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Relations with IMF derail; Retail rents rebound 23%; Turkey starts Black Sea canal; Thailand gets Ukraine tanks; Kyiv to get digital radio

16 Jan 2018 3:53 PM | Laziz Rasulov (Administrator)

President Poroshenko’s office rejects IMF criticism of his draft law to create an anti-corruption court, saying Monday evening: “All discussions about certain norms must be held within the legal framework in the Ukrainian parliament." Earlier in the day, news outlets published a letter to Ihor Rainin, head of the Poroshenko administration, from Ron van Rooden, IMF mission chief for Ukraine. “We have serious concerns about the draft law,” van Rooden wrote June 11, referring to the draft law. “Several provisions are not consistent with the authorities’ commitments under Ukraine’s IMF-supported program.” Analyst Timothy Ash writes: “[Poroshenko] obviously does not think Ukraine needs cheap IMF financing. It always amazed me to read analysis suggesting IMF disbursements in Q1 or earlier. As is, Ukraine will be lucky to get any IMF disbursements this side of elections next year."

The hryvnia weakened by 1.6% over the first two weeks of January to UAH 28.5 to the dollar. This comes after the national currency only weakened by 3.1% during all of 2017, it’s most stable performance in four years. To prevent exchange rate spikes, the National Bank of Ukraine has injected $53.5 million into the banking system this month. Concorde Capital’s Evgeniya Akhtyrko writes: “By the end of 2018, we expect the hryvnia will touch UAH 29 to the dollar on the back of further current account deficit widening.”

Rents in upscale Kyiv shopping centers rebounded last year by 23%, to $960 per square meters per year, the highest jump in the history of the local index, reports Jones Lang LaSalle, the real estate consultancy. At the same time, vacancies dropped by 6.5 percentage points, “a record drop in the annual vacancy rate,” JLL reports. Pressing the market, real wages in Kyiv increased last year by 11.3% and, for the first time in recent memory no new shopping centers opened. Due to construction delays, five new shopping centers are to open in 2018, adding 114,000 square meters of new retail space. Also, this year, Kyiv is to see several new international brand stores: De Facto, Decathlon, FLO, H & M, IKEA, Koton, and Zara Home.

The average sale price for a Kyiv apartment fell 6% last year, to $977/square meter, consulting company SV Development tells UNIAN. While prices fell across the city, the lowest drop was in Podil, where prices fell by 4.4% to $905/square meter.

Nuclear power production increased by 5.7% in 2017, Energoatom reports. About half of Ukraine’s power comes from its four nuclear power plants, a ratio topped in Europe only by France. Last year, the nation’s 15 nuclear reactors produced 85 billion kWh.

Despite foreign press reports that imply that Ukraine has a high crime rate, the number of murders is one third the level of 20 years ago, Viacheslav Abroskin, deputy chief of Ukraine's National Police writes on Facebook. In 1997, 4,529 people were murdered in Ukraine, three times as many as the 1,551 murders recorded in 2017. He wrote: "In 2017, culprits were identified in 1,387 out of 1,551 murder cases, while 466 cases were solved that had been dragging over the years." Last November, The Wall Street Journal started a feature story: “Bodies are piling up in Kiev...” Last week, The New York Times published a lengthy story on the murder of Iryna Nozdrovska, the human rights lawyer