From our studios in new york city, this is charlie rose. Vitaly churkin is here. Russias ambassador to the United Nations. Vladimir putin ratified the treaty to formally annex crimea. The eu and the United States have responded by expanding sanctions on highranking russian officials. President putins spokesperson have said that the sanctions will not go unnoticed. In the ukraine, the government signed an agreement with the European Union forging closer economic ties. It is the same agreement that former ukraine president yanukovych refused to sign triggering protests in november. I am pleased to have Vitaly Churkin back at this table. Tell me how russia sees the annexing of crimea. We see it as a historic fact and day. After 60 years of separation, crimea and russia can finally be reunified. Something that has been the dream and aspiration of the people all the crimea all of those years. You remember crimea has been a part of russia for centuries. Around 60 years ago, arbitrarily by his own decision, he transferred crimea to ukraine. At that point, there was a little grumbling. At least crimea stayed within the same continent. The crimea people tried to cut their political adopting a certain constitution giving them autonomy, but, kiev changed it giving power to crimea. In that situation which developed unexpectedly after the coup which happened in february as no Legal Authority remained in kiev, the situation where crimea felt threatened by those who conducted this violent coup they went ahead and declared their own independence and a referendum where people voted for joining russia. Russia cannot do but take up the challenge and incorporate crimea. What i would like to know is what else does the russian government want . Do you want to take over ukraine, the government in kiev . Intentions beyond this. Most people on this program suggest the crimea is pretty much gone as far as its previous relationship. They seem to accept that. I am not sure the u. S. Government accepts that, but most people do. The question is, what else does president putin want . We have our western counterparts including the United States asking about our views and would produce a paper that is based on the agreement that was signed by the opposition before yanukovych was forced to flee. And was cosigned by foreign ministers. France, germany, and poland. The agreement at any constitutional reform and dialogue. Our idea for the political situation is it should be a process involving all of the regions of thinning the assembly to convene the assembly. Meaning . East, west, all regions. Crimea is out of the picture. All of the regions including eastern and southeastern which are unrested. They should discuss a new constitution. The Russian Federation is a federation. The United States is a federation. Why cant the ukraine be a federation . Assure they can use their rights and the russian language. This is our proposal to ukrainians and western colleagues. The way to stabilize the political situation. Ukraine has a very good knowledgeable with the European Union and the west as well as a Good Relationship with russia. Would it be a good thing . Absolutely. That is what i have been saying. Everybody has been saying. The United States is that we respect and Angela Merkel said we respect the great relation between russia and ukraine and we understand the connection and we respect that. However, ukraine is an independent state. The russians should leave it alone and not try to do what to ukraine what they did to crimea. Leave them alone. [laughter] speaking of them. If we leave them alone, they will collapse because they are working and russia in terms of 20 billion of money every year to support their families which is a sizable part of the gross domestic product. This was entirely our pitch to the ukrainians when the crisis was developing when they will pushing the agreement. When the Ukrainian Government realize the negative consequences, we told down. The Ukrainian Government said it and we support down. Let us have trilateral agreements and with ukraine and russia to see how we can move on economically. They said, no way. We do not want to have those discussions and stead of demanding and enforcing to sign of the Association Agreement. When they say they understand what the role of russia is, they should act. This what did United States think. I do not want to speak up for them. Chancellor merkel has been a good friend to rush and she is very, very angry and said she does not believe that putin am a you know what she said about the phone conversation. He seems irrational which raises one important question that many people sitting at this table have expressed. Vladimir putin famously thought that the splitting of the soviet union was one the worst things. It is beginning of a longtime goal to exert russian influence over what was the soviet union. It is like saying the United States is harboring a desire for establishing a conspiracy theory. Clearly, it is not true. And not true to suggest. We need to exercise and utilize advantages of our region. [indiscernible] we have a russia and kazakhstan and we be other countries in europe will join. And offering membership to ukraine. It would not make up their mind. You do not have any objection to ukraine having a very good and positive relationship with the European Union . Our objective is to have common europea space from. Here is what some people suggest about what happened. When yanukovych was even suggesting there might be a new relation with the eu, it was then the president