EAVEX Weekly

December 11, 2017

Ukrainian stocks ended lower last week amid a rise in political tension in the country in the form of street demonstrations by aggressive anti-government radicals. Both the IMF and the World Bank expressed concerns about recent presidential attacks on Ukraine’s two main independent anti-corruption institutions: the National Anti-Corruption Bureau (NABU) and the Special Anti-Corruption Prosecutor’s Office (SAP), as this threatens their ability to fight corruption and recover stolen assets. Another disappointing piece of news for the country’s reform agenda was the extension of the ban on sales of agricultural land until the end of 2018. The launch of an agricultural land market is a key IMF criteria for resuming loan disbursements. The decision looks like a timid cave-in to populists and corporate interests as President Poroshenko looks to find the path of least resistance heading into the presidential election scheduled for April 2019.