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tv   Real Money With Ali Velshi  Al Jazeera  January 28, 2015 2:00am-3:01am EST

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facebook and google+ pages. we'll see you next time. ♪ america stands on the brink of a new cold war with russia, i journeyed to the front lines in the frozen north where american nato are in a high stake standoffs over huge deposits of oil and natural gas and i'll give you a look at how arctic melting has unlocked a wealth of opportunity and fueled tensions between enemies and talk to an old car war icon who never took his eye off russia, i'm ali velshi and this is real money.
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over the next hour i'm going to take you on a journey that illustrates how russia's confrontation with the west is spreading far beyond ukraine and flash points in donsk have set off a new cold war that sparked tensions ranging from eastern europe to the circle and president obama and david cameron warned of a quote frozen conflict created by russia and eastern ukraine, canada prime minister has been more blunt telling russian president putin get out of ukraine but the message is clear nato has been butting in on the old spear of influence and moscow will no longer take it and will actively protect russian people and interests abbraked abroad but they have been on edge before
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the crisis of ukraine and a lot have to do with the energy and far north of the arctic circle they are competing for natural resources and polar shipping lanes with new urgency and yet what happened in eastern ukraine may have fundamentally changed the game. today a new cold war is brewing. it's 10:00 a.m. on an autum morning and a thousand soldiers are engaged in war games and under the guidance of hundreds of u.s. marines. it's a routine nato exercise in military readiness. >> one minute. >> reporter: but demonstrations of force like this have taken on a new urgency for the west. here beside the mountains in romaine the soldiers are training for battle, a 7 hour drive from ukraine where russian-backed separatist set off the worst confrontation between moscow and the west
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since the end of the cold war. they and other eastern people who remember the past aggressions are worried about the west's ability and willingness to stop an embolden russian president putin. >> it's reality and now we live in a new cold war but it's a danger for real war. >> reporter: not everyone shares the former romanian fears that moscow and the west are bound for armed conflict. and yet an escalating military presence on both sides has left little room for error. in october nato scrambled dozens of f-16s when russia launched a large combat craft near nato air space. nearly two dozen russian bombers and fighters swooped over the north sea, the black sea, the gulf of finland and the
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baltic sea, that intercept was captured here on never before seen video recently declassified by the norweigen military and shows russia new fighter jet the su-34 which can travel more than 2500 miles carrying a pay load of 8 tons of precision guided weapons. events like this happen more than 100 times in 2014. three times more than in 2013. >> essentially what it is the cat and mouse game where they probe the defenses of the other to see how they will react. >> reporter: that game is putting more pressure on nato out posts like this air base in budda where forces until recently cooperated with the russian neighbors. despite good relations with russia they use this center and f-16 to be nato eyes and ears in
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the sky when it comes to russia. norway runs that operation from the military headquarters which it recently moved 600 miles north to budda becoming the only country with a military headquarters inside the arctic circle. one big reason for the move to keep better tabs on russia. buried deep inside an arctic mountain they track bombers on giant monitors an image that has memories of 1950s cold war surveillance and lately that has come roaring back to life. nato and russia has always existed but the crisis in ukraine may have fundamentally redefined moscow's relations with the west. >> i think without question the ukrainian crisis pushed the russia west relationship over the cliff and something that is different from what we had for
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periods. >> reporter: in a speech putin gave to russia parliament announcing annexation of crime yeah he outlined the new vision for the kremlin. moscow would protect what it influence. >> one part in which he warned russia's western colleague that if you compress a spring all the way to its limit at some point it will spring back hard, right, and that is the new foreign policy of russia, it's springing back against this perceived west. >> reporter: in november former soviet leader gorbachef said the expansion of nato and missiles and war in the middle east have contributed to the collapse of west. >> they are on the bring of a cold war and some are saying it has already begun. >> reporter: the stakes of this new cold war are about more than just