of russia exercise the muscle he had with respect to energy and other economic influences to say, you cannot do that and you have to violate understanding. Otherwise, we will stop supporting you economically. Use that leverage to force the Ukrainian Government to move away from europe. No. That is not the case. The situation is the Ukrainian Government realized too late what the consequences of this Association Agreement would be. But what would be the consequences . The economy would collapse they were given a 16 billion. They are very good at promising stuff was up giving them 400 million. And some vague promises. Without even committing to a future membership of ukraine in the European Union. Giving promises and telling countries they must obey them politically and economically an order for them to materialize in a the 21st century. When they realize they needed consequences, they were looking to president ial elections. There is no way we are going to survive, our government or country if we accept that agreement. We offer them substantial economic assistance. The things we could do together to take advantage of our situation in order to get out of the crisis. Then, we all would work on a relation with the eu. Are you saying that in fact if the European Union had stepped forward and said sign on the line, we have a relationship and here is 16 billion among the number that was used they might be able to put together now. If they had done that, the crimea so would have been very happy and russia wouldve been very happy . What was said consistently. Vladimir putin said, talking about membership with nato. Who would object . But, but membership in the European Union, a Good Relationship on their decision to make. Told frankly, what the consequences are going to be because now we are in the arrangement of free trade zone with ukraine. Our concern was that if you choose to enter with the consequences of that agreement and that agreement would not survive. That would have a very bad economic consequence and problems for russia. Some cheap stuff from ukraine having been suppressed by European Economic presence. It would disrupt our very economic relationship. What were asking other European Union is a trilateral discussion. Instead, what was sold was indicating that instigating and people from the United States marching along john mccain . John mccain was there also, uninvited, talking to yanukovych and demanding he should go to the European Union. What did you think the protest in the streets were about . They definitely started out of frustration with president yanukovych and his government. Also people were misled by the promise of the European Union. Most of the people interviewed industries at the time were under the opinion or belief that there were arrangement with the European Union. That was not the case. And so, they were misled by the propaganda of the eu. Very quickly, the Peaceful Demonstrations in kiev was hijacked by radicals. They attacked police and tried to take over administrative buildings and toppled the government of by force creating this chaos. The government in kiev . We do not think it is legitimate. It is not legal. The Freedom Party which they branded as radical antisemitic. They are and they do not have control of the situation. It is controlled by the radicals. Several people at this table that you respect. Henry kissinger has a good relation with Vladimir Putin. They talk on the phone and they visit. How would you describe the relationship . I am not in the position. Mutual intellectual respect. Heres what he said about Vladimir Putins response. I think putin undoubtedly interpreted the demonstrations and kiev in kiev when it started when yanukovych was moving and instigated and supported by the west. No doubt he believes that . No question he believes that. That we were behind it . No question. And he probably believes the high point and connection within the olympics was a deliberate attempt to humiliate him. After the success of the olympics . The olympics paralyzed him. He could not participate in the crisis. So, so he probably overreacted. You do not think he overreacted . I think we did what we need to do under those circumstance in the crimea. The other big question is at the beginning of the new cold war between russia and the United States . First of all, we need to recall what the cold war was. It was a period of total competition oh both sides and they were getting very serious to kill each other. This of course is not the case and will not be the case this time. We need to analyze the entire situation. I think that it definitely the United States and some western countries have a view on the crimea but joined vested interest. First of all, make sure the Global Economy is not a destabilized. And secondly with the Work Together to prevent further destabilization. Just avoiding the destabilization is the answer that russians have . Full cooperation with the west and global and ukraine him of course. All of the interest. They are they have like 16 billion debt to us. Without them been prosperous, we cannot expect them to repay. We have interest. The president has been careful to give russia a way out of this. He has said that in fact. An exit strategy if you may. Is it possible we may come to a place where russia will want to extract from this crisis . We are not in a crisis. Ukraine is in a crisis. The United States asked us, tend to ukraine out of the crisis and we told them what the approach should be. Constitution to show reform. The president thinks