1. UKRAINE-NON-PROLIFERATION -STCU 1 UKRAINE – NON-PROLIFERATION – STCU

2. UKRAINE-NON-PROLIFERATION -STCU 2 Ukraine on its Way to Non-nuclear Status Pre-conditions 16 July 1990 the Ukrainian Parliament (Supreme Rada) adopted the Declaration on State Sovereignty of Ukraine 24 October 1991 the Supreme Rada adopted a Statement on the Non-nuclear Status of Ukraine 7 May 1992 the President of Ukraine sent a letter to the President of the USA saying that “Ukraine would ensure elimination of all its nuclear arsenal including strategic offensive arms based on its territory”.

3. UKRAINE-NON-PROLIFERATION -STCU 3 Ukraine on its Way to Non-nuclear Status Legal steps  Statement of the Supreme Rada on the Non-nuclear Status of Ukraine, 24.10.1991  Treaty between USA and USSR on the Reduction and Limitation of Strategic Offensive Arms (START Treaty), 31.07.1991  Decree of the Supreme Rada on Supplemental Measures to Obtain the Non-Nuclear Status of Ukraine, 9.04.1992  Lisbon Protocol to the START Treaty, 23.05.1992  Decree of the Supreme Rada on Ratification of the START Treaty and the Lisbon Protocol, 18.11.1993  Trilateral Statement signed by the Presidents of Ukraine, USA, and Russia on Concrete Steps Aimed at Obtaining the Non-nuclear Status of Ukraine, 14.01.1994  Decree of the Supreme Rada on Implementing Recommendations of the Decree on Ratification of the START Treaty and the Lisbon Protocol, 3.02.1994  Law of the Supreme Rada on Accession of Ukraine to the Treaty on the Non-proliferation of Nuclear Weapons (NPT) dated July 1, 1968, 16.11.1994  Memorandum on Security Guarantees with Regards to the Accession of Ukraine to the NPT, 5.12.1994

4. UKRAINE-NON-PROLIFERATION -STCU 4 Ukraine on its Way to Non-nuclear Status Guarantees to Ukraine 14 January 1994 after signing the Trilateral Statement on liquidation of nuclear arms on the territory of Ukraine Leonid Kravchuk, President of Ukraine stressed that “the documents signed in Kremlin would provide solid guarantees to the national security of Ukraine. Besides… our country would receive compensation for the nuclear arms to be eliminated”.

5. UKRAINE-NON-PROLIFERATION -STCU 5 Ukraine on its Way to Non-nuclear Status Existing contradictions  16 November 1994 Ukraine acceded to the NPT as a country being “the owner of the nuclear arms inherited from the former USSR”  Under Article IX p.3 of the NPT a nuclear power is the one which has manufactured and exploded nuclear weapon or other nuclear explosive device prior to 1 January 1967  At that time only the USA, USSR, UK, France, and China officially had the status of nuclear powers

6. UKRAINE-NON-PROLIFERATION -STCU 6 Ukraine on its Way to Non-nuclear Status Existing Contradictions (Continuation)  On 29 July 1950 Oleg Lavrentyev, a scientist from the Kharkiv Physics and Technology Institute, was the first to describe the nuclear fusion reaction and to propose the model of the H-Bomb  From 29 August 1949 to 31 December, 1987 the USSR has carried out 618 nuclear test explosions out of which 126 were reported as peaceful ones  Presently, it is known that a number of the reported peaceful explosions were in reality military ones and some of them were carried out on the territory of the Ukrainian Soviet Socialist Republic Thus, Ukraine tested missiles on its territory  An answer weather the Ukrainian Soviet Socialist Republic manufactured missiles prior to 1 January 1967 is with the Ministry of Defense of the Soviet Union

7. UKRAINE-NON-PROLIFERATION -STCU 7 Ukraine on its Way to Non-nuclear Status Ukraine in International Non-proliferation Treaties and Regimes  Comprehensive Test Ban Treaty, 24.09.1996  Treaty between Ukraine and International Atomic Energy Agency (IAEA) Regarding Guarantees, 13.01.1995  Treaty on the Non-proliferation of Nuclear Weapons, 16.11.1994  Convention on the Prevention of Development, Production, Collection, and Use of Chemical Weapons and their Destruction, 13.01.1993  Other treaties signed by the USSR where Ukraine became the assignee after disintegration of the USSR

