announced a two week work from home program to ease demand for fuel.
Earlier this week announced a four day work week to allow workers time to grow their own crops. Pakistan facing similar price increases. Former Prime
Minister Imran Khan was even ousted amid opposition claims of economic mismanagement.
The world's largest importer of tea is now urged Pakistanis to drink less of the hot beverage to help keep the economy afloat. Last month in Iran,
anti-government protests were reported in at least 40 cities and towns.
40 cities and towns that were after the government cuts state subsidies on food, swelling the price of some household items by 300 percent. And this
folks is just the tip of the iceberg.
Chile, Peru, Cyprus, Greece, Kenya, Tunisia, Lebanon, all seeing protests. One way that central banks in developing nations might be able to avert
disaster is to raise their own interest rates in the hope of strengthening their currencies.
But already dollar debt to repay after heavy borrowing during the pandemic risks squeezing business owners and stifling trade. And let's not forget
we've been here before.
As the American novelist Mark Twain reportedly said history doesn't repeat itself. But it does often rhyme.
(BEGIN VIDEO CLIP)
MAURICE OBSTFELD, FORMER IMF CHIEF ECONOMIST: In the early 1980s, as the Fed stepped on the monetary breaks and created a situation of higher global
interest rates that indeed helped cause the debt crisis the last decade of the 1980s in many developing countries.
But the situation now is somewhat analogous to what we were facing then, especially because many countries in the developing world have higher debt
levels than before COVID and are therefore more vulnerable.
(END VIDEO CLIP)
ANDERSON: So you see, while inflation is hitting everyone's pockets, it is not hitting them equally. And the civil strife migration and business
slowdown of any crash could mean years of missed opportunities specifically for the developing world.
It's an unenviable choice for governments curb spending to chip away debt or borrow more to power the economy risking default. This is the harsh
reality facing so many nations right now with very, very few solutions, if any insight.
Well, the impact of the Russian invasion we've been saying here could be eating away at your lunch.
CV JONES, FISH & CHIPS: The profit margin to literally evaporating.
ANDERSON: Rising fish prices have people in the UK paying more for that favorite meal, more on that, coming up.
(COMMERCIAL BREAK)
[11:45:00]
ANDERSON: Well, over the catchy tunes of the hospital in Colombians that moving Kanto. You may have seen rectal palms surrounding the town's
colonial architecture. Well, today's "Call to Earth" features the endangered wax palm and the people bring in conservation awareness as they
try to preserve Columbia's rural eco systems, have a look at this.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE (voice over): It's hard to believe this tranquil cloud forest in western Columbia was once under siege. Much of Colombia's
tropical forests served as a refuge to armed groups for decades.
Now with some stability in the region, this forest has become more accessible over the past 10 years, offering scientists a new perspective
into the world's tallest palm.
MARIA JOSE SANIN, PLANT ECOLOGY AND EVOLUTION, ARIZONA STATE UNIVERSITY: Wax farms are incredible organisms because they can grow to be very tall,
but they're not trees, so they don't have wood in their stems.
UNIDENTIFIED MALE (voice over): These giant plants can grow to over 60 meters tall.
SANIN: When we think of palms, I'm sure most people think of beaches and very warm conditions, wax farms like cooler environments, Cloud forest on
slopes and high elevation systems.
UNIDENTIFIED MALE (voice over): They have evolved on slopes across the Andes, but nowhere as plentiful as here.
SANIN: This is where you will find the largest populations that occur worldwide basically because they're endemic from the tropical Land, so they
don't grow anywhere else in the world.
UNIDENTIFIED MALE (voice over): Part of a team of Colombian botanist Maria Sanin and her colleagues discovered in 2018 that some wax farms in
Tochecito had changed sex for the first time ever recorded.
They suspect this rare phenomenon is a survival mechanism against deforestation and other predominant human activities in the area, like
raising cattle.
SANIN: The main conservation problem for wax farms is that they don't have places to grow in; like they need forests they need forest cover. The
problem now is that many of these forests have been transformed or have been cut down and transformed into pastures. And this is what is worrying
us right now is that many of their populations are smaller and smaller.
