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First Move with Julia Chatterley

Ukraine Marks Independence Anniversary, Six Months of War; Economic Impact of Six Months of Conflict; Soaring Gas Prices Deepen Recession Fears in Europe; Stocks in the News: Nordstrom, Bed Bath & Beyond, Peloton; Survey Reveals Business Reliance in Ukraine; Nearly One Million Ukrainians Seek Safety in Germany. Aired 9-10a ET

Aired August 24, 2022 - 09:00   ET

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

[09:00:00]

(COMMERCIAL BREAK)

ALISON KOSIK, CNN HOST, FIRST MOVE: A warm welcome to "First Move", I'm Alison Kosik and great to have you with us for a special edition of the

program today as we take an in depth look at Ukraine six months on.

Ukrainian President Volodymyr Zelenskyy, saying today that his nation is a country reborn marking not only a half year of conflict with Russia, but

also 31 years since declaring independence. Ukraine bravely withstanding the Russian military onslaught, but its future depends on continued robust

aid from the West.

Joining us on the show to discuss Ukraine's future and its ongoing struggle for survival, Yuriy Vitrenko, the Former Minister of Energy and the CEO of

State Owned Energy Giant Naftogaz whose job it is to maintain crucial oil and gas supplies during wartime.

Plus, Andy Hunder, President of the American Chamber of Commerce in Ukraine, on the Resilience of Local Businesses, who refused to back down in

the face of the Russian threat also, the Resilience of the Human Spirit. We'll check in once again with Daria Khyshenko, a resident of Kyiv, forced

to flee her country and begin a new life as a teacher in Poland.

Ukraine's humanitarian crisis continuing to transform Europe all that and much more, but first, a look at global markets U.S. stocks on track for a

flat open following the S&P's third straight day of losses. Europe also little changed after a weak Asian handover and we continue to see investor

cautiousness ahead of important economic data later this week, as well as the Fed Chair Jerome Powell's policy speech on Friday.

Also today oil on the upswing with Brent once again trading above $100 a barrel, plus another day of weakness in the Euro, which remains below

parity with the U.S. dollar. We'll continue to monitor the markets throughout the show.

But first, an urgent warning from Ukraine's President Zelenskyy about the threat of intensified Russian attacks as Ukraine marks 31 years of

independence. It comes six months into the unprovoked Russian invasion. CNN's Senior International Correspondent David McKenzie joins us live from

Kyiv great to see you David, especially today of all days! How concerned do you think are people in Kyiv about the possibility of an escalation and

violence because of the Independence Day holiday?

DAVID MCKENZIE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well Alison, part of the answer to your question is what you see behind me there are throngs

of people here in this extraordinary line of burnt out and abandoned tanks and APCs from the Russians that were put here on the street as a kind of

commemoration a Russian line of defeat as it were.

This fight has been going on for six months, today. This is also an important anniversary the independence from the Soviet Union and people

have been asked to not gather to stay inside to stay safe because of that threat. But at least behind me you can see many are ignoring that to

celebrate this day, because it's been a long fight the six months.

(BEGIN VIDEOTAPE)

MCKENZIE (voice over): Ukrainian president Volodymyr Zelenskyy barring Ukraine will prevail against Russia.

VOLODYMYR ZELENSKYY, PRESIDENT OF UKRAINE: And every new day is a new reason not to give up their mind because they haven't gone through so much.

We have no right not to reach the end. That is the end of the wall for us. We used to say peace now you say victory.

MCKENZIE: Zelenskyy is continued resolve comes as the country's defense intelligence says there are threats of Russian missile strikes coinciding

with Ukraine's Independence Day. These come as a country marks six months since the Russian invasion began when bombs were first heard in the

Ukrainian capital in the middle of the night. There are big explosions taking place in Kyiv right now.

The following day Russian soldiers were seen near the city firing. Ukrainians vowed to fight and defend their ground. On Snake Island

Ukrainian troop's response to incoming Russian soldiers was seen as a patriotic moment for the country and has become a symbol of hope for

Ukrainian forces.

[09:05:00]

MCKENZIE (voice over): In the early weeks of the war, Russian troops were concentrated on taking Kyiv, occupying and bombing neighboring communities

to get close to the Capital. Millions of Ukrainians were forced to flee, walking through rubble and fallen bridges to safety. The carnage left

behind has been devastating. In our pain Northwest of Kyiv, bodies filled the streets, homes and buildings left in rubble.

