it is moving at a very fast pace. >> thank you very much. general, thanks to you as well. i'm wolf blitzer in "the situation room." i'll be back in two hours, 9:00 p.m. eastern, with the latest on the war in ukraine. until then, thanks very much for watching. erin burnett "outfront" starts right now. good evening, i'm erin burnett live in ukrainian tonight and "outfront" tonight, we have breaking news. sabotage groups have entered ukraine's capital. that is the warning from president zelenskyy. in a statement, he said putin has marked him enemy number one, his family, enemy number two, but he says he's staying in kyiv. the capital tonight under siege. the city, dark. str streets deserted.

comes as all men between the ages of 18 and 60 are forbidden from leaving this country. ukraine bombarded with missiles today. more than 160 coming down on many military sites. it was roughly 7:00 this morning when we heard the booms here, then over the next hour or so, at least six rounds of sirens rang out over the city. earlier, we traveled to an attacked air base. a muddy road to a wooded area where we saw very young, ukrainian troops. an officer told me two rockets hit that base just hours before we were there. just moments ago, the secretary of state blinken warning that putin is not backing down.

>> part of the russian plan has been to put kyiv in danger. to assault the capital. to go after other major cities. we're seeing forces come in from the north, the east, the south. that's all part of the plan we've laid out for the world in recent weeks. >> new video just coming in of a mil military school in eastern ukraine now in flames. you can hear the heavy gunfire, see the explosions on your screen. to the southeast of where i am, low flying jets our team saw flying over the port city of person. ukraine also says it has lost control of the chernobyl nuclear site. near the airport, matthew chance was caught in the middle of a fire fight involving russian troops. watch this. [ gunfire ]

>> that way? >> let's move down this way against the wall. >> as of tonight, we believe tanks are still streaming across the border. they have been streaming across the border from russia all day. right, so you had all of these strikes across this country. more missiles came down across ukraine, then the tanks and they're coming an coming and coming an with each passing hour, the human cost is growing. there is shock and fear here tonight. we are in a state of marshal law and that means no men between the ages of 18 and 60 can leave this country. now the men we've talked to in k recent days are proud to stay. they plan to stay. i spoke to one tonight. he says right now, as i speak, he is with his newly formed

military brigade. he told me it's hundreds and hundreds of us who are ready to complete our orders. we believe in victory, exclamation point. we reporters spread out across the region covering the story, where ukrainians are fleeing. i want to gbegin with matthew chance. president zelenskyy, this is happening well after midnight. the president addressed his nation, sharing very dire warnings. what did he have to say? >> we're not sleeping. he's not sleeping either. in fact, within the past hour, there's been another public address on his social media platform from the ukrainian president expressing his concerns about his own personal future and that of his family. he said a number of things, but the thing that really struck home is this.

according to our information, he said, the enemy, the russians at this point, the enemy marked me as target number one. they've marked my family as target number two. they want to destroy ukraine. politically. by destroying the head of state. that's him. we have information that sabotage groups have entered kyiv and it kind of talks to that deep seated alarm and it's not just a concern. it's an alarm based on their intelligence assessments. that what russia is planning to do now is encircle ukrainian capital, kyiv, and enter into it and decapitate the government. and to replace it with a pro moscow puppet regime. and obviously, what president zel zelenskyy feels, he's in a bunker we understand at the moment in a secret location, the central part of kyiv still. kyiv still. you know, it just shows you how

concerning and how dire the situation is tonight in the ukrainian capital. i'm looking across the city now here, erin, it it's very, very quiet. most of the lights are out. there is a very spooky, eerie calm over the city. but at any moment, that could drastically change. >> it is that waiting, that exhaustion, that is part of what putin of course is doing. i played a moment ago, i don't know if you heard, matthew, as you were getting ready to talk, but i played some of your encounter with russian forces near kyiv. i just played when you came under fire, but there's something so crucial about what happened to you there in light of what we're now learning about sabateurs in kyiv. tell me. >> these could be the people

