Russian Sanctions may Rattle U.S. Markets; Putin Faces International Criticism; Eyewitness to Conflict in Crimea
BLITZER: As world leaders discuss how to diffuse tensions in Ukraine, their task in large part hinges on predicting what Russia's president will do. Our Suzanne Malveaux has a closer look into the mind of Vladimir Putin.</s>SUZANNE MALVEAUX, CNN CORRESPONDENT: When George W. Bush met Vladimir Putin --</s>GEORGE W. BUSH, FORMER PRESIDENT OF THE UNITED STATES: I looked the man in the eye. I found him to be very straightforward and trustworthy.</s>MALVEAUX: The bromance was widely panned as naive, particularly after the relationship was strained when Russia offered support to Syria and Iran. When you said you looked into his eyes and his soul -- you'll also be meeting with the Russian leader in about a week or so -- what do you think of Putin now that he's expressed a willingness to supply weapons to outlaw regimes.</s>BUSH: I know that Vladimir Putin understands the dangers of Iran with a nuclear weapon.</s>MALVEAUX: When President Obama first met Putin in 2009, they looked uncomfortable, an observation even Obama acknowledged over the years.</s>BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I know the press likes to focus on the body language and he's got that kind of slouch, looking like the bored kid in the back of the classroom.</s>MALVEAUX: Nobody is bored now, some Democrats and Republicans even questioning Putin's sanity for pushing the world to the brink.</s>SEN. JOHN MCCAIN (R), ARIZONA: I think he like to strut on the world stage and I think it could have an impact on him psychologically.</s>MADELEINE ALBRIGHT, FORMER SECRETARY OF STATE: I think that is the tragedy that is going on. Putin is in many ways, I think, delusional about this.</s>MALVEAUX: Trying to get a read on the former KGB agent fond of flaunting his bare chest and hunting game can be a moving target, and of course, a political minefield. Relations with Russia once seen as a punch line.</s>TINA FEY, COMEDIAN: And I can see Russia from my house.</s>MALVEAUX: People aren't laughing now.</s>SARAH PALIN (R), FORMER VICE PRESIDENTIAL CANDIDATE: People are looking at Putin as one who wrestles bears and drills for oil. They look at our president as one who wears mom jeans and equivocates and bloviates.</s>MALVEAUX: Could anybody predict Putin would be such a pain now? Mitt Romney did, but he was mocked for his warning in 2012.</s>OBAMA: A few months ago when you were asked what is the biggest geopolitical threat facing the United States, you said Russia, not al Qaeda. You said Russia. And the 1980s are now calling to ask for their foreign policy back because, you know, the Cold War has been over for 20 years.</s>MITT ROMNEY (R), PRESIDENTIAL NOMINEE: I have clear eyes on this. I'm not going to wear rose-colored eyes when it comes to Russia or Mr. Putin.</s>MALVEAUX: Suzanne Malveaux, CNN, Washington.</s>BLITZER: International leaders are pushing back against Putin with many accusing him of breaking international law. To some Putin critics, that's no surprise. Let's discuss what's going on. Masha Gessen is joining us. She's a Russian and American journalist. She's also author of the book "The Man Without a Face: the rise and rule of Vladimir Putin". Masha, thanks very much for joining us. Was Mitt Romney right in 2012 when he said Russia, I think he was referring specifically to the leadership of Putin, that Russia was America's number geopolitical foe?</s>MASHA GESSEN, AUTHOR, "THE MAN WITHOUT A FACE": I don't know if he was right about that. I certainly think that President Obama has probably gone too easy on Putin. And part of what we are seeing now is not just the United States but the west's failure to respond to Putin's systematic violations of international law which didn't begin last week.</s>BLITZER: So what should the U.S. from your perspective do that would have credibility with Putin?</s>GESSEN: Well, at this point, it is very difficult to give any kind of advice because at this point it seems to me that there is nothing that can work strategically. Economic sanctions will actually necessitate greater mobilization in Russia and will aid the war effort. And those -- even as a burr on the table which I don't believe it is would again result in greater immobilization. But anything less would embolden him further, it would just be a continuation of the West ignoring what he's doing. So at this point there is no way to think strategically. We just have to think about what the right thing to do is.</s>BLITZER: So you've written -- studied a lot about -- you have done a lot of work on Putin, who is he, what's he all about, where is he from, where is he going. We heard the Secretary of State, Madeline Albright on CNN's "NEW DAY" yesterday say maybe he's delusional right now. Do you believe this guy is delusional?</s>GESSEN: I believe he is very isolated. I believe that he is in a classic dictator's trap. That he is getting very little information. He basically watches his own TV and has been watching it and believing it for 15 years. I don't know if I would call it a delusion but he certainly has a very different view of the world than you and I do.</s>BLITZER: Because he does have these lengthy phone conversations, 90 minutes over the weekend with the President of the United States. They went back and forth. Angela Merkel heard about that call. She said, maybe he is living in another world. Others who know him well or who have worked with him say he is by no means delusional. He is very intelligent. He has his mission. He's a Russian patriot, a nationalist. He's doing what he believes is best for Russia.