KYIV. Sept 22 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine has approved a plan of measures to resolve problem issues and ensure the implementation of the project on the creation of the Cyclone 4 rocket and space complex with a new foreign partner to replace Brazil that left the project in 2015 at the final stage of the project.

The respective draft government order, which was worked out by the State Space Agency of Ukraine (SSAU), was approved at a government meeting on Wednesday, September 20.

SSAU Head Pavlo Dehtiarenko said that before submitting the draft order for consideration by the Cabinet of Ministers the document had been agreed with all agencies concerned.

According to the order, the State Space Agency, the Foreign Ministry, the State Property Fund, the Justice Ministry, the Finance Ministry, the Economic Development and Trade Ministry and the State Fiscal Service should ensure the implementation of the plan’s measures in 2017-2018. SSAU, in turn, should table in the government a generalized report on the implementation of the plan’s activities before the 10th day of the month every quarter.

In accordance with the draft document obtained by Interfax-Ukraine, the plan’s activities include, among other things, developing and submitting for consideration by government the well-grounded proposals on the expediency of extending the effect of the intergovernmental agreements signed with Brazil in 1999 and 2002, which regulate cooperation on the Cyclone 4 project; making an inventory of objects of intellectual property rights received during the implementation of the project; making an inventory of manufactured technological equipment, as well as design and technological documents and ensuring they are preserved at the enterprises that produced them before the issue of their further use is resolved; liquidating after the inventory the Alcantara Cyclone Space bi-national company and preparing a mechanism for mutual settlements between manufacturers; confirming and determining mechanisms for compensation for losses incurred by Ukraine as a result of the cancellation and during the period of effect of the agreement, as well as attracting international assistance to protect Ukraine’s interests.

According to the draft document, Alcantara Cyclone Space should be liquidated before October 30, 2017 with a distribution of its assets, taking into account the intergovernmental agreement with Brazil of 2002 on the protection of technology under the project. Property and funds belonging to Ukraine as a result of liquidation of the bi-national company should be returned to Ukraine in 2017-2018 for further preservation.

At the same time, as early as 2017, the authorized agencies should begin work to ensure the implementation of the Cyclone 4 project with a new foreign partner.

In accordance with the approved plan of measures, draft government decisions and a draft law on supporting the creation of the Cyclone 4 rocket and space complex in the territory of another state with the involvement of foreign investors should be submitted for government consideration in 2017-2018.

As reported, the agreement signed by Brazil and Ukraine in 2003 on long-term cooperation on the use of the Cyclone 4 launch vehicle at the Alcantara launch center was unilaterally denounced by the Brazilian side in the summer of 2015. According to the procedure, the decision to denounce the agreement came into force in the summer of 2016. Kyiv suggested that Brazil’s decision to end cooperation at the final stage of the long-term project could have been taken under political pressure, as Brazil counted on deepening cooperation with Russia. In a new situation, Ukraine announced plans to create an alternative promising launch pad for the Cyclone 4 launch vehicle in North America.

According to the information provided by the State Space Agency of Ukraine in December 2016, the actual costs of the Ukrainian side for the implementation of the Cyclone 4 project in Brazil were estimated to be worth at $592 million.

In March 2017, Canada’s Maritime Launch Services Ltd (MLS) announced plans to build a launch complex in the Canadian province of Nova Scotia for commercial launch of satellites with the help of the Cyclone-4M launch vehicle developed by the Pivdenne design bureau (Dnipro). The first launch of the Cyclone-4M as part of the project is scheduled for 2020. The first funds under the program, which is to be implemented on a commercial basis, were allocated in 2016 by a founder of MLS – United Paradyne Corporation (UPC).

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