And in Bucha, evidence of war crimes quickly emerged, as mass graves were dug to bury the dead. Russian soldiers retreated from Kyiv in defeat, and

refocus their efforts in the south and east. Russian forces were determined to occupy major seaports, putting towns such as Mariupol in the crosshairs.

This maternity hospital in Mariupol was bombed in March, women were evacuated on stretchers to safety. This woman a day before going into

labor, walked down flights of stairs in the destroyed hospital to get to safety and this theater serving as a shelter for children was bombed.

Despite a warning seen from above, in large Russian letters those children were in the building.

The fighting in Mariupol would continue for months, coming to ahead at the Azovstal Steel Plant, soldiers and the remaining civilians were seeking

shelter. The situation was dire.

MAJOR SERHIY VOLYNA, COMMANDER, UKRAINE'S 36TH SEPARATE MARINE BRIGADE: It's a very difficult situation; we have very little water, very little

food left. The situation is critical. It's beyond a humanitarian catastrophe.

MCKENZIE (voice over): In May civilians were finally evacuated from the plant, but many Ukrainian troops fighting to protect the plant were taken

prisoner. In recent months fighting has been concentrated in the Eastern region of the country, the sight of an 8-year battle between Ukraine and

Russian backed separatists. CNN visited the region and met many suffering through the shelling, including 86-year old Lydia, who was stranded and

unable to evacuate.

LYDIA: She tells us she recites prayers to get through the night. I never imagined that my end would be like this.

MCKENZIE (voice over): And now the most pressing situation lies at the nuclear plant in Zaporizhzhia. Renewed shelling has occurred in recent

weeks. The largest nuclear plant in Europe has posed a threat of nuclear calamity for months. Russia took control of the plant in March, and the

video shows they are using the plant to store Russian military vehicles.

As Ukraine passes this grim milestone, the concern is with winter approaching the international community's support for Ukraine will be

tested with rising food prices and rising energy costs to heat homes.

Are you not afraid that the international community your partners may begin to tire of this war?

UNIDENTIFIED MALE: I call it fatigue syndrome. And for me, it's one of the main threats. And we need to work on him with this threat. Because we need

to speak like with you to communicate to ask people don't be on this fatigue because this is very, very dangerous for us.

(END VIDEOTAPE)

MCKENZIE: Well, that is the worry here from officials is that fatigue will set in and perhaps a united front, which is helping Ukraine to eventually

possibly defeat Russia or at least hold them back might weigh there for now, that seems at least Alison, that is not the case.

KOSIK: Well, the aid keeps coming President Biden announced today that a $3 billion aid package its biggest yet is going to Ukraine. What's the

reaction you're hearing?

MCKENZIE: Well, that certainly is very welcomed here. Because I did ask President Zelenskyy, yesterday about the possibility of the aid drying up

as this war grinds on that nearly 3 billion in grants for military equipment, ammunition and training is coming from the U.S. announced by an

official to us yesterday and officially a short time ago by President Biden.

That will be a huge help, but this conflict as frontline in large parts of the frontline hasn't moved for many, many weeks. It's in a period of very

dangerous, static fighting and lobbing of high artillery and if you look at these, this hardware behind me as part of the awful battle of Kyiv. You can

imagine what it's like behind the front lines and areas that the Russians have taken over ongoing allegations of human rights abuses and even war

crimes as this conflict dry, goes on and on and on, Alison.

KOSIK: Certainly a symbolic show of strength behind David McKinsey from Kyiv, thanks so much. The economic impact of this war is being felt around

the world. I want to bring in Clare Sebastian, she joins us live now. Clare, what are you hearing?

CLARE SEBASTIAN, CNN CORRESPONDENT: Well, Alison, you only really have to look at the news today to get a sense of what we're seeing here.

[09:10:00]

SEBASTIAN: The U.K. just announced they didn't has ended all fuel imports from Russia as of June oil, gas, coal all of that now compared to

continental Europe that was not a particularly heavy lift for the U.K., but it is ahead of schedule, and it is all fuel types. So this is a significant

moment it shows how supply chains are being redrawn, reshaped around this war as of mid-August.

Don't forget Europe has also stopped importing Russian coal. The other thing that we're seeing today indicative of the impact of this war on

economies is the German cabinet just approved energy saving measures that will cut gas usage by between 2 and 2.5 percent a fraction, though, of what

is needed to avoid energy shortages this winter. So it's changing the way we live as well. But the overarching impact of it, Alison, something that

all of us are feeling is inflation. Take a look.

(BEGIN VIDEOTAPE)

ANDREW BAILEY, GOVERNOR, BANK OF ENGLAND: The Russian shock is now the largest contributor to U.K. inflation by some way.