it is a crisis. And europe thinks is it a crisis. They are ratcheting up sanctions. And they believe they will have an impact. They do not believe the russian economy is in that good of shape. I do not know if there was any sanctions. One russian bank was sanctioned because the name is russia. You are saying to me that sanctions will not have an influence on president putins decisions in the future about this region . It will not. What kind of lives will be United States have . It will only complicate things. Including on ukraine where it is most needed. Here is Henry Kissinger talk about Vladimir Putins personality. A man who looks at personality. And certainly a geopolitical struggle. My relation with putin relationship with putin, i sat next to him when he was deputy mayor of st. Petersburg and i said to him, i said to him, you as an old kgb person, can you tell me why gorbachev rejected and then gave it next to nothing six months later . And he considered that a hugely significant remark. He has written about it two or three times as a very significant remark. His view is that russia because of the incompetence of the leaders and it gave up 300 years of its history and right back to where they started. So he, he wants to restore. How does he carry that agenda . You said he you said you do not believe he wants to take over. He wants a eurasian bloc of states of the former soviet union. What else is available under the fringes of it . And then a chance to play with europe and asia. It would give him russia what do you make of the eurasian idea . Dr. Kissinger is absolutely right. This plan we have been pursuing for a number of years. The target is to create this Euro Asian Economic Union by 2020. And new countries are joining. We think it will be very important to come on the project which will allow our countries to come to an economic level where we can be interacting with the European Union more as it will partners will stop the problem that is at the heart of it. Want to work as equal partners and you do not feel like you are an equal partner. No, we are an equal partner in more than equal with others. It is important not only politically. His interest is not political but economical. If you interact with the ukraine, you are supposed to, they join the Association Agreement. It will be a junior partner and their economy will suffer. There is a national tragedy. We do not want the same thing. We do not want to be subordinated. That is our idea of how we could interact with the European Union. It is that the baltic countries are worried that russia will come after them. Some nato countries. All of them are nato countries. Russia is not going to come after because that will call the treaty in efax. If ukraine have been a member of nato, russia wouldve kept its hands off. This a hypothetical conversation. As far as im concerned, the baltic countries would going to the ocean. [laughter] i like that. We are talking about i care about baltic countries. I have been there a long time ago. They have this psychic psychological thing and they need to overcome that. They depend heavily on russia for economic corporation. Cooperation. Why are all of the troops on the border . Why 20,000 . 20,000 are in crimea. Let me explain. According to the agreement, our black sea fleet, we could have as many as 25,000 troops. Even now, we got 20,000 troops. There were reinforcements after the trouble started from the level in february. Clearly, we are below the level. Several thousand i am sure. Some people are concerned about the situation in western parts of russia on the ukraine. The military asked us to do inspections. You can ask for an inspection. Wouldve allowed them the inspections so they can see for themselves there is no military threat gathering on in eastern borders. Henry kissinger again. He does have relationship with putin and he understands his mind and has a great experience in these kind of matters. He said the ideal outcome would be to look at ukraine as a bridge with east and west rather than involving the countries in the struggle between the two, does it make sense to you . Absolutely. He shouldve spoken more to the europeans and went to brussels. They do not have a clue. They do not have a strategy. Despite our warnings about, they do not know about the consequences will be. They have created this European Union and there they ratified policy. As you know how this policy is being formed. They do not have [indiscernible] in many parts of the world. It is regrettable and we are paying the price. Due to russians actions. It includes Angela Merkel. As i do not want to name names. She is not running the European Union. The way of formulating decisions, so i do not want to do fingerpointing. What they did in ukraine was shortsighted and provocative on unnecessary and unprofessional. Is the president disappointed by her reaction to what he has done . I cannot talk for the president. You think will find a diplomatic solution along the lines in ukraine can be stabilized and there can be a bridge between east and west and have relationship with eu and an understanding about the relationship with russia and everything will be fine . That is what we are hoping for and working for. Not some Messianic Mission by Vladimir Putin to restore what considers the glory over the soviet union . We are much more pragmatic. Russia is on the rise and the fact the crimea has been incorporated into russia reflecting the historical will of the people is an element of the spiritual of russia along with olympics which