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LEGAL VIEW WITH ASHLEIGH BANFIELD

President Obama, Angela Merkel Hold Joint Press Conference on Ukraine

Aired February 9, 2015 - 12:00   ET

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


(COMMERCIAL BREAK)

WOLF BLITZER, CNN ANCHOR: Welcome back. We're only moments away from the President of the United States and the Chancellor of Germanu, Angela Merkel. They're getting ready to go to the microphones there, make opening statements, and then answer reporters' question. High on the agenda, the awful situation in Ukraine but certainly the situation, but certainly the situation, the war on ISIS very much on the agenda as well.

Jake Tapper is with here with us here. Jake, this is a really, really sensitive, important, critically decisive moment for the president right now. Does he go ahead and supply weapons to Ukraine or not?

JAKE TAPPER, CNN CHIEF WASHINGTON CORRESPONDENT: And in the past we've seen the president guided by the notion of blowback, the idea that involvement in another country's foreign affairs can result in the circumstances that the U.S. does not want. We've also seen the example of not getting involved, specifically in Syria, also resulting in blowback with the administration, the formation and creation and threat from ISIS.

Right now the big question for the president is does he care more about Ukraine than the Russians do? Because if he does not, if the Russians care about it more, then ultimately, ultimately this is going to resolve itself with Russia grabbing territory from Ukraine, more territory from Ukraine. They already have taken Crimea.

BLITZER: Let me go to Jim Acosta. He's our senior White House correspondent. He's over there. Jim, I take it the delegations, they are already there, the German delegation, the U.S. delegation. Now we're simply waiting for the president and the chancellor to walk in.

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: We're getting close, Wolf, that's right. And the German ambassador to the U.S., Peter Wittig, is in the room. He's on the German said of the room. And, yes, the U.S. delegation has made its way in.

And just, I think, to jump off of what Jake was saying a few moments ago, you know, the president has tried something different with respect to Russia than he has with ISIS and other hot spots around the world -- we're getting the two-minute warning now -- and that is sanctions. They believe, and inside this administration they feel pretty strongly about this, that these sanctions have had an effect on the Russian economy, that it has inflicted a lot of pain on Russians.

And -- but they don't feel like it's changed Vladimir Putin's calculus. It has not changed his decision-making when it comes to dealing with Eastern Ukraine. And so it's interesting because of this decision that he has to make on arming the Ukrainians. It is sort of a departure for him, and that is, I think, why you're seeing so much caution on the part of the Europeans. Because if the United States goes forward with this, they would have to go along with the blessing of the rest of the G-7.

Remember, Russia was kicked out of the G-8 a year ago when all of this was starting to unfold in Crimea. And so now if you do have a rift between the United States and Germany over this issue of arming the Ukrainians, what does that have an effect on potentially down the road if it comes to a more serious crisis in Ukraine? Let's say, moving beyond Eastern Ukraine and the rest of the country. That is a situation that the president is very leery of. He said recently in that interview with Fareed Zakaria he does not want to have the United States and Russia face to face in some sort of military confrontation. And so that is why the White House says, and administration officials say privately, that this cooperative approach is so very, very important, Wolf.

BLITZER: Yes, we see the vice president sitting in the front row. John Kerry just walked in, the Secretary of State. Susan Rice, the president's National Security Adviser, they are all there. The top German leadership, they're there with the visiting chancellor of Germany, Angela Merkel.

Jake, it's very interesting. An event like this, the whole world basically is going to be watching right now. But Putin in Moscow and his top advisers, they're going to be watching this very closely.

TAPPER: Yes, although I'm sure they have their sources to tell them already what's going on. The Russians don't exactly not have intelligence when it comes to Europe especially.

BLITZER: All right, hold on one second. Here comes the chancellor, Chancellor Merkel, the President of the United States. They're getting to the microphones so we'll listen in.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Good morning, everybody. Please be seated. As always, it is a great pleasure to welcome my close friend and partner, Chancellor Angela Merkel, back to the White House. Angela, of course, has been here many times, but this visit is a chance for me to congratulate here on two achievements.

Well into her third term, Angela is now one of Germany's longest- serving chancellors. Perhaps more importantly, this is my first opportunity to publicly congratulate Angela and Germany on their fourth World Cup title. As we all saw in Rio, Angela is one of her team's biggest fans. Our U.S. team, however, gets better each World Cup, so watch out in 2018.

