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NEWS STREAM

Russian Opposition Leader Arrested At Mass Demonstration In Moscow; FBI Stands Firm Despite Skepticism Of North Korea's Involvement In Sony Hack

Aired December 31, 2014 - 08:08   ET

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


KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong. Let's step away from CNN USA's coverage of the crash of the AirAsia plane to look

at some other news stories this day.

Now a critic of the Kremlin is detained again just hours after his conviction on fraud charges. We'll be live in Moscow with the details.

Plus, the U.S. blames North Korea for the Sony hack, but an investigation by a cyber security company tells a very different story.

We'll have that and more after this short break.

(COMMERCIAL BREAK)

LU STOUT: Now the Russian opposition leader Alexei Navalny is once again confined to his apartment after breaking house arrest to join a mass

protest in Moscow.

Now police detained him at the demonstration on Tuesday after a Moscow court found him and his brother guilty of fraud.

Now Reuters reports more than 100 other demonstrators were also detained.

Now critics say the courts decision is an effort by the Kremlin to silence dissent.

Our senior international correspondent Matthew Chance reported from the center of Tuesday's protest. He joins us now live from Moscow. And

Matthew, has Navalny's arrest triggered ever more anger and more support for the opposition leader?

MATTHEW CHANCE, CNN INTERNATIONAL CORRESPONDENT: It's difficult to say. I mean, certainly Alexei Navalny is a popular figure relative to the

other opposition figures in the country. He had planned a protest for the 15th of January. That protest, we're told, will still go ahead.

The problem at the moment, and I suspect this was intentional, is that we're in the runup now to the biggest holidays in Russia -- the new year

celebrations -- and so many Russians have already made plans. They're not in the country, or at least they've gone and are staying with family

members. And so this isn't a great time to be staging a mass protest.

Of course there are remnants from the protest last night. The authorities say that they've arrested at least 100 people, including Alexei

Navalny himself who has now been returned to house arrest.

But at the moment we're not seeing a sort of escalating series of protests that resulted from yesterday's confrontation.

LU STOUT: Alexei Navalny, he is a popular opposition leader there in Russia, but is he a threat to Vladimir Putin?

CHANCE: I think the potential of him becoming a threat is definitely there. And I think that's what Vladimir Putin and those around him are

concerned about.

He contested mayoral elections in Moscow about a year or so ago and got 27 percent of the vote, which in a city of more than 10 million is

quite a significant number of people. He also seems to be able to get thousands of people, sometimes tens of thousands of people, out onto the

streets in the Russian capital to protest against the government and to demonstrate in his support.

But I think if you put that in broader context of his support nationally, he doesn't look like much of a threat at the moment. Vladimir

Putin's approval ratings still in the region of 85 percent nationally. One of the big criticisms of Alexei Navalny is that it's not clear to what

extent he is popular outside the main urban center of Moscow and some other cities as well.

And so at the moment, not a threat, but there's certainly a potential.

LU STOUT: And also has the treatment of Alexei Navalny from his sentencing, the sentencing of his brother, his arrest, has that intimidated

other Kremlin critics?

CHANCE: Well, Human Rights Watch, among other rights organizations, says that that was the intention for it to be a warning to other people who

are opposed to the Kremlin from demonstrating in such a public way. And certainly, you know, the Russian opposition is somewhat muted, it's

fragmented. And that's why out of that relatively passive world of the opposition in Russia, Alexei Navalny, this anti-corruption campaigner, has

emerged.

And so, yes, I think people will look at this and decide one way or the other whether it is worth them opposing the Kremlin, opposing the rule

of Vladimir Putin at this stage, or whether, you know, it's better for them that they stay at home.

Certainly the calculation over the past couple of years is that it's better to stay at home, although of course Alexei Navalny wants to motivate

people. He wants to get people out onto the street. And he says to them, look, if you don't protest now, then start preparing an explanation for

your grandchildren as to why you didn't act.