CHRISTINE LAGARDE, PRESIDENT OF EUROPEAN CENTRAL BANK: Russia's unjustified aggression towards Ukraine is an ongoing drug on growth.

JOE BIDEN, PRESIDENT OF THE UNITED STATES OF AERICA: We've never seen anything like Putin's tax on both food and gas.

SEBASTIAN (voice over): It's the first Russian bombs fell in the early hours of February 24. The economic front in this war was also emerging.

NED PRICE, UNITED STATES STATE DEPARTMENT: We are disconnecting key Russian banks from Swift.

SEBASTIAN (voice over): A sanctions onslaught aimed at severing Russia's links with global finance.

LAGARDE: We decided then to have a ban now on de facto 90 percent of Russian oil,

SEBASTIAN (voice over): And eventually it hampers its ability to sell its fossil fuels by far its biggest source of revenue. Six months in Russia has

fought back cutting off the gas to parts of Europe, causing it to ration energy to avoid winter shortages and bringing soaring inflation that

threatens the post COVID recovery.

SEBASTIAN (voice over): It's not like Russia invaded Ukraine at a time of global economic stability. Inflation had already started rising sharply in

the developed world, as COVID-19 abated and demand outpaced supply in many areas. A year ago, as you can see, U.S. was already seeing inflation way

above its 2 percent target. By February, the month the war started the U.K. in the euro area, we're also seeing that. And now we're seeing multi decade

highs across the board. And already double digits here in the U.K.

Central banks blindsided by the surge have raised interest rates aggressively.

BAILEY: If we don't bring inflation back to target, it's going to get worse. And it will get worse precisely, I'm afraid for those who are least

well off in society.

SEBASTIAN (voice over): And that's a good sign some economies are already slowing. U.S. and U.K. GDP fell in the second quarter, German growth flat

lined.

RICARDO REIS, PROFESSOR, LONDON SCHOOL OF ECONOMICS: The challenge I don't think is to bring down inflation. The challenge is to bring down inflation

without blinking too much when the economy goes into an unavoidable recession in response to not a monetary, but a real shock.

SEBASTIAN (voice over): So get used to the idea that you're going to have to continue to raise rates through a recession.

REIS: Yes.

SEBASTIAN (voice over): A more dangerous consequence for the world's most vulnerable has been the disruption to the food supply chain. Russia and

Ukraine play a critical role in supplying wheat, sunflower oil, and fertilizer to global markets before the war, many countries including some

of the poorest countries in Africa and the Middle East, completely reliant on their exports.

UNIDENTIFIED MALE: More than 650,000 metric tons of grain and other food that is already on their way to markets around the worlds.

SEBASTIAN (voice over): After 5-month blockade of Ukraine seaports, a UN brokered grain deal providing some hope. Longer term, experts say this war

may bring a shift in the economic order where supply chains are built, not just to minimize cost, but also political risk.

(END VIDEOTAPE)

SEBASTIAN: You know I think that's the point Alison is there in terms of economics. On the international arena, there is a before and after this

war, it's not like if the fighting stops, suddenly Europe is going to start on a large scale buying Russian gas and oil again. So that is the key point

of these economies has to be redrawn and reshaped to adapt to this new reality.

KOSIK: Clare, you mentioned how Russia hit has hit back during this war. But I'm wondering how Russia's economy is doing I mean, we've seen

international sanctions to big international companies leaving Russia is any of that having an impact on Russia's economy.

SEBASTIAN: It's having an impact I was in but it's not in the way that many at the beginning of the war had expected. What we're not seeing is a

collapse in the Russian economy in terms of the financial system. In the early weeks of the war, the central bank was able to stabilize things.

The ruble is now not only stronger than it was before the war started, but it's basically the strongest point in more than four years. Obviously

that's somewhat artificial, no one's actually buying the ruble but interest rates which the central bank hiked during the early weeks of the war have

now come back down again.

[09:15:00]

SEBASTIAN: Inflation is coming back down the growth expectations for the year they now expect not an 8 to 10 percent contraction in the Russian

economy as they did in April, but a 4 to 6 percent contraction.

Now that said on the energy front, yes, Russia has been earning more than previously because of higher prices. But there are big questions around

what is going to happen in December when the EU embargo on 90 percent of Russian oil kicks in. Will they be able to fill the gap by exporting to

Asia? Will the discounts that they've been offering be enough? Because if not, we could see that prized oil revenue that Russia relies on so much

start to come down and that will really impact the economy.

KOSIK: And we will be watching that as well. Clare Sebastian thanks so much. These are the stories making headlines around the world.