(LAUGHTER) Germany is one of our strongest allies, so whenever we meet it's an opportunity to coordinate closely on a whole range of issues critical to our shared security and prosperity. As Angela and our German friends prepare to host the G-7 this spring, it's also important for us to be able to coordinate on a set of shared goals. And at our working lunch this afternoon, we'll focus on what we can do to keep the economy growing and creating jobs.

As strong supporters of the Trans-Atlantic Trade and Investment Partnership, we agree that there needs to be meaningful progress this year toward an agreement that boosts our economies with strong protections for consumers and workers and the environment. I look forward to hearing Angela's assessment of how Europe and the IMF can work with the new Greek government to find a way that returns Greece to sustainable growth within the eurozone, where growth is critical to both the United States and the global economy.

And we'll be discussing our work to get all major economies to take ambitious action on climate change, including our initiative to limit public financing for coal-fired power plants overseas, and our global efforts to phase down some of the most dangerous greenhouse gases.

Our discussion this morning focused on global security issues. We reaffirmed our commitment to training Afghan security forces and supporting a sovereign, secure and united Afghanistan. We agree that the international community has to continue enforcing existing sanctions as part of our diplomatic effort to prevent Iran from obtaining a nuclear weapon, even as the P5-plus-1 works closely together to do everything we can to try to achieve a good, verifiable deal.

Two issues in particular that dominated our workday this morning, Russia's aggression against Ukraine and the international fight ISIL.

With regard to Russia and the separatists it supports in Ukraine, it's clear that they've violated just about every commitment they made in the Minsk agreement. Instead of withdrawing from eastern Ukraine, Russian forces continue to operate there, training separatists and helping to coordinate attacks.

Instead of withdrawing its arms, Russia has sent in more tanks and armored personnel carriers and heavy artillery. With Russian support, the separatists have seized more territory and shelled civilian areas, destroyed villages and driven more Ukrainians from their homes. These are the facts.

But Russian aggression has only reinforced the unity of the United States and Germany and our allies and partners around the world. And I want to thank Angela for her strong leadership and partnership as we've met this challenge.

Chancellor Merkel and Vice President Biden met with Ukrainian President Poroshenko in Munich over the weekend, and Angela also shared with me the results of her talks in Moscow.

We continue to encourage a diplomatic resolution to this issue, and as diplomatic efforts continue this week, we are in absolute agreement that the 21st century cannot stand idle -- have us stand idle and simply allow the borders of Europe to be redrawn at the barrel of the gun.

So today, we've agreed to move forward with our strategy. Along with our NATO allies, we'll keep bolstering our presence in Central and Eastern Europe, part of our unwavering Article V obligation to our collective defense. We will continue to work with the IMF and other partners to provide Ukraine with critical financial support, as it pursues economic and anti-corruption reforms. We discussed the issue of how best to assist Ukraine as it

defends itself. And we agreed that sanctions on Russia need to remain fully in force until Russia complies fully with its obligations.

Even as we continue to work for a diplomatic solution, we are making it clear again today that if Russia continues on its current course, which is ruining the Russian economy and hurting the Russian people, as well as having such a terrible effect on Ukraine, Russia's isolation will only worsen both politically and economically.

With regard to ISIL, Germany and the United States remain united in our determination to destroy this barbaric organization. I thanked Angela for her strong support as a member of the International Coalition that is working in Iraq.

In a significant milestone in its foreign policy, Germany has taken the important step of equipping Kurdish forces in Iraq and Germany is preparing to lead the training mission of local forces in Irbil. Germany is a close partner in combating the threat of foreign terrorist fighters, which was the focus of a special session of the U.N. Security Council that I chaired last fall. And under Angela's leadership, Germany is moving ahead with new legislation to prevent fighters from traveling to and from Syria And Iraq.

At the same time, both Angela and I recognize that young people in both our countries, especially in Muslim communities, are being threatened and targeted for recruitment by terrorists like Al Qaida. And protecting our young people from this hateful ideology so that they're not vulnerable to such recruitment is first and foremost a task for local communities, families, neighbors, faith leaders who know their communities best. But we can help these communities, starting with the tone and the example that we set in our own countries. So, I want to commend Angela for her leadership -- her leadership speaking up forcefully against xenophobia and prejudice, and on behalf of pluralism and diversity. She's made it clear that all religious communities have a place in Germany, just as they do here in the United States.

