Transporting oil by pipeline. With the keystone xl controversy coming to a head. Ill tell you why canada is so concerned about the risk of disastrous spills, i am ali velshi and this is real money. Cold war, global tensions with russia from the arctic ocean to the south pacific. Beginning tonight i will take you on a journey that illustrates how the wests confrontation with our a is spreading far beyond ukraine, just in the last few days, western leaders ganged up on russian president Vladimir Putin during a summit of the group of 20 nations, president obama and David Cameron both warns of a, quote, frozen conflict created by russia in Eastern Ukraine. Canadas Prime MinisterStephen Harper was even blunter telling putin, quote, you need to get out of the ukraine. European Union Foreign ministers met today in brussels to debate new sanctions against russia. But talk of cutting europes energy trade with russia, which supplies one quarter of the even e. U. s natural gas needs still not on the table. Despite russias expulsions of german and polish diplomats from moscow in response to similar moves by those countries against russian diplomats. So tonight we start our weeklong series called the new cold war. Ill take tout frontlines of nato estates like states like pole around, romania, bull bulgaria and then north to the Arctic Circle where they are competing for the Natural Resource with his a brandnew surgery. We begin that report right now with tonights report. Its 10 00 a. M. On an autumn morning in trans vein ya. More than a thousand romanian soldiers are engaged in war games under the guidance of hundreds of u. S. Marines. Its a routine nato exercise. Demonstrations of force like this have take own a new urgency for the west. Here, besides the ca carpathian mountains in romania, these soldiers are training for battle. Respond. Just a sevenhour drive from ukraine, where russianbacked separatists set off the worst confrontation between moscow and the west since the end of the cold war. Romanians and other Eastern Europeans who remember russias past aggressions are worried about the wests ability and willingness to stop an emboldened russian president Vladimir Putin. A new cold war is a reality. Now we live in a knew cold war. But its a dang fore real war. Not everyone shares his fears that moscow and the west are bounds for armed conflict. Yet an escalating military presence on both sides has left little room for error. In october nato scrambled dozens of f16s when russia launched an unusually large number of combat aircraft 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 baltic sea. That intercept was captured here on neverbeforeseen video recently declassified by the norwegian military. It shows russias newest fighter jet, the su34, which can travel more than 2500 miles carrying a payload of eighttons of precision guided weapons. Events like this happen more than 100 times in 2014. Three times more than in 2013. Essentially what it is is the cat and mouse game played during the original cold war where each side probes the defenses of other the in order to see how they will react. That game is putting more pressure on nato outposts like this air base in buddha, where norwegian forces until recently cooperated with their russian neighbors. Despite good relation with his russia, nato uses its join command certainty and its f16s to be natos eyes and ears in the sky when it comes to russia. Norway runs that operation from its military head quarters. Which it recently moved 600 miles north to buddha. 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, norwegian officers track incoming russian bombers on giant monitors. An image that conjures up memories of 1950s cold war suhr surveillance and lately that era has come roaring back to life. Brink man ship between nato and russia has always existed. But the crisis in ukraine may have fundamentally redefined moscows relations with the west. I think without question the ukrainian crisis has pushed the russiawest relationship over the cliff and in to something that is qualitatively different than what we had for most of the cold war period. Nay speech putin gave to russias parliament announcing the annexation of crimea, he outlined a new vision for the kremlin. Moscow would actively protect it considers its sphere of influence. There was one part in which he warned russias western colleagues if you compress a spring to its limbing its, at some point it will spring back hard. And thats the new Foreign Policy of russia. Its springing back against this perceived slights and encroachments by the west. In november former soviet leader Mikhail Gorbachov weighed in saying the expanse. Of nato and war in the middle east have all contributed to the collapse of trust between russia and the west. Translator the world is on the brink of a any cold war, some are even saying that it has already begun. The stakes of this new cold war are about more than just territory and influence. They are also about money. Here are the top of the world the battle is being fought over energy. The arctic is home to 13 of the worlds undiscovered oil and a third of eights natura of its n. Eight nations lay claim to this vast melting landscape, including russia, canada and the United States, they alongside thine khrao eupb or all pursuing huge reserves of oil, gas and, coal. Russias resurgence happen abouts fueled by hydro ca are bon that his came to the subarctic, if they are to stay powerful they need more to come out of the arctic. In thousand seven russia formally staked its claim to billions of dollars worth of arctic oil and gas deposits. Two mini submarines plants aid titanium russian flag on the ocean as floor under the north pole. Canada and u. S. Scoffed comparing it to a 15th century land grab. But the move under scores