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territory and influence. they are also about money. here on the top of the world the battle is being fought over energy. the arctic is home to 13% of the world's undiscovered oil and a third of its natural gas. 8 nations lay claim to this fast melting landscape including russia, canada, and the united states. they alongside china are all pursuing huge reserves of oil gas and coal. >> fueled by hydro carbons and to be stable they need more to come out of the arctic. >> reporter: 2007 russia staked the claim to billions of dollars of arctic oil and gas deposits, too many submarines planted a flag on the floor and canada and
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u.s. scoffed to a 15th century land grab but the move under scores the growing importance of the region. to get a first-hand look i headed north, way north, to the northern most town in the world, on an island in the high arctic called spalbar. many nations including russia are eying this once sleepy coal mining settlement as a strategic base in the arctic frontier. i'm here in norway and much closer to the north pole than we are to the polar bears and burn coal and looking for the carbon dioxide to put it under ground and came upon natural gas. finds like these wet the appetites of energy prospectors but energy is not the only battle for the high north, it's
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also about who controls the high seas. which are increasingly accessible because of global warming. new shipping lanes created by the melting of ice in the arctic could save money for example a cargo ship between western europe and asia goes through the suez canal and doing this shortens the trip 40%, the number of arctic shippers soared in years and they need ports and lines of communication now. it's a big reason why moscow recently unveiled an ambitious plan to build at least 13 new bases and radar stations in former soviet out posts across the arctic. >> not only lucrative for russia economically but tremendously beneficial for russia russia malaysia strategically to control the artery for the global economy. >> reporter: this is under
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norway control has an obvious communication hub for russia and other polar nations that are increasingly interested in the high north. >> that is because of the placement that we have with more activity in the polar sea and we are placed in the that. >> reporter: driving down one of its only two roads, long european has the look and feel of an alpine ski resort and yet it has become a key listening post and research center for activities in the high north where 59% of the ice has melted away since 1979. melting ice in the arctic, it's an ironic contrast to the new freeze in relations between russia and the west. a freeze that steadily is putting old cold war enemies on a path toward a new round of battles whose end game is less about ideology and more about economic control and financial supremacy. in just two minutes we will head to poland where cold war miss
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trust runs deep and apple farmers, yes apple farmers are caught in the center of the economic cross fire, you are watching the new cold war, a real money special report and let me know what is on your mind >> you know how they say that everybody has a purpose in life? well, at one time, i felt that selling cocaine was my purpose. >> we was starvin', just lookin' for a way to succeed. >> the first time i seen rock cocaine was 1980. >> the murder rate was sky-high. >> south of the 10 freeway, was kind of a "no-man's land". >> you know, we're selling it for the blacks. i said, you go into these neighborhoods, there's no cops you can sell it where you want and when they start killing each other, nobody cares. >> i was going through like a million dollars worth of drugs just about every day. >> that's like gold! >> we can make a fortune! >> he was maybe the biggest guy
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in l.a. >> freeway rick was getting his dope from a very big operator. i think we're into something that's bigger than us. something we really can't deal with. >> they had been trafficking on behalf of the united states government. >> she could prove what she was saying. >> [rapping] crack in the system. >> [rapping] this is los
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accusing the united states of the new cold war but the eu is promising more trade sanctions if russia doesn't back off ukraine and russia interference set off a wide ranging conflict doing damage from war saw to berlin and weapons are not limited to rocket planes or launcher and people depend to live from oil to apples. these polish apple farmers are
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on the economic war ranging between russia and the west, sparked by the real war in ukraine. polish apples were a casualty after moscow slammed the door on most agricultural imports from the european union, a tit for tat slapped on russia and has major pain in the farming community and an hour's drive south of war saw, orchards as far as the eye can see grow this, the famous apple, it's delicious and they love these and so do other people. in 2013 they exported over 56% of all apple exports and ended on august first and there is nobody to buy the apples now and that is going to cost apple growers 659 million this year. and apple grower the situation
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is dire. in a typical year 40% of the apples he grows are shipped to russia and without russia jeopardy. >> they are suffering because now our market is panic. >> reporter: that panic is a symbol of bigger fear spreading across a european continent whose economic health was already turning rotton and they dealt europe another blow, no where is the fear greater than germany whose economy europe's biggest is faltering badly, as a result of the crisis in ukraine german exports to russia fell 26% in august compared to a year earlier. and many analysts forecast an out right recession in europe as it grabbels with the fall out from ukraine. on the other side of the equation they are taking a toll on the already stagnating
