MVVM Modelview to View
As far as i understand ViewModel communicates with View via databinding. But how can one create in ViewModel UIElements for View.
The ViewModel should not create any UIElements directly because the ViewModel should not depend on the View. The ViewModel provides data that the View (i.e. the UIElements) can bind against.
If your question is geared toward how to bootstrap a View, there are two approaches: View-first and ViewModel-first. In the former you create the View first and then create and bind against the ViewModel. In the latter you make the ViewModel create the View (through interfaces). Read more about it here.
If your question is geared toward composing the view of UIElements, this is done through DataBinding and the use of DataTemplates and ControlTemplates.