And we're grateful that our German friends will be joining us at our summit next week on countering violent extremism, because this is a challenge our countries have to meet together.

And let me end on historic note. This year marks the 70th anniversary of the end of the second World War. It marks the 25th anniversary of the reunification of Germany. So, in a time when conflicts around the world sometimes seem intractable, when progress sometimes seems beyond grasp, Germany's story gives us hope. We can end wars. Countries can rebuild. Adversaries can become allies. Walls can come down. Divisions can be healed. And Germany's story and the story of Angela's life remind us that when free people stand united, our interests and our values will ultimately prevail.

And as we look to the future, as I prepare to visit Bavaria in June, I'm grateful for my partnership with Angela, as Americans are grateful for their partnership with the people of Germany.

Chancellor Merkel?

ANGELA MERKEL, GERMAN CHANCELLOR (through translator): Thank you, President Barack.

I'm delighted to be back in Washington. Nine months ago, we were here for the last time.

This visit here has a lot to do with, first and foremost, the fact that we have assumed the presidency of the G7 presidency this year and that we coordinate on these matters very closely, as we do on others, and obviously, we will address issues related to the global economy when we meet in Bavaria on Schloss Elmau in the summer.

From a European vantage point, I think we can say that we have made significant progress in a number of areas. We have countries who are now back on the growth path. Ireland comes to mind herein particular but also Spain and Portugal. After a strong phase of structural reforms, they have now made significant progress.

In the E.U. -- the new E.U. commissioner that's come in office has launched a growth programs with -- in which Germany will participate. We will pin our hopes basically on growth, infrastructure but also on other growth projects.

For example, the digital, economy. If I think of the state of the digital economy in the United States, there is a lot of things to be done by the Europeans now.

I would say that a free-trade agreement, the conclusion of a free-trade agreement, for example, would also go a long way towards boosting growth. We know that you are very engaged in the Asian- Pacific area. There're a lot of free-trade agreements there as well.

In Germany, we'll come out very forcefully in seeing that the negotiations between the E.U. and the United States on free-trade agreements are pursued in a vigorous manner. It's in our own vested interest, in the interest of the United States but also in the German interest.

We are dealing basically on our G7 agenda with health issues. Let me just mention one.

What sort of lessons have we drawn, for example, from the terrible Ebola epidemic? I think the one thing that we've learned is that the international organizations, the international community has to be quicker in reacting to such epidemics, and the G7 can give a very important contribution to doing this.

And we're also interested, for example, in seeing Gavi be successful. We're delighted to be able to conclude the replenishment conference that has just been completed in Germany so successfully. Then we dealt with security issues this morning. It is true Germany this year celebrates the 25th anniversary of its reunification. This would not have been possible, not have been achievable without trans-Atlantic partners, without the support of the United States of America, and we will always be grateful for this.

And it is one case in point that it is well worth the effort to stand by one's values for decades, to pursue long-term goals and not relent in those efforts.

After we fought in the '90s maybe that things things would turn out somewhat more easily, somewhat less complicated, now we see ourselves confronted with a whole wealth of conflict and very complex ones at that.

We worked together in Afghanistan. We talked about this as well. Germany has decided in its fight against I.S., to give help to deliver training missions, to deliver also weapons and if necessary. We work together on the Iran nuclear program, where we also enter into a crucial phase of negotiations.

One particular priority was given to the conflict between Ukraine and Russia this morning. We stand up for the same principles of inviolability of territorial integrity. For somebody who comes from Europe, I can only say, if we give up this principle of territorial integrity of countries, then we will not be able to maintain the peaceful order of Europe that we've been able to achieve. This not just any old point: it's an essential, a crucial point, and we have to stand by it.

And Russia has violated the territorial integrity of Ukraine in two respects: in Crimea, and also in Donetsk and Luhansk.

So, we are called upon now to come up with solutions, but not in the sense of a mediator, but we also stand up for the interests of the European peaceful order. And this is what the French president and I have been trying to do over the past few days. We're going to continue those efforts.