The U.S. says it has carried out airstrikes on facilities in Syria used by Iranian backed Military groups. This video here from a journalist in

Eastern Syria appears to show the site where Tuesday's attacks happened. A prominent activist group reports that at least 10 people were killed. The

U.S. says it acted in response to recent attacks against American forces. Iran has condemned the U.S. strikes and denies that it has any links to the

groups targeted.

Pakistan is asking for international aid as monsoon rains threaten a humanitarian disaster in the country. Since mid-June at least 830 people

have been killed by heavy rains and floods. Thousands have been left homeless and bridges livestock and crops damaged.

The number of serious fires in Brazil's Amazon region rose to a 5-year high on Monday. A monitoring agency recorded more than 3300 fire hotspots.

Researchers say this spike may be related to deforestation, although President Jair Bolsonaro suggested either natural causes or indigenous

communities were to blame.

Coming up deepening energy crisis the CEO of Ukraine's largest oil and gas company joins us to discuss challenges ahead of winter plus building a new

life the journey of a Ukrainian refugee and her story of hope next.

(COMMERCIAL BREAK)

KOSIK: Welcome back! Natural gas prices keep raising in Europe as the war in Ukraine continues. Gas supplies from Russia to Europe are down about 75

percent this year. The EU accuses Russia of weaponizing energy but Moscow says sanctions are to blame.

[09:20:00]

KOSIK: European countries including Ukraine now are scrambling to stock up. The Ukrainian oil and gas company Naftogaz is seeking billions of dollars

to buy gas before winter comes.

Joining us now the CEO of Naftogaz, Yuriy Vitrenko thanks so much for being here.

So we are about our Ukraine is about two months away from heating season. Talk with us about where the supply of natural gas stands for winter for

Ukraine. I mean, how many more volumes of fuel you need in storage to feel like customers will be in good shape.

YURIY VITRENKO, CEO, NAFTOGAZ: Currently, we're adding about 1 billion cubic meters per month. But we believe that we need at least 3 billion

cubic meters to be imported, preferably before the heating season so that we go through this heating season, which is supposed to be the most

difficult heating season in our history without any major interruptions. Of course, there are some other military risks like the Russians are targeting

our infrastructure, but at the same time just to have enough gas, that's what we're planning to do.

KOSIK: Do you think you will get to that threshold of 3 billion meters?

VITRENKO: As you rightly mentioned, our biggest problem is to get necessary financing with current record high prices, these 3 billion cubic meters, so

it's from $6 to $9 billion. And that's a lot giving the financial difficulties. Not Naftogaz, but of Ukraine during the war.

KOSIK: Yes, you don't need me to tell you about how high prices are and it's hard to fulfill these orders. What things are you doing to handle the

higher cost?

VITRENKO: First of all, we're producing as much as we can. Even now, for example, under some shelving in some war zones, our people produce natural

gas so that we can add to our storages. We're optimizing our infrastructure to an extent possible, so that we utilize the full extent this winter.

We're also importing right now some small volumes of natural gas from Europe, but it's not enough. And our major limitation is financed.

KOSIK: Of course, exacerbating the energy costs is the shutdown that's coming at the end of the month of the Nord Stream pipeline for three days

talking about the end of August. What are your biggest concerns with Gazprom shutting down the pipeline? Do you really believe this is for

maintenance?

VITRENKO: I don't believe that it's for maintenance. They're putting some pressure on Europe, to not just to end sanctions, but to make Europe and

the whole civilized world to accept their rules of the game, their request to change, basically, a world order. And I'm not exaggerating, that's what

Putin is public interior is about that. So that's why they use gas as a weapon. They use energy as a weapon, again, to put more pressure on people

to mood more pressure on Western governments.

KOSIK: And there is a broad package of sanctions in place against Russia for its invasion of Ukraine, though, because of Europe's dependence on

Russian oil, the EU isn't expected to ban most, crude purchases until December, you're calling for tougher sanctions and harsher punishment for

Russia from the rest of the world. Talk us through what exactly you're looking for?

VITRENKO: It's not, by the way, just about oil, but also about natural gas. Basically, energy exports of Russia; they enjoy exemptions from the current

sanctions. But at the same time, it's the most important revenue stream for the rogue regime of Putin. So that's how he finances this war against

Ukraine.

They're getting about $1 billion paid per day, from their energy exports and were prices even going up they're going to make even more. That's why

it needs to be stopped. So the whole world not just Ukraine, it needs to stop this war as soon as possible. And in order to stop this war as soon as

possible, we need to make some risky moves.