8. UKRAINE-NON-PROLIFERATION -STCU 8 Ukraine on its Way to Non-nuclear Status Ukraine in International Export Regimes  Missile Technology Control Regime, 27.05.1998  Zangger Committee, May 1997  Wassenaar Convention (Multilateral Regime of Control of Export of Conventional Weapons and Dual-use Goods and Technology), 11.07.1996  Nuclear Suppliers Group, 20.04.1996

9. UKRAINE-NON-PROLIFERATION -STCU 9 The Ukrainian Military Industrial Complex Past Since the mid 1990-s Ukraine has been in the list of top ten exporters of military equipment and services ($2.627 bln. USD during 1997-2001 Since the mid 1990-s Ukraine has been in the list of top ten exporters of military equipment and services ($2.627 bln. USD during 1997-2001 1/4 of the entire soviet military industrial complex was located on the territory of Ukraine (over 1,800 military enterprises employing approximately 2.7 mln. people) 1/4 of the entire soviet military industrial complex was located on the territory of Ukraine (over 1,800 military enterprises employing approximately 2.7 mln. people) Pivdenmash, Kharkiv Malyshev Tank Construction Plant, Antonov Aviation Scientific Technical Complex and other enterprises were the most powerful in the former USSR Pivdenmash, Kharkiv Malyshev Tank Construction Plant, Antonov Aviation Scientific Technical Complex and other enterprises were the most powerful in the former USSR Data source: Romyr Report Spring-Summer 2003, #1 (15)

10. UKRAINE-NON-PROLIFERATION -STCU 10 The Ukrainian Military Industrial Complex Priorities: Past Rocket and radar technologies Rocket and radar technologies Naval shipbuilding Naval shipbuilding Aircraft construction Aircraft construction High-precision weaponry High-precision weaponry

11. UKRAINE-NON-PROLIFERATION -STCU 11 Elimination of SOA in Ukraine  Dismantlement of Strategic Offensive Arms (SOA)  Decommissioning of the SOA infrastructure  Conversion of military plants and scientific institutions: STCUSTCU Technology parksTechnology parks Business incubatorsBusiness incubators

12. UKRAINE-NON-PROLIFERATION -STCU 12 Dismantlement of SOA 1. Liquid fuel missiles: ICBM’s (intercontinental ballistic missiles) silos (Khmelnitsky, Pervomaisk, Kharkiv)  130 silos of SS-19 ICBMs; 2 training silos of SS-19 ICBMs, 1 training silo of SS-18 ICBMs and 1 training silo of SS-9 ICBMs; 13 ICBM’s mission control centers; 130 SS-19 ICBMs  5,000 tonnes of heptyl deposited in a storage in Shevchenkovo (July 1998) 2. Solid fuel missiles: Silos of ICBMs (Mykhailenky, Pavlograd, Pervomaisk)  46 SS-24 ICBMs and 5 mission control centers  Location of solid missile fuel storage - Pavlograd 3. Heavy bombers:  19 Tu-160, 65 АКRKh -55 (Pryluky)  21 Тu-95, 453 АКRKh-55 (Uzin)  4 Тu-95 (Bilotserkivsk)

13. UKRAINE-NON-PROLIFERATION -STCU 13 Decommissioning of SOA’s Infrastructure  Nuclear missiles and fuel infrastructure of Pervomaysk ICBM division  Nuclear missiles and fuel infrastructure of Khmelnitsk ICBM division  Centralized nuclear missiles storage sites in Makariv and Kirovograd  Centralized nuclear missiles storage sites of the heavy bombers’ divisions in Uzin and Pryluky

14. UKRAINE-NON-PROLIFERATION -STCU 14 Cooperative Treat Reduction in Ukraine Continuation ProgramPartnersCost US $ mln. Elimination of the strategic nuclear arms US Ministry of Defense Ministry of Defense of Ukraine $244,7 Decommissioning of the nuclear arms infrastructure US Ministry of Defense Ministry of Defense of Ukraine $23,4 Defense Industry Conversion - Conversion of enterprises - Conversion and building lodging - Science and technology center US Ministry of Defense US Ministry of Defense, US Department of States Ministry for Machine Building, Military Complex and Conversion of Ukraine $70 Broadening contacts between representatives of defense ministries and arms forces US Ministry of Defense Ministry of Defense of Ukraine $8,3 Additional programs - Emergency response - Export control - Intergovernmental communications - Cooperation in improvement of civil nuclear reactors protection - Control over fissile materials US Ministry of Defense, US Department of States, US Department of Energy Ministry of Defense of Ukraine, Experts and Technical Committee of the Cabinet of Ministers of Ukraine, State Committee for Nuclear and Radioactive Security $51,2 TOTAL – US $395,6 mln.