president zelenskyy is talking about that have been sent there on helicopters, deployed at an air base to capture an air base on the outskirts of kyiv. we had this extraordinary encounter with them earlier today. we didn't even know they were russian forces at first because we had gone to the air base , made that journey by car. we were told by ukrainian forces that there would be a fight and ukrainians were in control. we were stopped at the gate. look, can we do a live shot? it's too dangerous. remember, i'm speaking in broken russian with them. i said who's in charge? the ukrainians or russians? who's in control? they said it's the russians. i thought it was really odd. i said where are they then? they said we are the russians. it was only at that moment that we understood that we had encountered and come face-to-face with those russian

special forces that had choppered in just houred before and battled off ukrainian military. the fire fight you saw, you played a few moments ago, that followed that conversation and it may have been the start of a counter attack. the ukrainian government say they've recaptured the area. i don't know if that's the case because i'm not there anymore. >> yes, no, i understand that and if ukrainian forces did retake it, that would be significant. we have nothing to indicate that's true or not. we just don't know. matthew chance, thank you very much. when i mentioned that after the missile assault across the country, the tanks were coming in, they were coming in and coming in all day. steady stream. the reason we know that and by the way, coming in in multiple places. the reason we know that specifically in one place is because fred is there.

obviously now here we are again in the wee hours of the morning. what are you seeing from russian forces now? >> hi there. certainly you're right. it was a steady stream of russian forces going into ukrainian territory from the position we were in. which is basically the area that leads to the town of harket. specifically in the night hours, in the past couple of hours we've been there at that final crossing before ukrainian territory, the big thing we heard there was missile launches. there were massive barrages of missiles still going toward ukrainian territory. i think for instance, the area you're in was on the receiving end of some russian missiles. a lot of the missiles launched towards ukrainian territory were launched near the area. it's really massive salvos that are being fired off. we heard some longer range ones

as well. they are really very big. one of the things we notice is that the area from where the missiles were launched towards ukrainian territory seemed to be advancing towards ukrainian territory which leads us to believe that the front line was advancing. then also what happened is that more and more of that russian armor came pouring into ukraine and you know at the beginning, we saw some howitzers. very powerful weapons. then also main battle tanks, which clearly had been dug in on the front line on russian territory then just simply took the main road into ukrainian territory. also because it seemed as if the front line was advancing. but especially toward the evening hours then the night hours, which is where we are right now. it was really a long convoys of russian trucks that also went across. some with armored vehicles, some without. seems as though the offensive we're seeing from the russian invasion is very much ongoing,

speeding up, and shows no signs of letting down. it really is a very dangerous situation but one where you see the russians are pressing this offensive and they have a lot of troops in that border area that are advancing. erin. >> fred, thank you very much. such crucial context because you realize the manpower's coming in and coming in, and coming in. it's filling up the balloon and the question is of course where it's going to go. there has been fighting i want to emphasize, throughout the day, in that region along the south. up in the north. by chernobyl. outside kyiv. so you've seen that, but again, the onslaught of tanks continuing to come in, and weaponry. i want to go to a member of congress who was just briefed. she sits on the house armed services committee. she spent almost ten years in active duty manin the us navy aa russian policy officer. so congresswoman, you know more about this than anyone and just

got theis briefing. what did you learn in that briefing? >> well, i think what we heard in that briefing was about the invasion. certainly about the missiles coming in. stuff that you had been reporting on. we've heard there are areas of heavy fighting. ukrainians are fighting back in certain areas and then we heard about the strength of our nato and eu alliances. you know, i'll just give you some quotes. i know secretary austin said we take article five seriously and will defend every inch of nato secretary. secretary blinken said this would be a catastrophic loss of life and russia alone is responsible. we also went in with secretary yellen and ramundo to talk about the current economic sanctions and i think as you see this,

this is something our intelligence community has been saying since november that putin was moving toward. i think this is a completely unprovoked attack. it's really shocking and appalling to see these tanks moving in, not provoked in a fl fledgling democracy like ukraine. >> u.s. intelligence was right when secretary blinken said missiles would come down across ukraine, that's what he thought would happen, most people anywhere did not think that was actually going to happen. there were a few. most did not. they certainly did not think that here. then it happened to them. so given that u.s. intel is right, what does u.s. intel say about putin's next steps now? because they're very unclear sitting here. >> so, erin, part of the reason i went to ukraine on the foreign affairs delegation, the bipartisan delegation that we