For example, when it comes to energy sanctions against Russia, but also the sanctions can be done in a smart way. For example, through a so called

price gap we advocate for some adjustment, we would even call it a transfer gap, meaning that importers of Russian gas and oil can still buy Russian

gas and oil, but they can transfer money to Russia only up to a certain threshold per 1000 cubic meters of a megawatt hour the barrel of oil.

[09:25:00]

VITRENKO: In such a way, the world makes sure that Putin gets less money also incentivize Putin to stop this war because he will be able to get the

rest from the full price and this transfer gap when he withdraws from Ukraine when he stops the war and pay reparations. So we believe it the

smart move, that is a risky move, but at the same time, we need some real action, some top actions to stop Putin's War.

KOSIK: I want to ask you; because you mentioned the trouble with financing, and I know that your company, it has fallen into default and your 2022

bondholders have rejected a proposal to suspend Naftogaz debt payments for two years. What does this mean for your ability to operate? And what are

Naftogaz's next steps.

VITRENKO: It's a tough situation for us. Because, for example, last year, we made everything possible and impossible to be back in back, we were

profitable after a year of losses. We gained some financial strengths right before the war, and we were confident about our future. And then with the

war, the government had to start a nationwide program of debt restructuring.

And because we're a state owned enterprise, the government insisted that we also have to restructure our debts. That's why we had to do it; of course,

it limits our capacity and our ability now to access global capital markets. And it's very unfortunate, because that's exactly when we need it.

We're not naive, for example, to say that we can now get some like loans from some private lenders because of the war. But we have, for example, a

loan signed with EBRD with some international financial institutions that were ready to provide financing to Naftogaz.

So that's why I hope that was a successful restructuring of the sovereign that we saw a couple of days ago. Now, we will again, sit down with the

government that also was the bondholders. And I hope that we'll find a solution out of this problem because Ukraine needs more energy Ukraine

needs Naftogaz. To provide security of supply to Ukrainians, Ukraine needs Naftogaz also for the upcoming recovery assets for the energy transition

that's something that we're doing even now despite the war. That's why we need to be in good financial shape.

KOSIK: Right. All right, Yuriy Vitrenko, CEO of Naftogaz, thanks so much for coming on the show.

VITRENKO: Thank you.

KOSIK: After the break six months into Russia's war in Ukraine and a determination among businesses to keep going. The results of a survey that

may surprise you, that's next.

(COMMERCIAL BREAK)

[09:30:00]

KOSIK: Welcome back to "First Move". I'm Alison Kosik. U.S. stocks are up and running this Wednesday a mostly flat open with the DOW and the S&P 500

hovering near two week lows. Investors remained in a wait and see mode ahead of Friday's big speech from Jerome Powell.

Investors worry that the Fed Chair will take a hard line on inflation and interest rates amid conflicting signs on the health of the U.S. economy and

the all important consumer.

Nordstrom shares though are falling sharply in early trading after cutting its full year forecast due to what it calls softening consumer demand. This

comes after a similar warning this week from competitor Macy's.

Also today shares of Bed Bath and Beyond are beyond volatile once again. The stock rallying on reports that the troubled retailer has secured a

fresh loan lifeline shares plunged last week after investor Ryan Cohen sold an almost 10 percent stake in the firm and shares at Peloton rallying as

well on news that it's struck a deal to sell its stationary bikes where else but on Amazon.

Six months on from the Russian invasion the American Chamber of Commerce in Ukraine is revealing the resilience of its members. They include Ukrainian

divisions of major American brands, including 3M, Abbott, AB - Visa, and Coca Cola. It found 72 percent of member companies remain fully operational

96 percent plan to continue operations in Ukraine next year. And 83 percent are paying full salaries.

And just over a fifth say their company's assets have been damaged. That could be factories, offices, or storage facilities. I want to bring in Andy

Hunder, he is the Chamber President. Thanks for coming on the show today.

ANDY HUNDER, PRSIDENT, AMERICAN CHAMBER OF COMMERCE IN UKRAINE:

Hi, thanks for having me.

KOSUIK: Let's kind of take a temperature check. We've you know, we are three - we are six months in this war in Ukraine. How are member businesses

doing? What are the biggest challenges you see for them? And what's the outlook for businesses there?

HUNDER: Well Alison, I think what the survey clearly shows is the amazing resilience. I mean, we see the resilience that Ukraine and Ukrainians are

shown on the battlefields. And this survey shows the resilience that's being shown on the business fields.