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economy and lower oil prices put the country and brink of recession, the rubel plunged to lows and the bank of russia said investors would yank $128 billion out of the economy in 2014, more than double the amount they took out the year before. and since sanctions hit, food prices in russia have soared, in some cases by as much as 30%, that has prompted some russians to stock up on groceries in places like poland where prices are cheaper but despite the sanctions president putin's hold on power is not threatened. >> the immediate sanctions is to consolidate support for president putin not only among the population but crucially among the elites and tycoons and access to western capitol has been limited and actually more dependent on the kremlin. >> reporter: more important
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putin holds a huge weapon in russia's economic war with the west, oil and gas. energy exports account for roughly half the country's federal budget and that has been largely spared at least in the short term from western sanctions. the big reason is russia supplies about a quarter of europe's gas, roughly half of that travels through ukraine. during the 1980s moscow built a web of pipelines linking its siberian gas fields to gas thirsty households and industries in europe using ukraine as a transit state. that means europe today is vulnerable if russia turns off the spigot like it did ukraine in the summer. in october they brokered a deal between moscow and kiev that temporarily allowed gas to resume flowing as winter loomed. >> but that doesn't of course solve the issue of what is going on in eastern ukraine and fighting there that could be sabotaged against the pipeline and more problems of that nature
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happening and there are guarantees against that. >> reporter: back on the front lines in poland restaurant owner says another gas disruption could raise energy costs and tighten his budget. his pizza restaurant relies on natural gas for both heating and cooking and poland relies on russia for two thirds of its natural gas imports. >> it's a big problem. a very big problem. in the same moment economy will go down. >> reporter: in a bold attempt to fix that problem, poland is taking the most aggressive action of any european country to free itself of russia eastern guy dominance and poland expects a natural gas or lng terminal to be built by 2015. that will help poland wean off the ten billion cubic meters of gas it imports from russia, half
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that amount of natural gas will come in the new terminal by ship. on a remote polish island on the baltic sea the poles are building this enormous plant to import and process natural gas. construction began three years ago in part inspired by russia's decision to turn off gas supplies to ukraine in 2006 and 2009 which effected supplies to several eu countries. i sat down to discuss it with former polish president and cold war icon. poland had this experience with the gas from russia from gas prom starts to flow a little bit less, do you think that is going to happen this year in poland and other countries? >> translator: just a few more months, years and we will be completely independent of russia, russia will lose out because we and others will not
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buy, now we are not able to do it but we will be in the immediate future. >> reporter: poland deputy prime minister says the economy depends on sources of reliable energy. >> translator: the future belongs to energy and one of the foundations is going to be access to your own source of energy and the cheapest energy, those cheap prices are needed for both residents and business, particularly for industries that require a lot of energy. but that is the problem. energy independence doesn't come cheap. gas deals negotiated with cutter are expected to cost at least a third more than what the poles currently buy from russia. in part because of the distance the gas has to be shipped. and yet the project is moving forward anyway. it's a sign perhaps of just how seriously some in europe treat the prospect of another gas disruption from moscow and it's all part of an economic war that has planted seeds of discontent
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from board rooms in berlin to apple orchards in poland. the ambassador to the united states believes putin will pay a price for his actions but as you saw from the report poland is paying a hefty price now and i sat down to the ambassador do the united states who says poland could use some help from the united states. i have to be honest with you ambassador when we talk about ambassadors this is serious diplomatic conversation and i didn't know how exciting it would be and then i saw a video of you on youtube trying to convince americans to buy these delicious polish apples i had. let's just watch the video. >> this basket should be full, full of fresh, delicious polish apples, unfortunately the american market is closed to polish fresh fruits. and dear american friends please join me in asking the u.s. government to open the doors for our freedom of apples.