took to brussels then ukraine a couple of weeks ago, was to understand what was happening because we had been hearing from u.s. intelligence since november that this attack, this invasion was coming. we were seeing the troops massing on the border, yet hearing from ukraine that you know, trying to quell the fears. when we met with leadership though, i do believe they realized it, but the economic assaults, so we have been working to get them what they need. stingers. javelins. we're hearing some of those have been used today to in effect fight back against the russians. >> they were. >> and then putin, we've seen him taking over a larger swath of ukraine quite frankly further to the west than i would have predicted, but really taking over large swath. we've seen the troops throughout belarus and coming in from belarus with some of the military from belarus. so it, you know, it looks as if putin is there trying to take

over ukraine and quite frankly, this is what he said he was going to do. >> yes. >> he believes this is part the russian territory. he is trying to reassert. what i think he might not have expected is the unity of nato, the reassertion of our transatlantic alliances then of course he has said he did not want nato troops in the region, well this has drawn an inordinate amount of nato troops into the region. >> right. right. there's questions about what that means for putin himself as well. thank you very much. i appreciate your time. i want to go on the back of that now to james clapper who was the director of national intelligence under president obama and the director of the defense intelligence agency under president george h.w. bush. general, i appreciate your time. so we are now in the early hours of a new day here in ukraine.

president zelenskyy just said the enemy has entered kyiv. he says quote, according to our information, the enemy marked me as target number one, my family as target number two. he did then say he is in the government area of kyiv. he was specific about where he was. said he wasn't leaving. matthew chance said he is in an undisclosed bunker somewhere. what is your reaction to what zelenskyy is saying? >> it's heart wrenching, but it gets to putin's immediate objective is to decapitate the leadership of ukraine and to install subsequently puppets who will be more compliant and obedient to moscow. so i think he's very realistic. very stark. >> putin has threatened anyone, general, who supports ukraine with quote, consequences greater

than any you have faced in history. the words stand out. president biden answered a question about it. he was asked about what putin meant today after his speech and here's the exchange. >> is he threatening a nuclear strike? >> i have no idea what he's threatening. >> general, how likely is it that russia would attack the united states, as he's threatening to do? and what could that attack look like? >> well, first, i found the warning that putin issued chilling. coming on the heels of the theatrical nuclear exercise in which they drilled their version of the triad, their strategic nuclear forces. what is potentially implied of course is almost

incomprehensible, but the russians, a little different attitude about the use of nuclear weapons than we do. i think what it would mean in practice initially would be cyber attacks. so as these sanctions take hold and start to cause pain, i rather doubt putin will sit still for that so he will retaliate with pain on us and that will take the form initially i think of cyber attacks, for example, given sanctions against our financial sector or even portions of our critical infrastructure. >> all right. which of course would be incredibly destabilizing and serious. you said it so well. i think those words are chilling for anyone when they listen to them. i want to ask you one other thing, general, if i may. that is the fierce fighting that took place around chernobyl in the north of this country. at the chernobyl nuclear accident site, which is in ukraine about 80 miles from the

capital. the agency that runs the plant confirmed to cnn that russian forces have taken control of it. again, we understand there was fierce fighting there. what do you think putin is looking for there? and do you have any concerns about that situation with the toxic waste that's there? >> i have very serious concerns about it and i'm surprised there hasn't been more focus on this. i think the reason the russians seized on that as a primary target is they wanted to have control of it and not have to rely on ukrainians to protect it. particularly one ukrainian who might be motivated to sabotage it, make it look like a russian caused another disaster. more over, there are some 15 active nuclear reactors in the ukraine spread across four complexes. and so the russians, who are not known for being discriminate

about targeting, if they either wittingly or unwittingly attacked one of these active nuclear facilities, we could have a chernobyl times two, which would be a disaster for the region, to include ironically enough, russia. so i'm very concerned about nuclear infrastructure whether past or present, in the ukraine. >> thank you very much, general. i appreciate your thoughts. very sobering. >> stay safe out there. erin. >> thank you so much, general. ukrainian soldiers have blown up a bridge and a dam to try to prevent russian troops from advancing. plus, as russian forces move into ukraine, we are seeing more ukrainians leave and we're going to take you just across the border to poland where evacuees are now gathering. we understand some people here leaving this country are waiting up to nine hours and we're live in moscow where anti-war