And I'm very grateful that throughout the Ukraine crisis, we have been in very, very close contact with the United States of America and Europe on sanctions, on diplomatic initiatives, and this is going to be continued.

And I think that's indeed one of the most important messages we can send to Russia, and need to send to Russia. We continue to pursue a diplomatic solution, although we have suffered a lot of setbacks. These days, we will see whether all sides are ready and willing to come to a negotiated settlement.

I've always said I don't see a military solution to this conflict, but we have to put all our efforts in bringing about a diplomatic solution.

So there's a whole host of issues that we need to discuss. Over lunch, we will continue to talk about climate protection, about sustainable development, and the sustainable development goals.

So, yet again, thank you very much for the very close cooperation, very close coordination, and the possibility to have an exchange of views on all of these crucial issues.

I think not only in hindsight can we safely say that the United States have always stood by us, have helped us to regain our unity in peace and freedom, but we can only also say we continue to cooperate closely if it is about solving the conflicts of the world today. Unfortunately, there are many of them, and we will continue to do so in the future.

Thank you for your hospitality.

OBAMA: First question, Steve Muston (ph), the Washington Post.

QUESTION: Thank you. You said -- stress that U.S. and Europe need to have cohesion on the issue of sanctions and on dealing with the Ukraine. And yet the administration is discussing sending lethal weapons to Ukraine, which is very different from what the chancellor said over the weekend. So, I was wondering whether this is a good cop, bad cop act, or is this a real reflection of difference of views on the situation on the ground?

And more broadly, if there's no agreement this week, what lies ahead? Are we looking at a broader set of sanctions? What makes us think those set of sanctions will change the Russian president's mind any more than the current ones?

OBAMA: Well, let me start with a broader point. I think both Angela and I have emphasized that the prospect for a military solution to this problem has always been (inaudible). Russia obviously has a extraordinarily powerful military and you know, given the length of the Russian border with Ukraine, given the history between Russia and Ukraine, expecting that if Russia is determined that Ukraine can fully rebuff a Russian army, has always been unlikely.

But what we have said is that the international community, working together, can ratchet up the costs for the violation of the core principle of sovereignty and territorial integrity, and that's exactly what we've done.

And Russia has paid a significant cost for its actions first in Crimea, and now in Eastern Ukraine. It has not yet dissuaded Mr. Putin from following the course that he is on.

But it has created a measurable negative impact on the Russian economy. And that will continue. My hope is that through these diplomatic efforts, those costs have become high enough that Mr. Putin's preferred option is for a diplomatic resolution.

And I won't prejudge whether or not they'll be successful. If they are successful, it will be in part because of the extraordinary patience and effort of Chancellor Merkel and her team. If they are not, then we will continue to raise those costs. And we will not relent in that.

And one of the things I'm very encouraged about is the degree to which we've been able to maintain U.S.-European unity on this issue.

Now, it is true that if, in fact, diplomacy fails, what I've asked my team to do is to look at all options. What other means can we put in place to change Mr. Putin's calculus? And the possibility of lethal defensive weapons is one of those options that's being examined.

But I have not made a decision about that yet. I've consulted with not just Angela but will be consulting with other allies about this issue. It's not based on the idea that Ukraine could defeat a Russian army that was determined. It is rather to see whether or not there are additional things we can do to help Ukraine bolster its defenses in the face of separatist aggression.

But I want to emphasize that a decision has not yet been made.

One of the bigger issues that we're also concerned with though is making sure the Ukrainian economy is functioning and that President Porochenko and Prime Minister Yatsenyuk can continue with the reform efforts that they've made.

And I'm glad to see that because of our cooperation and our efforts, we're starting to see a package come together with the IMF, with the European Union and others that can help bolster the European economy so that they have the space to continue to execute some of the reforms and anticorruption measures that they've made.

One of the most important things we can do for Ukraine is help them succeed economically, because that's how people on the ground feel this change, this transformation inside of Ukraine. If that experiment fails, then the larger project of an independent Ukraine will fail.

And so, we're gonna do everything we can to help bolster that.

But there is no doubt that if, in fact, diplomacy fails this week, there's gonna continue to be a strong unified response between the United States and Europe. That's not going to change.