UNIDENTIFIED MALE (voice over): Well, Sanin and her team are pushing for wax farm ecosystems to be protected. They're also helping local landowners
take conservation into their hands. SANIN: Many people have become aware of this problem and have adult individuals growing in their properties. So
they're collecting the fruits and germinating the fruits under shade taking care of the juveniles while they're most vulnerable to herbivores and to
sunlight, and then bringing these farms to different systems where they can be protected.
UNIDENTIFIED MALE (voice over): Protecting them could offer new opportunities for sustainable tourism and help and make conservation a
national priority, Sanin says.
[11:50:00]
SANIN: We need incentives for people to see this as an economic opportunity as well, not just in - because the farms of cocotte are growing older and
older and will tend to die in this century. But I think the potential for this to grow is there, but it hasn't been developed yet.
UNIDENTIFIED MALE (voice over): Above all, Sanin hopes her fellow Colombia's will grow to love this national symbol as much as she does.
SANIN: I think as Colombians, we grow hearing or overhearing sometimes that Colombia is a very, very diverse country. And I think the wax farms
generate this unique environment and landscape that could help us define what we are and what we have to offer.
These enormous wax farms that completely alter the stop silhouette are a fascinating view.
(END VIDEOTAPE)
ANDERSON: Let us know what you are doing to answer the call with the #calltoearth. We'll be back after this very quick break, stay with us.
(COMMERCIAL BREAK)
ANDERSON: Well now we have been taking a closer look at the repercussions of Russia's invasion of Ukraine and telling you about the impact. It's
having the big impact it's having on food prices. Right here in the UK it's hitting a staple, let me tell you.
CNN's Anna Stewart went out for some Fish & Chips, but she had to dig a little deeper in her pocket.
(BEGIN VIDEOTAPE)
ANNA STEWART, CNN REPORTER (voice over): People flocked to the seaside town of Whitstable a peaceful day out on these Peverley shores. It feels far
removed from the war in Ukraine. But its impact is still reaching the UK shores and Britain's unofficial national dish.
STEWART (on camera): This is delicious. You actually just can't beat eating Fish & Chips right by the seaside. Now this traditionally was considered
quite a cheap meal. But everything you see here is shooting up in price.
From the white fish and the batter used to cook it the potatoes and the cooking oil, the mushy peas even the packaging.
STEWART (voice over): Since last year, vegetable oil is nearly 50 percent more expensive globally; wheat prices are up even more. And the price of
fertilizers made in the UK is up nearly 180 percent which pushes up the cost of vegetables like potatoes.
All key ingredients for Fish & Chips and all that largely a result of the war in Ukraine is one of the world's biggest producers of food commodities.
VC Jones is a family run business.
STEWART (on camera): So how long has this been in your family?
JONES: Oh, 60 years.
STEWART (on camera): 60 years?
STEWART (voice over): The last two years have seen it battered by these rising costs.
JONES: You see the horror going on in Ukraine. Brexit had impacts, prices of fish; everything's gone through the roof.
STEWART (on camera): So much of the white fish that you get in Fish & Chips shops is actually caught in rational waters and that's got more expensive
as a result of tariffs.
JONES: Seeing the price of cod increase week on week to 60 percent so far, it's directly linked to the sanctions.
STEWART (on camera): Your profit margins must be really squeezed.
JONES: The profit margins are literally evaporating.
STEWART (voice over): Down at the harbor local fishermen are bringing up shellfish, the main catch for this seaside town.
CHRIS ATTENBOROUGH, FISHERMAN: Fossil fuel, - bills doubled - is a big cost.
[11:55:00]
STEWART (voice over): For these fishermen and the UK's chippies, the problem doesn't stop there. Not only a price has gone up, but customers
have less money to spend.
UNIDENTIFIED MALE: As your bills have gone up petrol is going up as well. Yes, I definitely will be more conscious I think when I go out.
UNIDENTIFIED FEMALE: I think twice before we decided to go out.
UNIDENTIFIED MALE: To be taught for I'm looking for the cheapest place to have a food because I used to go in the restaurant they only goes there and
now is horrible. The price is nearly double.
STEWART (voice over): For now Fish & Chips still appears to be in hot demand here. But as the cost of living continues to bite, tucking into this
traditional seaside dish may become less palatable. Anna Stewart, CNN, Whitstable UK.
(END VIDEOTAPE)
ANDERSON: That's it from us. Thank you for joining us. I'm Becky Anderson in London. Do stay with CNN.
(COMMERCIAL BREAK)
END