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we continue to follow the breaking news in ukraine amid russia's invasion of this country. in ukraine's second biggest city becoming a target. president zelenskyy describing the fighting as some of the most intense so far. we're going to talk to both of you. such important parts of the story. sam, let me start with you. blowing up a bridge, the goal to cut off access to try to block them from coming in further. that's according to ukrainian media. tell me what you are seeing. >> yes, we got these reports had been confirmed of these two destructions of bridges over dams out to the east. that is to try to prevent reenforcements being brought in from what is feared is going to

be or could be an attack here on kharkiv, the second biggest city in the whole country. population of at least a million and and a half. importantly, 75% of them speak russian as a mother tongue. that does not mean, of course, that they are natural sympathizers with this unprovoked invasion. indeed, the city is now mostly dark or the public lighting has been switched off. earlier today though, the city was struck with missiles or military installations in or near the city were struck with missiles from the early hours of the morning until well after dusk. not non-stop, but in sporadic and quite heavy bombardments from time to time. we now understand from fred that we're seeing where he is, which is only 50 miles or less from where i'm standing on the other side of the russian border, significant movements of armor

now. main battle tanks and 155 mobile how howitzer units. these are straight out of the soviet playbook. big, heavy muscle moves the soviets used to like to do. they do offer up a degree of vulnerability here to ukraine if they are going to be deployed with the javelin and shoulder launched missiles. so there is an opportunity for the ukrainian military to consolidate and no doubt that is what is going on because there has not yet been sufficient momentum for the russians to come into the city. they may not decide to try to do that. they certainly don't have enough troops to take over and control a city of a million and a half people, but they are potentially being blocked by the ukrainians. we anticipate some pretty bloody days ahead. >> sam, thank you very much. and breaking now, the white house says the united states will accept ukrainian refugees and is prepared to help european

countries. poland first among them. where there is now a large number of ukrainians coming to the border. scott mcclain is near the border with ukraine and scott, i want to ask you what you're seeing there and also, the context that we're learning now that you have in this marshal law that no man between the ages of 18 and 60 is allowed to leave the country. so i know that that's, you know, curious what you're seeing and also, obviously that means a lot of families will be separated. >> you are seeing a lot of families, erin, and what virtually everyone has told us is that they expect to go back. people are coming here. nobody expects to live in poland for the rest of their life and claim refugee status. everyone expects their stay here will be a week, a month, maybe longer, but everybody expects to go back. i just want to give you a quick lay of the land here.

when you arrive here, just in the last couple of hours, they've been handing out these leaflets. they're printed in four languages. they explain if you're fleeing conflict in ukraine, you'll be allowed in and list these reception centers that you can go to if you have no other place to go in poland and they'll find a place for you and your family to sleep. let me swing the camera around and you can see some of the people who have fled across the border. this is a pe destrian crossing. you'll see a lot of women, children. we have seen a few men as well between the ages of 18 and 60, but some of them who we spoke to seem to have second passports that they were going on. this is one of the buses that will take people to one of these reception centers and then they will fan out across the country from there. virtually everybody coming across this border, erin, has gotten to the other side on taxi, train, bus, however they could, then walked across. the reason you're not seeing

more people here though is because there is a huge backlog on the other side. where you have to get an exit stamp from the ukrainians. we are hearing reports there was one gentlemen who is waiting for his wife who's been here for hours. when i spoke to him about two or three hours, she had been waiting for four hours already and she was about a half a mile away from getting her passport actually stamped. here's another account of someone who woke up this morning and realized there was war. listen. >> it was very scary because we woke in the morning and received a call that a war with russia had started. so we immediately packed our things. items, necessities and financial means and immediately left for the border. at the border, we had to wait for nine hours to cross the border. >> and erin, one of the things you will not see here is any kind of presence from the un in