were effective. We are on a verizon. We do not need foreign adventures. We are on your rise. What does it mean we say you are on the rise . We are a stable country. A country that has big plans for the future. What are they . I described in some detail. Building a stronger russia. That is the point, too. The United States is saying the following. Russia needs a Strong Economy to have the role it wants in the world. If it continues this kind of contact conduct as we saw in crimea, what will happen is the image will be as a bully and will ratchet up the sanctions because they learned how to do sanctions if there is cooperation between the United States and europe. And if this could be something that would do great are met detriment to your description of the rise of russia. Instead of for making all of the threats, maybe the United States should and they can do something about their national debt. It is a bubble. You think your economy is as strong . Our economy is different. We do not have national debt. Our economy is very solid. We are probably one of the strongest economies in europe. The European Union have 25 take away your energy and where are you . Burdens they can not successfully carry on. Stronger, weaker this is a reality. Can a pragmatic minded force you to say we have to be careful here and make sure no misunderstandings because it we all need to be careful. It is the world. It is growing increasingly chaotic. I talked to my colleagues in the United Nations from arab and african countries. They are quite scared about what they see. After this the democratic bombing campaign, does not exist an integral state anymore. Theres complete chaos in many countries in africa and southern sudan is overflowing with blood. Iraq is disintegrated. Syria is on the verge. They are very concerned. The only way to deal with those problems is having concerted action from key members of the International Community and russia is one of those members. If we go into if we do that and you will do that, well all be harmed. Russia might be in a better position than others to live through those difficult times. But i hope they will not come. I think the world would be pleased to hear you say that. Some people worry if in fact theres a ratcheting up of tensions between United States and russia tom a you will see less cooperation russia, you will see less cooperation on syria and iran and other parts of the world. If it took place, it might go to make the possibility of solving those or reducing the danger of those conflicts. You are absolutely. It is not our choice. Is it at risk . I think currently, we are not at risk. Currently, there is no objective reason for a major falling out between russia and the United States or the European Union. However, if they start acting out all of those you are describing, some things will become inevitable. International relations will become much more less governable than they are with the Current Situation which has been described. Thank you. My pleasure. Larry page cofounded google with sergey brin in 1998. They had a mission to organize the worlds information and make it universally accessible and useful. Larry page became ceo in 2011. Google is doing that and much more. That Android System is the most popular mobile platform. Google x is pursuing projects from self driving cars to bring the internet to the entire world. They went public in 2004. Its market cap is over 300 billion. I spoke to larry page as the tech conference on wednesday. Larry sent me an email that basically said we have to make sure that we do not seem like we are a couple of middleaged am a boring middleaged, boring men. I said i am flattered by that. [laughter] because i am a bit older. You know, he has a bit more net worth than i do. Thank you. We have a conversation about internet and a conversation about the google and about search and privacy and also about your philosophy in the sense of how you connected the dots and have the journey that began some time ago. Such interesting prospects. We want to talk about the future. Google first. I feel like im in a special class of people that cannot give a ted talk by themselves. Edward snowden and it is interesting. That is right. We will take pride in it that, once we wont we . Where is google and where is he going . Something we think about a lot. Our mission we defined is to organize worlds information and make it universally accessible and useful. People say, is that what you guys are still doing . And i think about that myself and i am not sure. Actually, when i think about search, it is such a deeper thing for all of us. To understand what you want in the worlds information. We are still very much in their early stages of that which is totally crazy. Ive been at it for 15 years already. It is not at all done. When it is done, how will it be . I guess thinking about where we are going, why is it not done . Computing is a mess. The computer does not know where you are and what you are doing and what you know. A lot of what we have tried to do recently is making the devices work and people understand your context, google now knows where you are and what you might need. And just getting all of that to work. Recently we did chrome we are working on televisions. Announced android wear for wearables. Working in understanding you and understanding the information. We have not really done that yet. It is still very, very quirky. When you look at what google is doing, where does the mind set . A company we just acquired recently from the u. K. , the way we