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we suffered from these sanctions being one of the biggest exporters to russia exactly of the fresh apples but also vegetables so poland is looking for other markets and we were lucky to find new areas for our exports, but the united states market is one of the most demanding but at the same time the biggest. >> reporter: someone might say as they are watching this why should we buy from you, we have apple orchards in america, you are on the front lines and right there and costs you to take this hard line against russia and why is poland putting itself on the line with respect to russia? poland is a member of europe and nato and there is no real fear is there among poles that russia will try and interfere in poland? >> well our history is that you can never be sure so we took the things in our hands first of all we are in the process of
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modernization of the polish armed forces. it's a project practically going online which is for the next ten years we are purchasing the most contemporary technology, we are not the first target for the russians. but a situation in ukraine puts us in a very worried situation. we might expect some pressure from russian side. actually we don't know what might happen. probably it would be worth the nobel prize if somebody can detect what are the plans of mr. putin so we have to be prepared for a different scenario and even the worst one. we are a member of nato as you said and eu and we have a great alliance with the united states, but we want to be sure that the
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article five of nato treaty would work in the situation that something happens not necessarily in poland but the baltic countries are more exposed than poland but we want to know other members of nato would react properly so there are certain decisions taken during the recent september nato summit. we were quite happy about it. now this is time for implementation of those new initiatives that would put more allied forces in our territory, more exercise, more drilling and also the storage places not to face the situation that if something happens it would require or even more to react. >> reporter: it's important to keep in mind russia perspective in the new cold war and experts refer to it as a coiled spring
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and push too much and it snaps back and feel nato troops interfered and encroached on areas that should be left alone, next on the special edition of "real money," the west is in a test with russia but isolating russia can be a dangerous move the can back fire and you will hear why when we return in just two minutes. >> on techknow cars... the science behind keeping us safe on the road >> oh... >> oh my god... >> the driving force behind these new innovations >> i did not see that one coming >> techknow's team of experts show you how the miracles of science... >> this is my selfie... what can you tell me about my future? >> can effect and surprise us... >> sharks like affection >> techknow... where technology meets humanity... only on al jazeera america
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>> aljazeera america presents a break through television event borderland... >> are you tellin' me it's ok to just open the border, and let em' all run in? >> the teams live through the hardships that forced mira, omar and claudette into the desert. >> running away is not the answer... >> is a chance at a better life worth leaving loved ones behind? >> did omar get a chance to tell you goodbye before he left? >> which side of the fence are you on? >> sometimes immigration is the only alternative people have. borderland only on al jazeera america russia's interference in ukraine is the catalyst for the new cold war but as we have shown you tensions spread to the states and arctic circle and beyond and talked about the risks of the currents situation with the president of the urasia group and thinks talks of this is wrong and dangerous and compared one. >> emerging markets are not with us, china is the world's largest economy and doing a lot
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more business with the russians and it matters. number two the europeans are not with us as much as we would like. earlier today the european foreign minister after all of the escalation we have seen from russia and i do not think putin is a good guy here let's be clear but she actually said that further sanctions against russia are not going to accomplish anything. we should focus instead on reform and support for ukraine for kiev, that is the european foreign minister and america's ally in the region and thirdly the americans don't care that much. at the end of the day we are talking about ukraine. we are not prepared to prop up this government economically. we are certainly not prepared to fight the russians militarily over a non-nato ally and put that together and putin feels like he actually has an avenue to win and escalated. >> i just came back from the eastern european countries where rightly or wrongly they do care and understand you know ukraine is not a nato country and the west is not stepping foot in
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militarily because of that. but people in poland are worried rightly or wrongly. they are concerned about this and do they have reason to be or is that a historical shadow they are worried about, if you turn your eye or back on russia they will invade you? >> they have legitimate reasons and look at that you have large russian communities that live there and imagine the same thing happening there that is happening on the ground in donsk and luhansk and doesn't look like invasion but it's creeping trouble and suddenly you have instability. having said that the hungry and slovakia and chech republican saying we do not want trouble with russia and we are on the back foot and need the gas and trade and you have to stop. nato is not getting stronger as a consequence of the fight, it's more salient but differences with the nato countries are display.