europe and as each country is responsible for the refugees coming in, there's only ten employees in poland and they'll only help if asked by the government and so far, they haven't been. >> all right, thank you very much. i really appreciate that, scott. i think it's fascinating. you see so many women and children, but the men between the ages of 18 and 60 that he's seen seem to have been traveling on a second passport. obviously this is a significant development. last night, we told you reservice had the stay. now it's all men have to remain in the country. next, we are learning new details tonight about what putin is thinking as he wages this unbelievable, unprovoked and stunning war on ukraine. plus, we're live in russia where more than 1,000 anti-war protesters have been arrested despite a direct, personal and chilling threat from putin's authorities. matica to relieve pressure points. and it's temperature balancing so you both sleep just right. and now, save 50% on the sleep number 360 limited edition smart bed.

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we've been prepared for whatever course he chooses to take. >> this comes as the kremlin held a quote, serious phone call with president macron today. now, john and andrea kendall taylor, the former deputy national intelligence officer for russia and eurasia at the national intelligence counsel. john, i want to start with you. the kremlin says macron initiated this call. a call initiated by a french president, but it said putin gave an exhaustive explanation for his decision to carry out this, he calls it military operation. so it's extensive. he defends himself. you get that information from macron, who's the only one sort of still having these conversations with putin. do you think it's important macron keep having them? >> no, i don't think it's

important that he keep having them. in fact, he must be sort of embarrassed because he's talked to putin several times now and putin's lied to his face several times. it wasn't but a week ago where macron was told the russian leader had no plans whatsoever to enter ukraine. i think this is about macron trying to show his importance in europe before the election. i give him credit for trying, but at this point, we know who vladimir putin is. he just invaded an innocent country. that's him murdering innocent citizens. i'm not sure macron's up to it, but i don't put much stock in it. >> macron holding the calls, president biden was clear when asked if he would speak with the russian leader, definitive, he said no. obviously, that's a very different approach. not saying it would get anywhere, but do you think that biden is doing the right thing by closing down any lines of

communication directly? >> yeah, i think at this point, the dialogue doesn't make a lot of sense because the thing to remember is that the united states and europe spent the last two months engaged in intense dialogue with russia and the tanks rolling over the border now show that russia had little genuine interest in that dialogue. i don't think they do now. so at this point, you know, normally i would say i'm a strong proponent of dialogue including with putin. he shouldn't think of it as reward, but something that countries do to try to avoid miscommunication. but at this phase in the conflict, unless putin does something to show he actually is serious and genuine this time, i think that's a good call from president biden. >> so stark words today from a member of the european parliament from france. he said quote, i think vladimir putin is losing touch with reality. he was then directly asked whether putin has gone mad and

he replied definitively, yes. do you agree? >> i don't think putin's gone mad. i think he's doing what he said he was going to do. it's really incumbent on leaders like president biden and others and these leaders in nato to message their own people. to make it clear to them why this is important so if they're feeling pain at the pump or whatever, we understand why it's important. but also to message the russians. if there's anyone that's suffering here, not as much as ukrainians, it's the russian people. in the great tradition of the russian czars and communist party bosses, putin's treating his people like animals. throwing them under the bus. the economy's going to be ruined for maybe a decade. he's going to be supply cant to china. it's going to be hard for russians to travel. there's increased repression in russia and body bags are going to be coming home. really, we need to have some

sort of communication with the russian people because it's clear their leader doesn't care about them. >> so andrea, let me ask you. you know, where do you think is goes next in the sense you've got these tanks coming over, pouring into this country. and you have blinken tonight saying he thinks that putin is looking at some sort of massive human rights violation of the ukrainian people. do you think that civilians will be purposely in the cross hairs? that has not happened yet. >> i think you know, when thinking about the russians and their way of warfare, it is entirely possible. you think about how russia has fought wars in chechnya. there's not a strong regard for human life. we've heard reporting that russia has put together kill lists. people that they will will go after. in putin's own speeches, we've heard him talk about he wants to find justice. he wanted to do justice.