got there which was looking at search and really understanding and trying to understand everything and making the computers not clunky and understanding you. Like voice was really important. Speech recognition. State of the art, it is not very good. When you look at all of the boxing and deeper mind, a part of where we are going is artificial intelligence. Where are we when you look at that . I think for me, one of the most exciting things i have seen in a long time. I started this company as a neuroscience and computer science. Studying the brain. Having seen a lot of exciting work going on in a neuroscience in terms of understanding what it takes to make somebody smart. Something smart and do interesting things. Where is the level of it now and how fast are we moving . This is state of the art right now. Understanding you to youtube and improving speech recognition and improving things incrementally. For me, this example is exciting. It is one program and i can do a lot of different things. We have the image of the cat. This is how machines look at what they came up with. Can you see the cat . Designed by machines, seen by machines. This is learned from just watching youtube. No notion of the cat. The concept of the cat is something important as you would understand the machines can understand. Started with search, understanding peoples contacts and information. Showing quickly on that. [applause] the thing about the video is [applause] the thing about the video is we found the gentleman. When i talk to people about you, people say larry wants to change the world and he believes technology can show the way. That means access to the internet has to do with languages and also means how people can get access and do things that will affect their communities. This is an example. That is right. For me, even focusing on access more. Talking about the future. We recently used balloons. It sounds totally crazy. I can show the video. Two out of three people in the world would not have Internet Access now. We think this will really help people. It is a balloon . Yeah. Why does it give you access to the internet . You had find out a way to make balloons connect. They do not have to be tethered. Before we started working, it is how to get access point up high cheaply. Normally you do satellites and it takes a long time to watch it down. How do you watch a balloon and get it up . As far as the internet, i did a search. 30, 40 years ago, a balloon going around the earth several times. I thought why cant we do that today . Are you at the mercy of the wind . As it turns out, we did weather simulations which had not been done before. If you control the altitude of the balloons, which you do by pumping air, you can control roughly where they are. We think we can build a worldwide mesh of balloons that can cover the whole planet. Transportation. Where you have been a nerd for a while. And automated cars and bicycles. Let me talk about the subject with edward snowden. It is security and privacy. You have to have been thinking about that. Absolutely and i saw the picture of sergey brin with edward. Privacy and security are very important things. We think about it in terms of both things. And i think you cannot cap privacy without security. Let me talk about security first. You asked about snowden and all of that. I think, for me, it is disappointing that the government secretly did all of this stuff it did not tell us. I do not think we can have a democracy if we are having to protect our users from the government from stuff we never had a conversation about. We do not have to know what the factor or protecting us from a but we do need to know what the parameters of it are and what kind of surveillance the government is going to do and how and why. We have not had that conversation. The government has done a tremendous disservice. There is a privacy side of it. The privacy side, the world is changing. It knows where you are. [indiscernible] theres so much more information about you. And that is an important thing and it makes sense for asking difficult questions. We spent a lot of time thinking about this and what the issues are. I am a little bit and i think the main thing we need to do is provide people with choice and show them what data is being collected and Search History and location data. Incognito mode. Chrome, doing that in more ways a given people more choices and awareness of what is going on. It is very easy. What i am worried about is [indiscernible] and i lost my voice. I have not gotten it back. Hopefully, talking to you i will get it back. If i could do anything, i would do that. Whatever you need to do. I look at the public and all of this information we will survey on medical conditions of people with similar issues. I look at medical records as say, wouldnt it be amazing if everybodys medical records were available anonymously to Research Doctors . When somebody accesses your medical records, they concede, they could see, you could see which doctors had access and why and maybe learn. I think we could save a hundred million lives this year. [applause] i am just very worried that the same thing we are doing with medical records, we are not really thinking about the tremendous good that could come from people sharing information with the right people in the right ways. Is a necessary condition of people have to have confidence that their information will not be abused. With my voice problem, i was scared to share it. Sergey encourage me. We have gotten thousands of people with similar conditions