I think, you know, 72 percent of the members are fully operational. And there is hope and belief in the future 96 percent of the members is ready

to continue working throughout 2023. We see very different sectors; we've seen the agricultural sector picking up.

We've seen 33 vessels leave the ports, in and around Odessa over the last couple of weeks. We see things like technology, the internet works better

in wartime Kyiv than in many other European capitals, the banking sector continues to work, I mean, we see that even the banks have given up half of

their armored vehicles to the army, but they still managed to deliver cash to the cash point machines in small towns across the very bigger country.

The mobile and networks are up. So we're seeing a real resilience and business coming together and business supporting paying salaries supporting

the economy. And there is a clear message and this is a campaign that will be further developed.

You know, we are open for business, Ukraine is open for business. And that is a message and we are clearly trying to get across to companies that may

not be in Ukraine yet, but should be there as soon as the war is over. So Ukraine is showing that gets the victory. And it's really you know, getting

ready for to plan budgets and prepare for coming into Ukraine.

KOSIK: Yes, and the resilience of these businesses is really incredible that you speak of, but there are challenges aren't there? What are the

challenges you're hearing from businesses?

HUNDER: The challenges are clear. I mean, the number one is the safety and security of employees I think that is the real number one challenge.

[09:35:00]

HUNDER: Because you know, we still, during the course of today, there have been three times in Kyiv the air raid sirens keep going off. So I think,

you know, we have seen the damage to the business. I think the logistics, the transport costs are a big challenge.

There's a decline in imports and exports operations. And in partners, businesses, many companies have lost clients. But still, they are

resilient. So the message we're trying to get across his do business with Ukrainians, because it's now you know, so important to keep the economy six

months into this brutal war that Russia has launched against the Ukraine, it's really to keep the economy moving.

Because I think this is so important, and it's really getting ready for the recovery is this will be a massive recovery. That's the businesses will be

a big part of in terms of building a new Ukraine build back better.

KOSIK: Right? You are looking ahead, you're looking to when the war does end but at this moment, six months, and it's hard to see an end for it, how

difficult is it for you? And I know you're going to Washington D.C. next week?

How difficult is it to get investment for massive reconstruction that would come after? How difficult is it to get people, you know, companies and

offers to just to hand over money as this war just drags on with so much uncertainty about how it's going to end?

HUNDER: Well listen, I think at the very beginning of the war six months ago, literally this was exactly six months ago, on the 24th of February

when the war started. But the corporations, the companies came together very quickly, and they provided humanitarian aid, over a billion dollars of

humanitarian aid from the large corporations has come across already. So that's been a great support to Ukrainians.

But obviously now, I think there are many companies that are watching. We have seen over 1000 companies that have closed down their operations in

Russia, you know, there is no future for transparent business in Russia.

So what we're seeing to these companies that are closing that have closed their operations as Russia is now is the time to start looking at Ukraine

to start preparing to start planning and to start budgeting. Obviously, you know, the war continues.

And I think it's really companies that we'll be looking into come in to take part in a massive rebuilding this will be probably the biggest

rebuilding of a country, definitely this century, but so much more. And then being a part of this being part of something quite strategic and quiet

phenomenal building a new country.

And I think the role of the private sector here is vital. And these are the companies that won't invest in Russia. I mean, there is no future for them

in Russia. So I think it's really now for them to come to Ukraine, to start planning and to start preparing.

KOSIK: Andy I know those six months ago, you left Ukraine, what was that like to leave? And have you been back? And if you have, what changes have

you seen in Ukraine?

HUNDER: Well, Alison we woke up on the 24th of February in Kyiv when the missiles started flying over into Kyiv and all over Ukraine. It was the

saddest moments of my life. Hearing the air raid sirens and moving west. I think, you know, we did have contingency plans in place. They were clear.

The members had clear contingency plans in terms of a hibernation relocation evacuation. You know, we went to bed throughout February with

jerry cans full of fuel in the car. We had paper maps, because we were told the internet was going to come down. It wouldn't work the mobile network.

So we had - we were prepared. I think it was extremely sad moments. But I think what some of the military experts were forecasting that - Kyiv would

fall within three days. That didn't happen. And this resilience showed by Ukraine, and by the business community.

And I think, you know, business likes leaders, they like to see leadership, which Ukraine and Ukrainians have demonstrated. They like to see those who

take on responsibility. And so, you know, the message is that we are - I've been back in Ukraine since and planning to go back shortly.

And I think it is really, you know, coming together. We see that some over 60/68 percent of our members are back in Ukraine that they're located or

the general managers, the CEOs are back in Ukraine. And it's really now starting to prepare for the rebuilding the reconstruction, the recovery.

