01. The STCU is fully established and operational. This was achieved in the relatively short period between 01 April 1995, the official date of arrival of the Canadian Executive Director, and Autumn 1995.

02. All financial support pledged by all parties has been provided. In particular, all first and second year administrative operating funds - from all Parties - have been received.

03. The STCU took over its own new, fully furnished and equipped, independent office building at the end of November 1995.

04. Over $400,000 have been spent on furnishings, equipment and building modernization. A third floor is being added to our building with an additional $100,000 for furnishings and equipment allocated.

05. At present, STCU staff number a total of 36+; of these there are:

• 2 Canadian (Executive Director and General Services Officer)
• 1 Ukrainian (Senior Dep. Exec. Dir.)
• 2 American (Dep. Exec. Dir. and Chief Financial Officer)
• 1 Swedish (Deputy Executive Director)
• 30+ Ukrainian, (scientists, financial, administrators, and support)
• The STCU also receives assistance from US and Canadian experts.

06. 346 R&D Projects of very high caliber have been submitted to the STCU by Ukrainian scientists during the First Call for Proposals for possible funding by the donor countries. Projects are interesting in that they are of a very 'applied' nature, highly suitable for involvement by 'Western' research and industrial partners.

07. 238 R&D Projects have successfully passed Ukrainian State Security and 164 have been forwarded to the donor countries for scientific evaluation and review for funding. Another 74 projects are being reviewed before sending for donor review.

08. The first Board of Directors' Meeting was held on 14-15 December 1995 in Kyiv. In addition to formally approve a raft of official STCU documents, the Board considered the first set of 30 projects, approving 12 for a total of about $1,600,000. (a 40% success rate!!). 6 projects were asked to be 'revised and resubmitted'. In addition, a special 'Canadian Collaboration Grant Project' for $100,000 was approved funding work visits by Ukrainian project scientists to Canada on projects supported by Canada.

09. Board Meeting #2 held in Kyiv on 10-11 May 96 reviewed 62 projects and approved 37 (a 60% success rate) for an amount of over $4,400,000. Western scientific experts commented that these projects were among the highest quality proposals ever reviewed by them. A Swedish 'Collaboration Project' for $30,000 was also approved.

10. Board Meeting #3 held in Kyiv 12-13 Dec 96 reviewed 72 projects approving 36, placed 6 into Resubmit category and kept 7 for review at Board # 4. Total financing approved at Board #3 amounted to 4,400,000.

11. Hence, in total, the STCU is now financing 85 high technology Ukrainian R&D projects for a total of over $10,400,000. We are in this way contributing very significantly to the conversion and non-proliferation process by our direct support of over 1,600 Ukrainian (former) top weapons scientists, keeping them in Ukraine, working on peaceful fundamental as well as applied R&D projects for the general good.

Leo Owsiacki

Executive Director of STCU

Tel: (380-44) 227-81-50.

Fax: (380-44) 227-81-56