which there is no data on. It is a really good thing. Talk about the future. What is it with you and transportation . Ive made, i mean, when i was in michigan in college and i had to get on the bus and it was cold. I had to research for how much it cost, an became obsessed with transportation. That begin the idea of an automated car . I learned about people working on automated cars and i became fascinated with that. It takes a lot to get the project going. I am super excited about the possibilities and improving the world. There are 20 Million People or more injured per year. The leading cause of death for people under 34 in the u. S. You are talking about saving lives . Yeah and making life a better. Los angeles is parking lots and roads, half in the area. In most cities are not far behind. It is crazy. I think we can be very very soon. Well over 100,000 miles now totally automated. I think, i am super excited. It is not only you do not know how many cars that you also have the idea for bicycles. At google we got the idea we should provide free bikes. Most of the trips, bikes are going everywhere. They wear out. You want to put them above the streets . How do we get people to use bikes more . We have a video. Lets show the video. I got excited about this. [laughter] it looks totally crazy. I was thinking about our campus. And getting more bike usage. I was thinking about how separating it from the traffic . It gets your imagination going. Let me close with this. Get me the sense of the philosophy of your own mind. You do not simply want to go in some a small, measurable arena progress. Yeah, i seeing many of the things we talked about are really, the economic concept. Which means we are doing something that would not happen unless you are actually doing it. And the more you can do things like that, the bigger impact you have. That is about doing things that people may not think are possible. The more i learn about technology, the more i realize i do not. That is because the technological horizon, the thing you can see to do next. The more you learn about technology, the more you learn what is possible. You learned the balloons are possible. What is interesting about you for me is lots of people are thinking about the future. They are going and looking at it, and back. We never see the implementation. Somebody you knew and read about, tesla the principal of that for you is what . Intervention is not enough of. If you invent something, wonderful. Electrical power struggle to get out. And other people, it took a long time. And we can actually combine both things. Innovation and venture focused. A company that can really commercialize things and get them to people in a way that is positive and to get people hope. I am amazed with the balloon project, how exciting people were about that. It gave them hope. 2 3 of the world does not have internet right now. The second thing about corporations. You believe corporations are an agent of change if they are run well. Most people think companies are basically evil. They get a bad rap. That is somewhat correct. Copies are doing the same incremental things they did it years ago. 20 years ago or 50 years ago. It is not really what we need. Especially in technology, we need revolutionary change. You once said i think i got this about right, you might consider instead of giving your money instead of leaving it to a cause giving it to elon musk because you have confidence he would change the future. If you want to go to mars, backup humanity. As a company and a philanthropic will. We have a lot of employees at google who become a pretty wealthy. People make a lot of money. A lot of people in the room are pretty wealthy. You are wealthy because you want to change the world and make a it better. Batter. Why is it in the company you work for matching it, your money as well . We do not have a concept of that. That is not how we think of companies and it is sad because companies promote most of our efforts. Where peoples time and a lot of money is. We need to help out more. I ask this question when i close out conversations. What quality of mind is it that has served you best, people like Rupert Murdoch has a curiosity. Bill gates, Warren Buffett have said what quality of mind as i leave the audience has enabled you to think about the future and at the same time, change the present . The most important thing, i looked at a lot of companies. Why they do not succeed over time is what do they fundamentally do wrong . What do they all do wrong . Usually not looking to the future. And i think for me, i try to focus on that and say, what is that future really going to be and how do we create it . And how do cause our organization to really focus on that and drive that . And so, curiosity, looking at things people may not look at and working on things no one else is working on. That is where the additionality, where it is. And being willing to do that and take that risk. Looking at android, i felt guilty. When it was started, it was a little start up we bought. Not really what we were working on. I felt guilty about spending time on that. How stupid. It is great to see you here and here from you and a pleasure. Thank you, larry. [applause] live from san francisco, welcome to bloomberg west, where we cover innovation, technology, and the future of business. The online retailer revealing its plans to go public. The company filed confidentially. The prospectus is public. Box indicating it hopes to raise 250 million. We did learn sales doubled in the last year to 124 million