thinking back to what happened in 2014. i think it's entirely possible that they will not have a lot of a lot of reservations in targeting civilians. >> thank you both. i really appreciate your time tonight. our breaking news coverage continues with new numbers the invasion is already having on the ukrainian military. plus the fighting affecting markets around the world. the crucial question. how big will it impact be on the world economy? the u.s. economy? is. (woman) wow, that's something. (burke) you get a whole lot of something with farmers pololicy perks. [echoing] get a quote today. ♪ we are farmers. bum-pa-dum, bum-bum-bum-bum ♪ (j(judith) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how? don't you just ride the wave? (judith) no - we actively manage client portfolios based on our forward-looking views of the maet. (other money manager) but you still sell invesents that generate high comssions, right? (judith) no, we don sell commission products. we're a fiduciary,

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breaking news. it comes as ukrainian president zelenskyy is announcing 137 ukrainian soldiers have been killed in day one of russia's devastating invasion. the attacks are escalating with sabotage groups entering the capital. now, michael kaufman. he is closely tracking the movements of russian forces. he's been doing it for weeks, especially over the last 24 hours. these are the crucial questions.

ukrainian officials believe putin's plan right now is to circle kyiv, overthrow the ukrainian government. what do you see when you look at russian military forces as they take the capital? you saw those russian special forces nearby as an example. what do you see when you look at everything you've been able to video in kyiv? >> i think you are seeing a full scale invasion of ukraine. the first is a series of movements toward the capital from the north. there was at the beginning of the operation, seized airport. it seems like they were repelled. if anything, they were probably stalling for the main body which is still coming towards the capital. then at an attempt at a large conservative attacks from the northeast and the very large breakout of forces from the

south and crimea. >> so we have new video just in that shows a dramatic fire involving a military school in northeastern ukraine. what kind of destruction are you seeing from russian forces across the country? we hear the artillery fire. we hear the thuds around this country. what is the destruction that all of this has brought thus far? >> so there's been a lot of fighting at night. the russian military had opened up with very large barrages of multiple launch rocket systems. although the initial campaign sort of starting off with precision strikes, the russian military is a very fire power heavy military. it's an artillery army with mortal rifle and uses that artillery to decisive effect. you've seen a tremendous amount of shelling and use of different type of rocket systems.

>> short range, long range, cruise missiles. midrange. all of them. today, we took some video of ukrainian tanks leaving the military base that had been hit by two rockets and that's why we were out there. one of these convoys that were going on with some equipment, this one you can see the tank. the tank appears to be sort of soviet era. what do you know about the capabilities of ukraine's military and their ability to fight back right now? >> definitely has been fighting back. the reality is that military is outmatched. that of russia's in many of these attacks, pretty sizable vaccination. the ukrainian military is likely to be outnumbered. that's not counting all the advantages and multipliers that russian air power brings to the

table. so the military has been fighting back, but you see a number of areas where russian -- just far more russian forces with a much greater amount of support in this fight. >> thank you so much. and next, anti-war protesters taking to the streets in russia in spite of putin's very serious threat. plus, an inside look at the toll this invaision could have on th u.s. economy. certified from headlamp to tailpipe. that's certrtified head turn. and it's all backed by our unlimited mileage warranty. that means unlimited peace of mind. mercedes-benz certified pre-owned. translation: the mercedes of your dreams is closer than you think.

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markets opened down 50%. now, they actually only closed the day -- only down 33%. president putin warning russian business leaders, the richest and wealthiest, the oligarchs there would be further economic restrictions, referring to sanctions. calling on them to work, quote, in solidarity with their government. nic robertson is out front in moskow tonight. and you and i were talking through the day today. protests broke out across russia. you witnessed one. you saw police putting them in the van but not before you had a chance to talk to protesters. obviously they were protesting knowing the repercussions could be lifelong. >> reporter: yeah. the government made that really clear telling protesters it wasn't authorized, that you could be arrested, you could be convicted. if you get convicted then that could be on your record forever and that could damage your

future employment prospects. so a lot of people heard that, and they know in this country if you go out and protest on the streets the police could bundle you up, take you off, and that the repercussions can be really harsh, really serious. and despite that, a lot of people came out. there was a scattered protest. more than 900 arrested in moskow, but we went to some of the quieter side streets, found some people there i talked to, and it's heart wrenching listening to people. they really feel the pain of a government that's not acting in their name. that they're shocked at what it's doing, that they really feel for the people in ukraine. and they don't know what they can do. protest is all they have. this is what some of the things that they told me. >> i cannot express how much pain we feel now. it hurts because they're all our friends, our relatives. >> i'm just scared, shocked.