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>> let's talk about the economy and spending the week to talk about and i was in poland where they have a particular kind of apple and 60% gets sold to russia but on august first that stopped and they cannot find a market for their particular apples. on the russian side in comes the substantially lower than they are on the european side so you have these russian enclaves in countries and the russians do much better being europeans but they seem to like this whole mother russia extending its arm of protection around them. >> it's unclear how much they will like it over the long-term, the problem is they out last the ukrainians is the issue here. survey recently taken in russia about level of support of the boycott on food stuff and it's like putin in the 80s and food inflation is hitting and supporting russian industry of course and also hitting russians in the pocketbook but that is all to the same russians that
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benefitted from oil prices going from $14 up to $100 before it sank back to high $70s, these russians overwhelmingly feel that they have done better over putin than they did before. back. you definitely need elites saying he has gone to far and do not like he broke the relationship with merkel in germany but on balance they are with him and unfortunately for all of the economic damage that is being caused for sanctions and initially from the russian aggression in this region, you are just not going to get the this. >> when he was in the russian parliament announcing annexation of crimea he said matter of policy they will extend protection in the spheres of influence. does that mean anything of importance? because people were comparing russia going into crimea with the germans in the 30s extending
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their influence over germans who countries. >> it's hard to imagine americans tolerating the kind of international interference in america's backyard from a country like russia, a country like china which the russians now feel like is being rested upon them in ukraine. ukraine is absolutely the single most important foreign policy interest that the russians have in terms of historical influence and legitimacy in terms of the bases in crimea and in terms of the industrial complex and supply chain in south ukraine and ukraine is a sovereign state and russians have invaded it and it's clear they have to stand up to that and also clear that over the last several months you have seen 80% of the american and european efforts looking at punishing the russians maybe 20% looking to support ukrainian and if you ask me the percentages are exactly backwards and should
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be focused much more on helping kiev and we are fighting them. >> you follow this topic and i'm going to get in trouble for the comparison but if you had a strong and acceptable government in syria and strong in iraq you couldn't have isil doing what it's doing today, i want to draw that example in ukraine with russia. if ukraine were better organized and better run economy you wouldn't have had this or would you have? >> not clear to me but i think you could at least then have a pathway for the rest of ukraine to eventually move towards being democratic and engaged in the european union even over time potentially joining nato. >> ukraine to all the other countries you and i just talked about and poland has not grown as quickly as we would like but compared to a lot of the ex soviet and ex russian influence ukraine. >> ukraine wanted to engage
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with europeans under former ousted president but they made life difficult on him and cyprus and greece and hardly make it easier on a country that was not a part of the eu and ukraine is the ugly stepchild and nobody is interested in it and we say we are supporting them and we have to hash tag diplomacy for kiev and they cannot take that to the bank and the single mistake the u.s. made that is the largest is with all of the visits, the cia director, the various secretaries going over, the european heads of state inviting them to the nato summit the ukraine president could be forgiven for believing he could actually win. he could be forgiven for believing that he could defeat the russian's militarily in his own backyard and never going to happen. that unfortunately is the mistake of the policy we now have to live with. extends far and wide over eastern europe and look how
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large populations in nato countries wield significant power beyond its own borders.
