The Science Technology Center in Ukraine (STCU) is a multilateral nonproliferation and scientific cooperation program that operates under the terms of the international agreement signed by Canada, Sweden, Ukraine and the United States. The STCU provides former weapon scientists and engineers in Ukraine the opportunities to redirect their talents to peaceful activities and contributes thereby through its projects and activities to the solution of national or international technical problems. The STCU supports basic and applied research in the fields of environmental protection, energy production, nuclear safety, development of the experimental technologies for production of a new materials, sensors, devices, etc. The STCU welcomes integration of scientists of Ukraine into the international scientific community through the international contacts and development of international scientific cooperation. The STCU staff is headed by Executive Director Leo Owsiacki of Canada, Senior Deputy Director Boris Atamanenko of Ukraine, Deputy Directors Frantisek Janouch of Sweden, and Arthur DuCharme of the USA.

The funding of Ukrainian R&D project by organizations that are not signatories to the STCU intergovernmental Agreement has recently been reviewed by ourselves and by our Board. The STCU member countries are fully supportive of activities (foreseen and allowed by our Agreement and Statute) that would have third parties (industrial and others) fund R&D projects with Ukrainian organizations and scientists through the STCU. This type of activity is considered to be a positive step towards integrating Ukraine into the international scientific and industrial community.

The Board of the STCU approved a Partnering Agreement for such third-party R&D involvements. The procedure is quite simple but requires one (in certain cases more than one) STCU member countries to declare that a particular third-party organization be given the status of STCU Partner.

As you are aware, dealing in such R&D matters through the auspices of the STCU, brings with it a series of significant benefits, as specified in our Agreement, in addition to our fully developed system of technical monitoring and payment of R&D grants directly to Ukrainian scientists. Therefore, it is most important that any activities involving the STCU and third-parties be restricted to the support of R&D and possibly the support of production technologies by Ukrainian scientists and organizations. In no case are we permitted to support activities of a purely manufacturing or full-scale production nature. It is also understood that such activities should in no way be of a nature that could be considered a security threat to the Ukrainian authorities (5-pages form).

Any third-party involvement with the STCU is, understandably, subject to a nominal administration fee - presently tentatively set at 5% of the total project funding involved. In return, the STCU would be ready to provide, if requested, services similar to those it provides for its own projects.

We would also like to underline that we maintain all normally accepted procedures for ensuring confidentiality of all aspects of such relationships and intellectual property.

Center is interested and ready to cooperate with your organization in any R&D projects in Ukraine that your organization is interested in funding.

Dr. Arthur DuCharme, deputy director from the USA, to be available to you regarding general implementation of these matters, in particular of those dealing with scientific aspects. In addition, Mr. William (Bill) Luke, our Chief Financial Officer will be pleased to provide you details about the exact process of transfer of funds as established by the STCU.