And I think this is something that's, you know, has really brought the business community together. It shows that somehow resilient and how strong

the business is? And the courage that Ukrainians have shown standing up to this for--

KOSIK: All right. Andy Hunder, President of the American Chamber of Commerce in Ukraine thanks so much.

HUNDER: Thank you.

[09:40:00]

KOSIK: Coming up after the break soaring prices a leadership contest and interest rates on the rise. Is the UK turning the clock back to the 1970s a

Former Bank of England Governors' take is next.

(COMMERCIAL BREAK)

KOSIK: The UK's economic situation is becoming more precarious. Citibank is predicting inflation will climb to over 18 percent a level not seen in

Britain since 1976. Back then, just like today, shoppers saw soaring prices and the ruling party was in the throes of a leadership change.

The UK economy shrank slightly in the second quarter. That's the first quarterly downturn in over a year, and inflation is racing to into the

double digits.

Howard Davies is the Former Deputy Governor of the Bank of England and the Author of "The Chancellor's Steering the British economy in Crisis Times".

He told Richard Quest he sees similarities with the 70s.

(BEGIN VIDEOTAPE)

HOWARD DAVIES, FORMER BANK OF ENGLAND DEPUTY GOVERNOR: I was in the Treasury in 1976. And can vividly remember the IMF delegation coming in to

tell the government that they couldn't spend any more money.

And now we're not quite at that point yet, though, if some of the more fanciful plans of the Conservative Party candidates for the Prime Minister

were actually carried through then we might find ourselves in that position. So we're not quite as bad as we were in 1976.

But it's not a good situation. But of course, we can always say that there's no situation so bad that it can't be made a bit worse by an unwise

political intervention. And that is what worrying people here are.

RICHARD QUEST, CNN CORRESPONDENT (on camera): What's the one thing that worries you most economically if you take the situation in the world at the

moment UK, EU, U.S. you do pick? What's the one thing that's giving you most collywobbles?

DAVIES: I think it is China, because we've not been in this situation recently where it's been so dependent on what's going on in China. And we

don't understand that as well as we understands what goes on in the U.S.

So when everything depended on the U.S. economy, a lot of people kind of understood that and they knew what they want to look for. In China it's

quite difficult even China watchers like me and I have worked with the Chinese regulators for a long period I still find it quite difficult to

follow just what is happening in the Chinese economy. And if the Chinese economy did fall out of bed in a clumsy way, then that would be an

additional problem which we wouldn't like.

(END VIDEOTAPE)

[09:45:00]

KSOIK: Coming up after the break, the lessons of the war taught by a refugee how one teacher who fled the fighting is helping Ukrainian children

in Poland. That's next.

(COMMERCIAL BREAK)

KOSIK: We've just learned British Prime Minister Boris Johnson has been in Kyiv on this Independence Day. Here he is meeting Ukraine's President

Volodymyr Zelenskyy. The two have been close allies since the war began six months ago.

Six months of war has forced millions of Ukrainians to leave their homes seeking safety beyond the country's borders. Hundreds of thousands of them

have ended up in Germany CNN's Lynda Kinkade has some of their stories and what life for them looks like now?

(BEGIN VIDEOTAPE)

LYNDA KINKADE, CNN AUSTRALIAN JOURNALIST (voice over): Nearly 1 million Ukrainians have fled to Germany since the start of the Russian invasion

according to the United Nations. Berlin is a popular landing pad given his proximity to Poland, Ukraine's neighbor.

SASCHA LANGENBACH, SPOKESPERSON, BERLIN REFUGEE AFFAIRS OFFICES: We have about 25,000 people currently accommodated in our reception centers

throughout Berlin both Ukrainians and asylum seekers from all over the world and we only have a few 100 places left. As you can see here, we will

soon reach the maximum capacity of our reception centers.

KINKADE (voice over): With private accommodation growing scares, many are looking to other options. More than 400 refugees now reside in a container

village on a runway at Berlin's abandoned Airport Tempelhof.

One of the residents is 28 year old Roman. He lost his legs after an artillery attack in Eastern Ukraine. He hopes to receive true prosthetic

limbs, but it takes time says his wife.

SVITLANA KOVEL, UKRAINIAN REFUGEE FROM LVIV: Medical care is good. The only problem is the waiting time. But that's normal. Here there are laws not

like at home. You're just used to other laws and procedures, faster medical appointments, faster treatment. Here it's better quality but it takes

longer

KINKADE (voice over): A few contain is down - and Albina was four months pregnant after leaving Mariupol to seek safety in Berlin they see a future

here.