>> you know, there's big graffiti being participated on the walls on some of those side streets as well, no to the war. that's not going to make putin feel any better about the situation he's in, but he's trying to crush these protests because he doesn't want them to grow. this was a relatively large protest for moskow across the country given the fact people really had zero time to prepare for it, erin. >> zero time. they woke up to war just like we woke up to war here. no one knew it was exactly coming that night, the citizens. thank you so much. and i want to bring in jim bianco. for so many years you and i have talked about economic crises, and here we are talking about a war, a different type of crisis. u.s. markets obviously plunged at the open. they did rally by the end of the day, but this is day one of

what's going to be a long military invasion. it's day one of a different world in terms of war in europe. and frankly, nobody has any idea what way it's going to go. so how badly could this work with the u.s. economy? >> you've got to put it into context where the economy was. we were worried about inflation. the markets had been correcting because of higher prices. now, nothing i see in this war is going to produce lower prices. we're probably going to see higher prices for energy and grains between the ukraine and russia. this 20% of world grain exports right there. if nothing else there's going to be supply problem. they're going to have like personnel or broken equipment. so you're looking at even higher prices. so when the federal reserve and people start worrying about high prices and inflation, what happened in the last 24 hours probably going to make that a little bit worse. >> yeah, i think it's so important you point out people think of energy, and that's accurate, of course, the food. and that is a really crucial

thing that comes from ukraine. now, the other thing of course is energy, and you saw energy surge to $100 a barrel. this at 7, 8-year highs now. president biden vowing to ease some of the pain at the pump. this is not good when it comes to energy, that's the reality of it when you look at oil and gas and russia being impacted by severe sanctions. so what happens to gas prices in the u.s.? >> yeah, russia is the second largest producer -- exporter in the world behind saudi arabia. so it's most likely going to be some sort of restriction in world oil. remember oil is fungible, and what that means is it doesn't matter if they ship it to us or europe or anywhere else. that means whoever receives it then doesn't have to receive it from another source we get it from, so it all works together. so if there's going to be some sort of restricted in oil production, it means higher prices. we're probably going to see

higher prices from what we've seen in the run up with oil over the last week or two. and unfortunately it doesn't seem like the oil prices are going to start going down anytime soon. it may moderate. >> thank you very much, jim. and next we're going to take you outside to what we saw through the day. but we also walked around to see what regular people were doing, civilians. and you're going to see what gripped the city today. ♪ ( "right where i belong" by the muppets) ♪ ♪ look at me ♪ c'mon. ♪ here i am ♪ ♪ right where i belong ♪ ♪ i see that face coming back to me ♪ ♪ like an old familiar song ♪ ♪ ♪ what better place could anyone be? ♪ ♪ 'cause you're here with me ♪ ♪ it's all i've been looking for ♪ ♪ and so much more ♪ ♪ and now i'm here ♪ ♪ now you're here ♪ ♪ nothin' can go wrong ♪

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calm. the only places we saw groups of people were atm lines, every single atm. some ran out of money although we did see some still had money early this evening. then there were gas lines. this one was outside the city. we did see a few stations ran out, but the lines were incredibly calm. i spoke to some people and one woman told me as her voice broke she had a plan to leave for poland when the unimaginable happened, but when it did she decided to stay. there's so much we don't know tonight, but we do know the people we have met here over the past cup of weeks have all had an incredible reservoir of strength. thank you for joining us. ac 360 starts now. good evening. ukraine tonight bracing for what the coming hours might bring. already it's seen russian forces attack on three fronts with concerns now growing wha