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like it or not the crisis in ukraine is pushing america and the west in a new cold war with russia crimea the economy is sinking because of the collapsing financial system and ukraine banks shut their doors in the region nearly $2 billion in loans have gone delinquient
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and people have been cutoff from accounts and russians who makeup majority blame the west for economic woes and not russia and as it unfolds the west will need to content with the soft power that moscow wields beyond the borders and influence is felt in countries with sizable minorities or historic ties to russia and they include nato members like histonia and bulgaria, familiar sight for many in eastern europe, monuments are everywhere and this is the fifth largest city cemeteries honoring red army soldier have a shared legacy with moscow. in fact, russia has ties to nearly every part of eastern europe. thanks to energy, economics and russian speakers and ethnic people who spread out in the
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region over the centuries. like in ukraine some fear an embolden president putin can use pro-russia groups to further destabilize the region and it's an enclaves like these where putin has an out sized influence. >> translator: my personal opinion is that russia has started to get involved in ukraine only to help. without any intention of repeating what happened in crimea. >> reporter: like many in bulgaria who impose tough sanctions to russia and blames recent tensions in ukraine on nato expansion to eastern europe, moscow's traditional church. >> translator: in my opinion the west won the cold war. and has since been trying to put russia in the corner.
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>> reporter: russia in the 1990s was a weak and many respect humiliated country that was not able to project fore us and not able to defend its interests as it saw them at the time. so when large numbers of former soviet satellites joined nato or joined the eu, the russians viewed this as a slight. >> reporter: and yet despite those memberships russia's roots run deep across eastern europe and thousands of russians went for work during the soviet error russian speakers are a third of the population and account for a quarter of the people in astonia where riots were where they soldier. >> this is a destiny on any sort of arrangement with russia in this region. why is that? because russia is always there. it is self powering people, secret services, businesses,
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media, so if you are trying to deal with russia half, half and buffer zone, russia wins because russia is there, these people used to be part of ussr. >> reporter: in few places are the split loyalties more vivid than bull gary -- bulgaria and some say the eu membership gives russia a voice in brussels. after nearly half a century as the soviet led block bulgaria is the most employable ally. >> it's called the trojan horse of russia. >> reporter: today it's deeply government. >> bulgaria has specific and very strong link with russia and the slovic people and reluctance and rejection of russia never that strong in bulgaria. >> reporter: here in poland
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that kind of ambiguity to moscow is alarming particularly in the wake of the ukraine crisis. many poles who are under the cloak of soviet control see the kremlin's new policy toward its old eastern block as particularly dangerous. those fears are evident here in this shipyard where a polish revolution against communism first gained momentum back in 1980. russia claims it has the right-to-protect ethnic russian communities in neighboring countries and that fear has a lot of eastern europeans worried and they think it may be part of a broader muscle flexing and the fears run particularly high among older poles who know all too well what it's like to live in russia's shadow. >> translator: i'm a little scared the conflict with russia will escalate and i'm keeping my fingers crossed for peace. >> reporter: and rick is a
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mechanic who has worked in this auto body shop for the last 30 years. like many poles he remembers communism and supports even stronger actions against russia despite the economic ties between the two nations. >> translator: i think sanctions are right. they must see what they are doing is wrong. >> reporter: in 1990 these were the borders of the soviet union and its eastern block. two decades later those lines had been redrawn moving nato far closer to russia borders and yet that has not wiped moscow influence from the region. the new europe the former u.s. defense secretary donald rumpsfeld once proclaimed seems as divided as the old one, the only difference now is russia is proven willing to throw its weight around in places it still wields power. up next, the new cold war continues as i go one on one with the man who helped ends soviet communism 25 years ago.