ALBINA KIRSAN, UKRAINIAN REFUGEE FROM ODESA: We're not going to have a baby here. We are going to stay here. We love Berlin so much and we already

found a lot of our friends here. Here is nice mentality and very good people are now angriness.

KINKADE (voice over): Ukrainian Journalist Svitlana lives at Tempelhof with her mother and daughter. She is most concerned about her 14 year old

child's mental health.

KOVEL: If I see you my daughter need me to help him because she she's very nervous after the war.

[09:50:00]

KOVEL: For me and for my mom, it's easier maybe because we are adult. But for a child it's very difficult.

KINKADE (voice over): Here at an abandoned airport runway, just a few of the millions of Ukrainian refugees whose lives have been completely upended

over the past six months. Lynda Kinkade, CNN.

(END VIDEOTAPE)

KOSIK: Daria Khyshenko was forced to leave Ukraine at the start of the war.

(BEGIN VIDEO CLIP)

DARIA KHYSHENKO, UKRAINIAN REFUGEE, HIRED AS A TEACHER IN POLAND: We were hiding in basements in bombproof shelters, hearing those sirens. It was

very difficult and very scary. You need to focus on what is needed to save your life. I knew we need to--

(END VIDEO CLIP)

KOSIK: Daria took her son and two cats and left Kyiv for her parent's city after her month began having health issues. She once again packed up her

family, this time fleeing to Poland. There she was hired as a teacher by care, a humanitarian for an aid organization working to help Ukrainian

refugees settled into a new reality. Daria says she's more than just a teacher to her students. And Daria joins us now. Thanks for joining us.

KHYSHENKO: Hello, Alison. Thank you.

KOSIK: Hi. So talk with us about how you're doing today? Obviously, you fled since soon after the war began. You've settled in Warsaw, at least for

the time being, how are your son and your mom doing what have the past six months been like for you?

KHYSHENKO: Well, is being long and short at the same time. It feels like forever and one day. And we are OK because we are in safe place. And we

started living normal life again. No sirens, no shelling. And I am part of care team now.

And I am happy to help other refugees and children, their parents. My mom is getting better and better because it's calm and normal. Life it of

course helps. And my son is part of summer in the City program. He goes which are summer day camps where children can participate in different

sports activities and integration activities. So I think it's all very well and back to normal.

KOSIK: Back to normal. Well, what's it been like teaching Ukrainian refugee children? What are the things in the feelings that they talk to you about?

I know that you've said that you're more than just a teacher to your students?

KHYSHENKO: Yes, it's very good feeling to help your Ukrainian children and to help them again, come to normal to help them in all the issues and

difficulties they were facing. And now that it's summertime, and again, those children they were able to continue and not to stay at home, but to

continue going into day camps and to be integrated into Polish society as well, which is very important, in my opinion, to make friends with

Ukrainians and to make friends with Polish kids.

And being part of care team, it feels great because I can help not only children, but their parents, teachers, so many programs that reflect

reality and that help individuals, not just numbers, but I meet people and I talk to them, I see their needs. And as a care, we try to face those

needs.

KOSIK: I know your husband is still fighting in the war in Ukraine. How was he doing?

KHYSHENKO: Well, my ex-husband and he's very well we are Dutch. That's OK. My father is also in the army, even though he's 63 he has joined the army

and he is fighting. And of course, it feels this in our war and about my closest is always it's every day a big stress of course.

KOSIK: Do you plan on going back to Ukraine and rebuilding?

KHYSHENKO: Well, I plan to stay here for a while because I see that what I do here it's very important as well helping Ukrainian refugees who flee

from war and whom I can talk and help.

[09:55:00]

KHYSHENKO: It gives a lot of, you know, it strengthens me from the inside. And it gives me feeling of being needed and of doing something very, very

important. And of course, I want to return to Ukraine. And of course, I hope when the war ends, I'll be able to go back and to rebuild the country

and also to help those who are in need.

KOSIK: Well, you are certainly one of the heroes and all of this Daria Khyshenko thanks so much for all that you do.

KHYSHENKO: Thank you.

KOSIK: As the war in Ukraine reaches the six month mark, organizations are still on the ground helping find out how you can help them by visiting

cnn.com/impact? That's it for the show. I'm Alison Kosik. Follow me on Instagram and Twitter @alisonkosik thanks for joining us. "Connect the

World" with Becky Anderson is up next I'll see you tomorrow.

(COMMERCIAL BREAK)

[10:00:00]

END