</s>GESSEN: I don't see a contradiction. I mean he can be delusional and a Russian patriot and irrational in his own framework at the same time. And I think, you know, I think that is all true. I think that at his press conference yesterday, actually, he did something that surprised a lot of people but I didn't find it particularly surprising. He acted the way he always does, like a bully on a playground, like a thug. He kept saying, that's not me. I didn't take that. That was that other guy. And it wasn't bizarre. It only seems bizarre if you expect him to act on the basis of values that are shared in this country. Yes, he does believe that he has a right to go into the Crimea. He does believe that he is doing what the people want both in Crimea and in Russia. He believes it is his historic mission to reunite the Soviet Union.</s>BLITZER: Masha Gessen, the author of "Man Without a Face: The unlikely rise of Vladimir Putin. Masha thanks very much for joining us.</s>GESSEN: Thank you.</s>BLITZER: My next guest had an up-close view of the standoff between Russian and Ukrainian troops in the key air base in the Crimean Peninsula of Ukraine; a confrontation that was nonviolent but was filled with tension. There were warnings shots fired by Russian troops at their Ukrainian counterparts as one of them called for negotiations on the current crisis. Simon Shuster is a correspondent for "Time" magazine. He's joining us now from Crimea. So Simon, you were there. What did you see?</s>SIMON SHUSTER, "TIME MAGAZINE": That's right. We spent the night at the base there, it was called Loebek (ph) with the Ukrainian soldiers. And there was a great deal of tension. I mean they were waiting for the latest ultimatum from Russia to run out. After which, the troops surrounding their base -- the Russian troops threatened to attack. So they were very scared throughout the night, staying up and keeping watch. And when that ultimatum ran out without any attack, the commander of the base essentially said that's it. I've had enough. We are going to lay down our arms and peacefully march on the checkpoint manned by Russians around the occupied air base. That is what they did. They took two flags, one a soviet military banner and the Ukrainian flag and they marched with about 300 men right up to the checkpoint.</s>BLITZER: You have been there for a while now, Simon.</s>SHUSTER: Warning shots from the Russian Soldiers also didn't make them stop.</s>BLITZER: You have been there now for a while. Give us a little flavor of the average person in Crimea. Are they welcoming the Russians, are opposed to the Russians? We know most of the folks who live there are ethnic Russians. You speak to them all the time. What's the situation on the ground like?</s>SHUSTER: Well, first it is important to remember that there are a lot of pro-Russian rabble-rousers and the propaganda -- the pro-Russian propaganda here is quite intense on television. A lot of the people watch Russian TV by satellite -- Russian State TV. They do have a somewhat skewed perception of the new government that has come to power in Kiev. They believe that government is really fascist and ultranationalist. That's not generally true. I mean the new interim president is a moderate pro-Western guy. So he's the new prime minister. So the mood here because, I think large part, because of that misinformation, is really trying to steer Crimea toward Moscow, to make Moscow the new geopolitical center of gravity for this peninsula. And I think if the referendum is held as they are planning in about 2 1/2 weeks, that the people will vote to certainly have I a lot more autonomy from Ukraine and probably to get a lot closer to Russia.</s>BLITZER: Would they want to secede formally from Ukraine. Would they want an independent in Crimea or would they want to be taken over formally by Russia. What's your sense, if they had a free and fair referendum in Crimea?</s>SHUSTER: I think there would be a small minority that would say they want to become a part of Russia, basically be annexed by Russia. I don't think that is in any sense a majority. But for my conversations with people here, the majority would want greater autonomy from Kiev. They do not trust the new government in Kiev. And I think it will come down to control of the purse strings, budgetary issues so that they have autonomy there and their own police force. And it would come down to that. And then the new leaders in Crimea would essentially be able to steer the peninsula into a greater alliance with Russia economically, politically and I don't know if Russia would be satisfied with that. I don't have a sense of whether Putin is actually looking to annex Crimea. But we'll see after the referendum.</s>BLITZER: He suggested at his news conference yesterday, he had no such intention but you are absolutely right. We will see what happened in Crimea, critically at the heart of this crisis in Ukraine. Simon Shuster of "Time" magazine. Thanks so much, Simon, for joining us. We are going to continue to watch the unfolding situation and the crisis in Ukraine, the breaking news -- much more coming up. I'll be back 1:00 p.m. Eastern. That's it for me right now. I'm Wolf Blitzer in Washington "@ THIS HOUR" with Berman and Michaela for our domestic viewers starts after a quick break.