15. UKRAINE-NON-PROLIFERATION -STCU 15 Conversion Economic Model  The government of Ukraine has determined an economic model based on innovations as a key instrument of further economic development of the country  A specific type of such innovation model is to be defined by scientists themselves and, first of all, by the National Academy of Science of Ukraine (NASU)

16. UKRAINE-NON-PROLIFERATION -STCU 16 Conversion Legal Base  Decree of the Supreme Rada “On Keeping the Legislation on Development of the Science and Technology Potential and Innovative Activities in Ukraine”, 16.06.2004  Law of Ukraine “On State Complex Program of Development of High and Science Intensive Technologies”, 09.04.2004  Decree of the Cabinet of Ministers “On Approving the Procedures of Formulating, Expertise and Discussing Priorities of Innovative Activities”, 17.07.2003  Law of Ukraine “On Priorities in the Innovative Activities of Ukraine”, 16.01.2003  Law of Ukraine “On Innovative Activities”, 04.07.2002

17. UKRAINE-NON-PROLIFERATION -STCU 17 Conversion Legal Base (Continuation)  Law of Ukraine “On Priorities in the Development of Science and Technology”, 11.07.2001  Law of Ukraine “On the Special Regime Concerning Activities in the Area of Investment and Innovation of Technoparks”, 16.07.1999  Decree of the Supreme Rada of Ukraine “On the Concept of the Development of Science, Technology and Innovation in Ukraine”, 13.07.1999  Law of Ukraine “On Scientific and Technological Expertise”, 10.02.1995  Law of Ukraine “On Activities in the Area of Science and Technology”, 13.12.1991

18. UKRAINE-NON-PROLIFERATION -STCU 18 Conversion Law “On Priorities in the Innovative Activities of Ukraine”  Modernization of electric power plants; new and renewable sources of energy; new resource saving technologies  Machine and instrument building; development of high quality metallurgy  Nanotechnologies; microelectronics, IT, telecommunications  Improvement of chemical technologies, new materials processing, development of biotechnologies  High tech development of agriculture and manufacturing industry  Transport systems  Health care and environment protection  Development of innovation culture of the society

19. UKRAINE-NON-PROLIFERATION -STCU 19 Conversion Financial Resources  State funding  Other sources: Economic agreementsEconomic agreements Technoparks, business incubatorsTechnoparks, business incubators Grant agreements (STCU, CRDF, TACIS, etc.)Grant agreements (STCU, CRDF, TACIS, etc.)  Estimated funding of the scientific institutions can be found on www.stcu.int (Source: questioning conducted by the STCU in 2003) www.stcu.int

20. UKRAINE-NON-PROLIFERATION -STCU 20 Conversion Science & Technology Center in Ukraine (STCU) STCU is an intergovernmental non-for- profit organization Mission: For a safer and better world, to assist former WMD experts in the transition to self-supporting, peaceful activities in the international science and business communities …and do so using the best professional practices For a safer and better world, to assist former WMD experts in the transition to self-supporting, peaceful activities in the international science and business communities …and do so using the best professional practices

21. UKRAINE-NON-PROLIFERATION -STCU 21 Conversion Landmarks in STCU development 25 October 1993 Agreement to Establish the STCU between Governments of Ukraine, Canada, USA and Sweden 4 May 1994 Presidential Decree № 202/94 On approval of the Agreement 7 July 1997 a Protocol to amend the Agreement under which the European Union replaced Sweden 29 December 1997 accession of Uzbekistan to the Agreement 18 March 1998 accession of Georgia to the Agreement 15 March 2001 Ratification of the Agreement by the Supreme Rada 27 June 2003 accession of Azerbaijan to the Agreement 17 June 2004 accession of Moldova to the Agreement