the growing importance of the region. To get a firsthand look i headed north. Way north, to the northern most town in the world on an island in the high arctic. Many nations are eyeing this once sleepy coal mining settlement as a strategic base in this arctic frontier, we are much closer to the north pole than oslo and this is for polar bears, here they generate electricity by burning coal and they were longing for a place to put the co2 emission that his come from burning coal, trying to find a reservoir to put it underground and came upon natural gas. Find like these have wet the appetites of Energy Prospect terse but its not the only battle in the north. Its 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 a lot of money, for example, a cargo ship traveling between western europe and asia typically sails through the sue he is canal, doing it through the arctic shortens that trip by 40 . The number of russia ships has sored what need now are ports and lines of communication, its a big reason why moscow unveiled an ambitious plan to build 13 bases and radar stations in former soviet outposts across the arctic. It would not only be lucrative for russia economically, but tremendously beneficial for russia strategically in the sense that russia would control a key shipping artery. Is it presents an obvious Communications Hub for russia and other polar nations that are increasingly interested in the high north. Thats because of the placement that we have with the activity in the polar sea and placed in the center of that. It has the look and feel of an alpine ski resort yes its a key listening post and Research Center for activities in the high north where 59 of the ice has melted way since 1979. Melting ice in the arctic, its an ironic contrast to the new freeze in relations between russia and the west. A freeze that is steadily putting old cold warren my on his a path toward a new round of battles, whose end game is less about ideologist and more about economic control and financial supremacy. In just two minutes well head overseas and dig deeper in to the cold war style freeze in Relations Just as a ceasefire in Eastern Ukraine is on the verge of total collapse. Plus ill look at the cost of america trying to isolate Vladimir Putins russia. You are watching the new cold war, a real money special report. Tell me whats your minds by tweet me at ali velshi or hit me up at facebook. Com alivelshi. An all new airplane in a once in a generation achievement of human ingenuity. Three years late. Fleet grounding. Fires on the airplane. Theyre short changing the engineering process. From engineering to the factory floor. Al jazeera investigates broken dreams the boing 787 only on al jazera america start with one issue ad guests on all sides of the debate. And a host willing to ask the tough questions and youll get. The inside story ray suarez hosts inside story weekdays at 5pm et 2pm pt only on Al Jazeera America welcome back to a special edition of real money. The new cold war. I want to take a deeper look at the ongoing conflict in ukraine. The ceasefire greed to in september appears to be on the individual overge of collapse. Large explosions and artillery fired rocked the airport in Eastern Ukraine today. 10 people were killed and 17 others wounded in this latest fighting. The situation has deteriorated rapidly since the rebels held elections on november 2nd in areas that they control. And nato is accusing russia of sending new weapons and troops in to Eastern Ukraine to fight alongside those rebels. Phil joins us from london via skype with the latest. Phil, the report suggestions the Ukrainian Government may be preparing to launch a new offensive against the rebelheld areas which, by the way, russia now accepts as being rebelheld areas, what does this mean and what are you hearing . What we are hearing is on the ground there is a major buildup on ale sides, the Ukrainian Government sending troops to the east. And we are hearing about these armored columns what nato claims to be russia troops going in to the area. So while there has been no major breach of that east fire agreement, the socalled minsk agreement, there are daily events, people are getting killed. Its it does look as though both sides, both of the major players, are preparing for more fighting and are using this ceasefire more as a time to reinforce their positions, than to actually step bay from the front lines ali. Lets talk about where the russians stands on this. They recognize these elections in which the rebels in the russian in the area that they controlled, held elects and won. Russia has not gone so far as to recognize some sort of a new country or New Territory or suggest that its going to an exthis area. But this is russias next play, i would assume. And thats why ukraine needs to continue to keep force on these rebels. Well, yeah, certainly thats what the government in kiev says, ali. But, you know, its also very interesting to keep an eye on the last conflict that russia was involved in out in georgia in 2008. Almost eerily similar to this situation in ukraine, there are two separatist areas in georgia that were more or less taken over by, lets say prorussian forces. Now, they are now from 2008 until now slowly being integrated in to the russian federation, whether its some sort of free trade zone not actually within russias borders its yet to be seen, its interesting to keep an eye on that in georgia to get a clear idea what may be the game plan in ukraine. Any sense of the pressure that was being put on Vladimir Putin put on him by western leaders at the g20 summit. We saw particularly harsh words from the canadian minister think but generally the west putting more pressure putin. Absolutely. That g20 summit in australia was interesting, particularly given the fact