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so why does he still fear russia today? answers are just two minutes away. >> because i was african american i was trying to fit in >> misty copleland's journey wasn't easy >> dancing gave me the opportunity to grow into the person... i don't think i could be without it >> now, this trailblazer is opening the door for others >> i wanna give back to ballet what it's done for me... >> every sunday, join us for exclusive... revealing... and surprising talks with the most interesting people of our time... talk to al jazeera only on al jazeera america
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happening, so they can tell people... >> governments around the world all united to condemn this... >> as you can see, it's still a very much volatile situation... >> the government is prepared to carry out mass array... >> if you want free press in the new democracy let the journalists live. new era and not just europe where it's felt, 2000 miles north of ukraine a new battleground in the frozen north countries like russia and the new found partner china competing with the west to gain foot holds in the arctic, the prize is new shipping lanes and 13% of the world's undiscovered oil, 30% of its natural gas, melting polar ice caps unlocking access to the region and the trick is to be there before the
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ice is gone. three factors matter in real estate and geo politics, location, location, location and for those interested in waterfront property with breath-taking views, plenty of wildlife and the potential for future riches, this island could be a hidden gem. up here in the high arctic it seems there is nothing but land but very little is for sale and saved for one parcel on a mountain across the bay behind me and you cannot see it through the snow and fog and what is interesting is a chinese business man wants to buy that land. there is very little economic value in owning land up here today so one wonders whether it's a greater strategic value. local officials say chinese real estate tycoon recently visited this mountain, that mountain is located here across from long
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and more than 1200 miles north of oslo and halfway between the north pole and norway and one of the richest men says he plans to put in additional bids for land across scandanavia in den mark and sweeden and they did not respond to inquiries of his interest here and they say wong sparked alarm over ambitions on their land. melting arctic ice is unlocking new shipping routes and potentially billions of dollars worth of oil and natural gas. and many here see wong's real estate interest as a backdoor for china to get in the high north. >>any kind of discussion about a potential way of getting your foot into the arctic is interesting for a lot of states and we see that here especially and we have seen it especially in these discussions. >> reporter: reflecting local
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sentiment a newspaper purplished a column saying he was a strong man for the communist party and this is not the only part that is attracting interest. as tensions ramp up between russia and the west and old soviet out post calls barrinsberg is drawing moscow's attention. find out why we jumped in a boat and headed there by way of the barren sea because there are no roads that connect the settlements here. here in this russian coal settlement the hallmarks of a by gone soviet era are everywhere. >>you can see our goal is communism here. of course our goal is not communism today and just a memory for us the spirit of russia. >> reporter: like those old soviet days, this settlement
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still receives supplies and food imports from moscow. that is despite the fact that the amount of coal produced here has declined dramatically over the years. but that doesn't mean this is not valuable. >>the soviet demographic policy puts settlements in russia and soviet union in a marked economy is difficult to sustain but if some settlements in the far north and some bases can acquire a strategic significance so much perspective. >> reporter: with 13% of the world's undiscovered oil and a third of its natural gas located in the arctic many here think russia is holding on to this place just to keep its options open. >>the politics of russia when it comes to high arctic, to being here is very important for them. >> reporter: that means supporting legacy settlements even if only a few people live there. >>if there is a settlement from
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russia perspective can be a flag in the snow then that is absolutely something the kremlin would seek to explore. >> reporter: a hearty crop of 4 400 russians and ukraines are left and tensions remerging even here and they fear fistfights over ukraine can breakout between russians and ukrainians deep inside these mines. >>it's difficult for me because my parents take me there in ukraine. that is why it's very difficult. >> reporter: this new cold war is putting strains on those like constantine a coal minor who came here after learning he could make four times as he earned back in ukraine and so much like china's business tycoon's and russia energy prospects he left home to boost his earnings in a frigid region that is the next battleground in
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a new cold war. it's not only china and russia vying for an edge in the arctic, norway, canada and the united states are all looking to cash in on what could be an economic bonanza in oil, minerals and shipping lanes and when money and energy are involved high tensions often follow and makes what happens in ukraine and the fall out between russia and the west so important. in the hard fsh conditions that exist in the arctic circle cooperation among all nations is sorely needed but in this new cold war at least at this point that seems as remote as the arctic itself. thank you for joining me for this special report, the new cold war, we will continue to monitor the situation and report on what increased tensions between russia and nato mean for the world's economy, businesses and the workers who were caught in the middle, i'm ali velshi, thank you for joining us.
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[ return to kobane. syrians return to their devastated town. you're watching al jazeera, i'm david foster. in the next 30 minutes - a tense moment. afghanistan's president waits for parliament. mexico's government - all 43 student who went missing last september have been killed. plus... >> in