22. UKRAINE-NON-PROLIFERATION -STCU 22 Conversion STCU: Goals  Facilitating research opportunities for former weapons-of-mass-destruction scientists that permanently redirects their talents to peaceful aims  Assisting the protection and exploitation of research results attained to benefit the scientists creating them and the economies and societies of the Parties governing the Center  Supporting the integration of the scientists into credible international, national and regional research efforts

23. UKRAINE-NON-PROLIFERATION -STCU 23 Conversion STCU Parties Azerbaijan Georgia Moldova Ukraine Uzbekistan Canada European Union USA

24. UKRAINE-NON-PROLIFERATION -STCU 24 Conversion Science in STCU Member-Countries Ukraine Uzbekista n Georgia Moldov a Total number of scientists 157,500 41,142 41,142 14,000 14,0005,000 Involved in WMD development 15,000 15,000 4,000 4,000 2,800 2,8003,750 Total number of R&D institutes & organizations 1,389 1,389 342 342 225 22580

25. UKRAINE-NON-PROLIFERATION -STCU 25 Conversion Regional Structure of the National Academy of Sciences of Ukraine

26. UKRAINE-NON-PROLIFERATION -STCU 26 Conversion Scheme of Work of the STCU The STCU donor-countries ensure:  funding of scientific and technical projects The STCU recipient countries ensure:  preferential terms of taxation (salary payments in the form of grants, etc.)  simplified procedure of custom clearance of scientific equipment  repayment of overhead expenses to projects executors

27. UKRAINE-NON-PROLIFERATION -STCU 27 Conversion Structure of the STCU Contacts with the Government of Ukraine  Supreme Rada of Ukraine Committee on Education and ScienceCommittee on Education and Science Committee on European IntegrationCommittee on European Integration Committee on International AffairsCommittee on International Affairs  Cabinet of Ministers of Ukraine  Ministry for Foreign Affairs  Ministry of Justice  Ministry of Education and Science in Ukraine  Ministry of Economy and European Integration  National Space Agency  National Academy of Sciences  Agrarian Academy of Science in Ukraine

28. UKRAINE-NON-PROLIFERATION -STCU 28 Conversion Structure of the STCU Contacts with the Government of Ukraine (continuation)  Supreme Rada of Ukraine Committee on Education and ScienceCommittee on Education and Science Committee on European IntegrationCommittee on European Integration Committee on International AffairsCommittee on International Affairs  Cabinet of Ministers Vice Prime Minister on Humanitarian PolicyVice Prime Minister on Humanitarian Policy Secretariat of the Vice Prime Minister on Humanitarian PolicySecretariat of the Vice Prime Minister on Humanitarian Policy  Law about Giving a Consent on the Necessity for Ukraine of the Agreement to Establish the STCU dated 15 March 2001  Decree (#602-p, 25.10.2002) on placing of the STCU according to the Article XIII of the STCU Agreement  Preparation of a Draft Law of Ukraine On ratification of the Protocol to the STCU Agreement on joining of the EU

29. UKRAINE-NON-PROLIFERATION -STCU 29 Conversion Structure of the STCU Contacts with the Government of Ukraine (continuation)  Ministry for Foreign Affairs State secretary on European IntegrationState secretary on European Integration Department of State ProtocolDepartment of State Protocol Department of Economic and Science & Technology CooperationDepartment of Economic and Science & Technology Cooperation  Ministry of Justice  Accreditation of the STCU as an international organization with diplomatic immunities  Accreditation of the STCU foreign personnel  Confirmation of authenticity of documents  Storage of originals of the Agreement  External guard of the STCU office  Harmonization of the part of the STCU Status related to intellectual property rights

30. UKRAINE-NON-PROLIFERATION -STCU 30 Conversion Structure of the STCU Contacts with the Government of Ukraine (continuation)  Ministry of Education and Science First Deputy to the State SecretaryFirst Deputy to the State Secretary Department of Innovative DevelopmentDepartment of Innovative Development Department of Science and Technology DevelopmentDepartment of Science and Technology Development  Ministry of Economy and European Integration Deputy to the State SecretaryDeputy to the State Secretary Department of Cordination of International Technical AssistanceDepartment of Cordination of International Technical Assistance  Giving consent on the implementation of the STCU projects  Defining priorities of innovative activities in Ukraine  Preparation of documents for ratification of the Protocol to the STCU Agreement on joining of the EU  Coordination of programs of technical cooperation implemented by donor- counties in Ukraine

