1.Negotiations are being finalized regarding the accession of the European Community to the STCU. This is expected to be completed by the Summer of 1998. Discussions are also under way with Japan to also contribute funds as a partner. Other countries have also recently shown interest in joining the STCU.

2. The USA and Canada have indicated that they will continue participating in the STCU and that both will allocate significant additional funds for the period 1998-2000.

3. Several major Western laboratories, international organizations and corporations have indicated their interest in working with the STCU as partners in supporting directed R&D projects in cooperation with Ukrainian scientists and institutes.

4. To enhance awareness and recognition of the STCU outside of Ukraine, a video promoting the achievements and capabilities of this important area of Ukrainian expertise was recently produced. This video is available in English and Ukrainian in a short 12-minute version, suitable for business promotion and in a 30-minute version, more suitable for standard programming. This video provides information and help to promote Ukrainian science by attracting the interest of possible investors and R&D cooperates from outside of Ukraine.

5. The First Annual Report 1996 was released in December 1997 and is available in request.

6. Georgia and Uzbekistan have formally joined the STCU and are eligible to participate in the Agreement.

7. The STCU's second Executive Director from Canada began a 3-year term on January 1, 1998.

Leo Owsiacki

Executive Director of STCU

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

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