The Governing Board of the International Science and Technology Center (ISTC) held its 56th meeting in Moscow. The meeting was chaired by Mr. Ronald Lehman.

Representatives of various ISTC Parties attended the meeting, namely Canada, the European Union, Japan, Georgia, Republic of Korea, Russian Federation, United States of America, Republic of Belarus, Kazakhstan, Kyrgyz Republic, Tajikistan and the Republic of Armenia which participated in the meeting as the rotating CIS Board member.

The Members of the ISTC Governing Board gathered in Moscow to discuss developments with respect to the ISTC and set the direction and priorities for future action.

As a result of a shift in priorities for Canada's Global Partnership Program the Canadian Party informed the Secretariat of Canada's intention to withdraw from the International Science and Technology Centre (ISTC) in Moscow in 2013. A formal notice of withdrawal will be presented in early 2013 which will take effect, as per the Agreement, six months later. 

The Funding Parties once more urged the Russian party to find an umbrella solution with respect to the tax-free and customs duty-free continued use and/or transfer of all ISTC equipment already delivered to Russian institutes and companies. Such an approach would facilitate a smooth outcome for the transfers, thus avoiding a detailed and time-consuming procedure. It was stressed that the transfer of ownership of this equipment should not result in any tax/customs liability, either for the funding parties or for the host-country research institutes, laboratories and other entities involved.

The Governing Board reconfirmed its position that, in accordance with the relevant provisions of the ISTC Agreement, ISTC or party or partner funds are not to be used to payany tariffs, dues, customs duties, import taxes, and other similar taxes or charges imposed by the Russian Federation and the other ISTC countries of the CIS and Georgia. 

The Governing Board discussed the issue of depreciation and title transfer of the equipment associated with ISTC projects and activities and directed that the Secretariat explore these issues with appropriate legal counsel and the Russian Federation and than report back to the Governing Board.

The Governing Board noted the willingness of Rosatom to fund the archiving of the relevant documents and the willingness of the State Archives of the Russian Federation on Science and Technology to become the final repository of ISTC documents related to its work in the Russian Federation and asked the ED to continue the necessary preparatory work also in connection to access rights to these records by third parties after Russia’s withdrawal from ISTC. 

The Governing Board took note of the rearranged repayment schedule of the outstanding loan between ISTC and the Red Star Joint Stock Company. The Governing Board noted that the final payment is to be made by 31 December 2013 at the latest and welcomed the report that payments by Red Star are proceeding according to the agreed schedule. 

The Funding Parties continued to urge Rosatom to reimburse the renovation/maintenance costs at ISTC Headquarters in Moscow as referred to in the Memoranda of 26 October 2011 and of 23 November 2011. These costs were paid from ISTC’s AOB budgets in response to urgent needs and in the expectation on the part of the ISTC funding parties that these expenses would be reimbursed, consistent with the obligations undertaken by the host country in the Agreement.

The Governing Board requested Secretariat to implement the plan presented in the Executive Session for the total liquidation of the activities of the ISTC in Russia within the timeframe set forth in the 13 July 2011 diplomatic note. It was noted that the plan would need to be in conformity with the relevant provisions of the ISTC Agreement and relevant Russian legislation.

Representatives of the ISTC CIS countries and Georgia reiterated their position that ISTC should continue its activities in their countries - now and beyond 2015 - on the basis of the ISTC Agreement of 1992. They asked the Funding Parties to continue project funding, as well as various supplemental programs, for the benefit of scientists and engineers in their countries. The countries expressed their readiness to co-finance programs and projects on a systematic basis, taking their respective economic situations into account. 

The Funding Parties thanked the representative of the Ministry of Education and Science of the Republic of Kazakhstan for steps being taken to facilitate the move of the ISTC from Moscow to the Republic of Kazakhstan. The member states expressed their appreciation for the preparatory work done and decided that the ongoing process of building up a main office in Kazakhstan as soon as possible should continue to move forward in close cooperation with the representatives of the Government of Kazakhstan. Steps should include re-locating existing Branch Office personnel to the new premises, immediate upgrading of the IT infrastructure and premises to acceptable standards and hiring and training of approved relevant staff. 

The Governing Board thanked the ISTC and STCU Secretariats for continuing to cooperate on identifying ways of better synchronization of ISTC and STCU processes. Building on the existing experience, the Board endorsed continuing with the previously identified steps, once the premises are available in the Republic of Kazakhstan. The Parties agreed on the need to retain the separate legal foundations and financial circuits of both Centers and to respect their separate memberships.

The Governing Board approved the new staffing table and organization structure to be in effect by Apr.30, 2013, and authorized the Executive Director implement these decisions in accordance with established ISTC procedures and applicable Russian and international law. 

The Governing Board approved the FY2013 administrative operational budget AOB and supplemental budget SB programs’ activity plans.

The Governing Board approved the proposed annual wage indexation/cost of living adjustment for Russian staff at 7%, effective 1 January 2013. 

As a follow up, the Governing Board noted the launch of a joint ISTC-STCU call for proposals for projects related to land decontamination and monitoring in view of the Fukushima Nuclear Power Plant Accident, as well as the continuation of further detailed technical discussions in Japan between scientists and hopes to see the first projects approved by the next GBM.

The Governing Board approved the final Project Funding Worksheet (FS56). The ISTC approved one new project with a total value of 380,000 USD in new funding for activities in Kyrgyz Republic. It thanked the SAC cordially for the evaluation of the project proposals. It set 18 March 2013 as a deadline for the submission of project proposals for consideration at the next funding session, FS57.

The total sum for partner projects that received funding in 2012 is 1.9 million USD for 6 new projects. Currently there are 200 projects under implementation at ISTC comprised of 79 regular projects and 121 partner and innovation support projects.

The Governing Board thanked the ISTC Secretariat for their professionalism in fulfillment of its tasks during the past year. The Board expressed its understanding of the challenging circumstances under which work currently is being carried out.

The Governing Board thanked representatives from the Republic of Armenia for the valuable contribution to the work of Governing Board of ISTC in their function as rotating Governing Board Member. From 1 January 2013, Georgia will take this position of rotating Governing Board Member. 

The Governing Board noted with deep appreciation, the outstanding work of former Executive Director Adriaan van der Meer over the past four years and of Deputy Executive Director, Global Security, Environment, Biotechnology & Health Leo Owsiacki, for the past eight years. The Governing Board expressed its deep appreciation for the role of Sergey Vorobiev as acting ED since the departure of Adriaan van der Meer. 

The Governing Board is pleased to confirm the nomination of Mr. Leo Owsiacki as interim Executive Director for a six-month period, beginning January 1, 2013. Sergey Vorobiev will continue as acting ED until December 31, 2012.

The Governing Board is pleased to confirm the extension of USA Deputy Executive Director Michael Einik until January 31, 2014. 

The Governing Board is pleased to confirm approval the re-instatement and prolongation of the position of Senior Program Manager, GSBEH Department (Mr. Michael Weaver) for one year from September, 2012 to October 2013.

The Governing Board decided to convene the next Governing Board meeting on 25-26 June 2013 in Dushanbe, Tajikistan.