31. UKRAINE-NON-PROLIFERATION -STCU 31 Conversion Structure of the STCU Contacts with the Government of Ukraine (continuation)  National Space Agency  National Academy of Science in Ukraine  Agrarian Academy of Science in Ukraine  Staff supply to the STCU  Cooperation with the STCU to finance NASA-NASU projects  Coordination of cooperation of the STCU with the science community in Ukraine  Sending a Representative to the STCU Advisory Committee  Attraction of agrarian researches for cooperation with the National Laboratory PNWL (USA) through the IPP Program of the DOE in the USA

32. UKRAINE-NON-PROLIFERATION -STCU 32 Conversion STCU Programs  Regular projects are funded by the governments of the donor countries  Partner projects are funded by governmental and commercial agencies operating in donor countries  Patent Grants Program – financing patenting in donor countries  Travel grants Program – financing travel to establish partnering links  Conference Support Program co-financing international scientific conferences, training courses, and seminars to promote commercialization of technologies  Joint Projects with governments and scientific institutions of the recipient countries  Training Program – organizing trainings for scientists of the recipient countries for them to obtain professional skills needed to participate in international programs and to commercialize research results

33. UKRAINE-NON-PROLIFERATION -STCU 33 Conversion STCU Technical Areas 1. Nuclear safety 2. Environmental protection and monitoring 3. Power engineering and energy-saving technologies 4. Medicine, health protection and biotechnologies 5. Transport infrastructures 6. Infrastructures of communication industry 7. Information technologies 8. Experimental industrial technologies 9. Equipment and devices 10. Sensors and measuring systems 11. Development of new materials 12. Coatings 13. Fundamental scientific research

34. UKRAINE-NON-PROLIFERATION -STCU 34 Conversion Distribution of Regular Projects and Funds by STCU Technical Areas, 1 September 2003 (number of projects), budget (mln.$)

35. UKRAINE-NON-PROLIFERATION -STCU 35 Conversion Distribution of Partner Projects and Funds by STCU Technical Areas, 1 September 2003 (number of projects), budget (mln.$)

36. UKRAINE-NON-PROLIFERATION -STCU 36 Conversion Technoparks Technology park – is an institution with a major task of combining scientific research and development of new technologies with their industrial application and manufacturing of highly competitive and technologically advanced products Mission: Contributing to strengthening scientific and technology potential of a country

37. UKRAINE-NON-PROLIFERATION -STCU 37 Conversion Technoparks: Goals  Supporting national science and technology potential of a country in order to contribute to its economic development basing on development and production of new high-technology products, competitive on world and national markets  Accumulating funds from various sources to finance science intensive innovative projects  Reinvesting results of innovative activities into further developments Source: Center for researches of science and technology potential http://soskin.info/ http://soskin.info/

38. UKRAINE-NON-PROLIFERATION -STCU 38 Conversion Technoparks – World Experience USA: around 150 technoparks 1951 - the world’s first technology park was set up on the basis of Stanford University, California Great Britain: around 50 technoparks The first technopark was set up in 1980-s as an attempt to solve a crisis in mining and textile industries. China: Currently the country has 53 national, 50 provincial and 30 attached to universities technology parks There are over 1000 technoparks today in the world

39. UKRAINE-NON-PROLIFERATION -STCU 39 Conversion Technoparks in Ukraine: Legal Base  6 April 1999 – Decree of the President of Ukraine of “On Establishment of Technoparks in Ukraine”  1 June 2000 – Law “On Special Procedures to be Applied for Technology Parks in the Sphere of Investment and Innovation Activities” 2000 - first technology park in Ukraine 2000 - first technology park in Ukraine