LU STOUT: Pretty important story for Russia today and tomorrow. Matthew Chance joining us live from Moscow, thank you.

And now you are watching News Stream. And coming up next, we welcome in the New Year. I'll show you celebrations from Down Under where it

already 2015.

(COMMERCIAL BREAK)

LU STOUT: A lot of harbor activity out there this New Year's Eve. And coming to you live from Hong Kong you are back watching News Stream.

Now the countdown to News Years is just a couple of hours away here in Hong Kong, but celebrations are already well under way on this side of the

world. New Zealand rang in 2015 with this fireworks display from the top of Sky Tower in Aukland, that was about two-and-a-half hours ago.

And Australia has just followed suit with this spectacular show in Sydney.

Now this is the city's second round of fireworks tonight. There was an earlier show at 9:00 p.m. local time for children.

Now U.S. law enforcement officials, they're standing firm on their claim that North Korea is behind the cyber attack on Sony pictures, that is

despite research by a private cyber security firm that points to a very different conclusion.

Pamela Brown has more.

(BEGIN VIDEOTAPE)

PAMELA BROWN, CNN CORRESPONDENT (voice-over): Despite skepticism among some cyber experts, the FBI is standing firm by its conclusion that the

North Korean government is responsible for the devastating Sony hack.

A conclusion reinforced by President Obama.

BARACK OBAMA, PRESIDENT OF THE UNITED STATEES: I think it was an act of cyber vandalism that was very costly, very expensive. We will respond

proportionately as I said.

BROWN: Some private cyber scientists, though, argue the U.S. government got it all wrong, saying that the Sony hack was actually an

inside job. The Silicon Valley based firm Norse presented their case to FBI agents in a three-hour meeting Monday night, evidence they say points to

four suspects, including at least one former employee. A woman code named "Lena" who work for Sony for 10 years before being laid off in May.

SAM GLINES, NORSE CORPORATION: The suspects, at least one had ties to, and critical knowledge of Sony systems, IP addresses, credentials, et

cetera.

BROWN: Norse says Lena and other suspects they've identified had direct ties to the hacking group the Guardians of Peace, which has claimed

responsibility for the Sony breach.

RON HOSKO, FORMER FBI ASSISTANT DIRECTOR: The FBI is not going to expose to the public all the tools in their tool box.

BROWN: Former FBI assistant director, Ron Hosko, says the FBI would have evidence that it would not share with the public, and that the agency

would not point the finger at North Korea without rock solid proof.

HOSKO: They are not going to be embarrassed. The FBI's stamp will be on the answer to this question.

BROWN: Pamela Brown, CNN.

(END VIDEOTAPE)

LU STOUT: Now regardless of who launched the cyber attack, it was a nightmare for Sony. And for an entire week, executives were forced to rely

on a set of outdated communication devices, old Blackberries.

It turns out that older Blackberries run on a special server. It is separated from the company's main computer system and links directly to

email and messaging servers. Now outside Blackberries remained functional even when the company's main infrastructure is hacked.

And finally, a fond farewell to veteran China reporter Jaime Florcruz, a friend we all like to call Jimmy. Now Jimmy has lived in China for over

40 years. And in this piece on CNN.com, he looks back on the incredible history he's witnessed.

Now here, he's with President Jiang Zemin when he was still the mayor of Shanghai.

Now Jimmy has chronicled life in the People's Republic under many leaders -- Mao Zedong, Deng Xiaoping, Jiang Zemin, Hu Jintao and Xi

Jinping. And here, he's with Bo Xilai, once one of the most powerful men in China. Now they were in fact classmates at Peking University back in

the late 1970s.

Now on a more personal note, it has been an honor for me to work with Jimmy over the last decade and to grow as a journalist thanks to his

guidance.

Now with deep respect all of us here at CNN will miss you, Jimmy Florcruz, especially me.

I'm Kristie Lu Stout in Hong Kong. And that's all for this shortened edition of News Stream on the last day of 2014. I'll be back with the

headlines after this short break.

END