There may be some areas where there tactical disagreements. There may not be. But the broad principle that we have to stand up for, the -- not just Ukraine, but the principle of territorial integrity and sovereignty is one where we are completely unified.

MERKEL (through translator): The French president and I have decided to make one further attempt to make progress through diplomatic means. We have the Minsk agreement. The Minsk agreement has never been implemented, quite the contrary is true. The situation has actually worsened on the ground.

So now, there is a possibility to try and bring about a cease- fire. and to also create conditions that are then in place where you have not every day civilians dying, civil victims that fall prey to this.

And I am absolutely confident that we will do this together. I myself actually would not be able to live with not having made this attempt.

So, there is anything but an assured success in all of this. I have to be very clear about this.

MERKEL (through translator): But if, at a certain point in time, one has to say that a success is not possible, even if one puts every effort into it, then the United States and Europe have to sit together and try and explore further possibilities, what one can do.

Just let me point out there that from here that foreign ministers of the European Union last week already tasked (ph) the commission to think about further possible sanctions.

On the issue of what is effective and what is not, I'm somewhat surprised sometimes, just -- just let me mention Iran. For a very long period of time, we have had sanctions in place there. People don't seem to question them. And I think they have been fairly successful if we look at the current state of affairs, what with the negotiations on the nuclear program.

So, I think (inaudible) I think it was a very good thing to put some costs onto the Russians through these sanctions that we agreed on, because we see also that Russia seems to be influenced by this. And this is why I am 100 percent behind these decisions.

As to the export of arms, I have given you my opinion, but you may rest assured that no matter what we decide, the alliance between the United States and Europe will continue to stand, will continue to be solid, even though on certain issues we may not always agree. But this partnership, be it on Ukraine and Russia, be it on combating terrorism on the international stage (ph), be it on other issues, is a partnership that has stood the test of time and that is, I mean, in Europe, we're very close. But the strength of that partnership for Germany and for Europe is indispensable, and this will remain so. And I can say this also on behalf of my colleagues in the European Union.

Sorry. I have to call you myself (inaudible).

QUESTION (through translator): (inaudible) from GPA, the German Press Agency.

President, you said that you have not yet made a decision as to whether weapons are to be delivered to the Ukraine. What would be your red line? What would be the red line that needs to be crossed for your to decide a -- on armament of the Ukrainian army? And what do you think will this hold by way of a promise, because the chancellor said it will make matters worse? And what can the Nobel Laureate Obama do more to defuse this conflict?

And Madam Chancellor, President Putin today demanded yet again that the government in Kiev negotiate directly with the separatists. When do you think the right moment has come to do this? And with -- looking at all of the big issues that you discussed, this breach of confidence due to the NSA affair has -- of the U.S. and German relations -- has that played a role today?

OBAMA: Do you want to go first on that?

MERKEL (through translator): I can gladly start.

The question as to how one assesses the effectiveness of certain measures have been actually dealt with. The president has not yet made a decision, as he said. What's important for me is that we stand very closely together on the question of a new, renewed diplomatic effort. We keep each other informed. We are in close touch. And nobody wishes more for a success than the two of us who stand here side by side.

But this would also mean not only having a ceasefire in place, but to also over and above that, having certain rules in place. And you said the Russian president himself thinks there ought to be direct contact. Let me just point out to you, these direct contacts already exist through the Trilateral Contact Group with representatives from Donetsk and Luhansk.

And the problem of the last few days, and the problem of the last meetings, actually was rather more that there was not really that much of an end result, if they met at all, or if representatives from Donetsk and Luhansk were there at all. Sometimes they didn't even arrive.

And this was after all for me the core of the Minsk agreement, that there are local elections in accordance with the Ukrainian constitution and that the outcome of that is that you have representatives, authorities that can speak for those regions and the Ukrainian president has paved the way for this to giving certain specific status to the oblast of Luhansk and Donetsk.

And these elections are an essential point that will then enable us to say, "Well, maybe now there can be contacts even without a Trilateral Group." And this is after all on the agenda of the many talks that we need to make, but I can very well understand the Ukrainian side, that on the territory that they consider to be part of their territory, and that anything else would violate the territorial integrity, that they want to actually see that elections take place there, and that has also been stated by the President Putin that he wishes to see those elections happening there.