40. UKRAINE-NON-PROLIFERATION -STCU 40 Conversion Technoparks in Ukraine 1. “Y.O. Paton Electric Welding Institute” (Kyiv) 2. “Institute of Monocrystals” (Kharkiv) 3. “Semiconductor Technologies and Materials, Optoelectronics and Sensor Engineering” (Kyiv) 4. “Vuglemash” (incorporating institutions and plants based in Donetsk, Dnipropetrovsk, Kharkiv and Donetsk region) 5. “Institute of Technical Thermal Physics” (incorporating institutions and plants based in Kyiv, Korosten, Zaporizhya) 6. “Ukrinfotech” (Kyiv) 7. “Intellectual information technologies” (Kyiv) 8. “Perspektyva” (National Technical University “Kyiv Polytechnic Institute”) (Kyiv)

41. UKRAINE-NON-PROLIFERATION -STCU 41 Conversion Business Incubators (BI) Business Incubator – is an organization that contributes to development of an enterprise from its launching up to the stage of sustainability Technological BI – is a BI focusing its activities on commercialization of technologies Mission – contributing to environment favorable for entrepreneurship and small business support Data on BIs is presented by the Center of Innovation Development

42. UKRAINE-NON-PROLIFERATION -STCU 42 Conversion BI: Goals Contributing to development of products basing on new technologies Contributing to development of products basing on new technologies Contributing to products innovations; facilitating economic activities in the region Contributing to products innovations; facilitating economic activities in the region Creating work places or loading the existing ones Creating work places or loading the existing ones Attracting the manufacturing facilities that are not in use (laboratory, office, and storage facilities) Attracting the manufacturing facilities that are not in use (laboratory, office, and storage facilities) Data of the Paton Welding Institute Technopark www.tp.paton.kiev.ua www.tp.paton.kiev.ua

43. UKRAINE-NON-PROLIFERATION -STCU 43 Conversion BI: World Experience  The first BI was set up in the USA in 1959  Currently there are over 3,000 BI in the world  Around half of them are operating in developed countries

44. UKRAINE-NON-PROLIFERATION -STCU 44 Conversion BI Distribution by Countries

45. UKRAINE-NON-PROLIFERATION -STCU 45 Conversion Business Incubators in Ukraine 1997 – launching the BI Development Program in Ukraine with the support of the USAID 1997 – launching the BI Development Program in Ukraine with the support of the USAID 1998 – creation of the Ukrainian Association of BIs and innovation centers 1998 – creation of the Ukrainian Association of BIs and innovation centers As of 1 January 2002 there were 61 BIs in Ukraine, but only 7 of them fully correspond the BI definition As of 1 January 2002 there were 61 BIs in Ukraine, but only 7 of them fully correspond the BI definition

46. UKRAINE-NON-PROLIFERATION -STCU 46 Conversion Technological BIs in Ukraine  Center for Innovations Development – Kyiv  Center for Small Business Development “Kharkiv Technologies” - Kharkiv  Small Business Incubator - Slavutich

47. UKRAINE-NON-PROLIFERATION -STCU 47 Conversion BI Services  Access to financial resources  Professional training and consulting  Investment and partners search  Business plans and innovation projects development  Internet access  Information services  Contributing to cooperation between Ukrainian and foreign enterprises

48. UKRAINE-NON-PROLIFERATION -STCU 48 Conversion Results 1. The Ukrainian share of high technology products on the world high tech market worth of $2,5- 3,0 billion/year is just about 0,1% 2. The 2003 State Budget provided only 0,31% of GDP, that is UAH 762,2 mln.

49. UKRAINE-NON-PROLIFERATION -STCU 49 Conversion Results (continuation) 3. STCU:  As of 2004 around 600 projects have been financed on the total amount of $ US 109 M  Each year STCU finances around 30 projects  Annual STCU budet is around 15-20 $ US M 4. Technoparks:  As of 2003 half of the operating technology parks are implementing 64 innovation projects  2000-2002 – receipts from sales of innovative products amounted to more than UAH 292.8 mln.  2000-2002 – export sales amounted to UAH 102.9 mln.

50. UKRAINE-NON-PROLIFERATION -STCU 50 Contact Information Dr. Borys A. Atamanenko Senior Deputy Executive Director Science & Technology Center in Ukraine Phone: (38-044) 490-71-50 Fax: (38-044) 490-71-45 E-mail: borys.atamanenko@stcu.int borys.atamanenko@stcu.int www.stcu.int