that putin was given a cold shoulder, his response its interesting to keep an eye on that. And you know, ali, we do look, of course, at the markets within russia, the ruble is in very bad shape. You know, these sanctions are having an effect. But while the inner circle of Vladimir Putin and the kremlin have kind of circled the wagons and certainly there is a sense of patriotism within russia, there are those who are feeling the bite and they are on the periphery of a lot of russian mass media some discussion of some unhappiness at the way the kremlin is managing the situation. Certainly not a popular up rising but grumblings are being heard and its no surprise, again, this is taking an effect on the economy in russia. We will spend the entire week talking about that, phil. Thank you so much for joining us phil from balloon don. Petro poroshenko has cut government funding to rebelheld areas in the east of the country. State companies and organizations there need to close within a week. While Banking Services are also being affected and as Harry Fawcett reports from donetsk, locals are worried that they their already difficult lives are about for get much more. Reporter in downtown donetsk they gather at the one cash points in the area thats been reliable in recent days. But a day after the ukrainian president s decree that among other things promised an end to Banking Services in the breakaway east there is no money to be had. Translator the banks are empty on a sunday. It doesnt give out money so there is none. Reporter elena works for the staterun water company. She hasnt been paid for three months. And at any time sure what to expect now that the buck stops officially with the selfdeclared government of donetsk. I hope theyll help. I would like them to. They are our authorities and this is our city. Yes, i think so. They have to. They promised. But really, i dont know. Reporter at say suburban supermarket part of a chain base Million Dollars western ukraine, bank workers took away the credit card terminals on thursday, for now business goes on, but the bosses dont know what to expect in the coming days. Businesses across eastern a crane the manager here have two key concerns whether they will continue to get access to goods from the west of the country, and whether their customers will find it evermore difficult to get access to cash to pay for them. One question now the extent to which rauch will step in. More russian aid has been arriving through sunday much of this convoy made up of parts and materials to repair the electricity infrastructure as winter sets in. Translator we hope russia wont for gert us. They are our brothers, aid is critical but we also need medical surprise and field the situation is unchanged the country is at war and the economy is basically destroyed. Reporter bull also renewing his appeal for russian help to take more territory. Ukraine and nato say moscow has been sending troops as well assayed across the board never recent days, the theory is that two months of shaky ceasefire could soon be replaced by a return to open, widespread conflict. Harry fawcett al jazerra, don everything. End next the new cold war, is west is in a test of wills with russia, but isolating russia can be a dangerous move that could backfire. Ill explain why when we return in just two minutes. We have been talking about the new cold war between russia and the west. Russias interference in ukraine has been the catalyst for this new conflict but as we have shown you the tensions have spread to nato frontline states. The Arctic Circle and beyond. For more now lets go to ian bremer the president of our asia group. He thinks that talk in the west dangerous. This is interesting , ian because so much of the talk that we have seen at the g20 is further isolations, more sanctions, straight out talk by the Prime Minister of canada, you need to get out of ukraine. Are you stucking a more con struck stiffen gauge. First. Of all thats what you heard in americas another eyes you didnt hear this that from the chineses, he showed immaterial early at the g20 and shined a raft of deals with china. As are all the merging market. The International Community is not support this is. None of the merging markets are. Draw me a picture about how its different from the old cold war. Was it such that russia has enough allies in merging markets and along asia that the old form of isolation that the west practiced during the cold war wont work . Its different in three ways. First, its different because the emerging markets arent with us, china is the emerging largest economy pitch they are doing dealings with russia that really matter. The europeans arent with us as much as we would like. Earlier today the european foreign minister after all the escalation we have seen from russia. I dont think putin is a good guy, lets be clear, he said this further sanctions wont accomplish anything. We should focus instead on reform and support for ukraine, for kiefer. Thats the european foreign minister. Americas ally in the region. And then thirdly, the americans just dont care that much. Mine, at the end of the day, we are talking about ukraine. We are not prepared to prop up this government economically. We are not prepared to fight the Russian Military over a nonnato ally. If you put those three things together and putin feels like he actually as an avenue to win so hes been escalated. So i just came back from these Eastern European country where rightly or wrongly they care. They understand ukraine is note a nato country and the west is not stepping foot in military because that have think but people in pole around are worried rightly or wrongly. The latvians, estonians, they are concerned about it. Do they have reason to be or is that just a house tour cal shadow you worry ab