UK Government Reviews Export License for Cygnet Texkimp Amid Russian Military Concerns

The UK government is currently reviewing its decision to allow Cygnet Texkimp, a Cheshire-based company, to export advanced machinery to Armenia. This review follows revelations about potential links between Cygnet's Armenian client, Rydena LLC, and the Russian military supply chain. The machinery in question produces carbon fibre “prepreg,” a material that can be utilized in both civil and military applications, including the production of missiles and drones.

The Guardian

Cygnet Texkimp was poised to export two machines to Rydena, which was established by former executives of Umatex, a Kremlin-owned entity involved in supplying the Russian military. This connection has raised alarms among UK officials, particularly in light of ongoing sanctions against Russia due to its invasion of Ukraine. The trade minister, Chris Bryant, announced that the export deal would be paused pending a thorough review, emphasizing the need to reassess whether the equipment could be used for military purposes.

The Guardian

Chris Bryant stated that the government had reopened the license application for Cygnet Texkimp’s export, indicating that some elements of the production equipment should be classified under dual-use controls. These controls are designed to prevent civilian exports from being misused for military applications. Bryant confirmed that no exports had yet occurred and that the Department for Business and Trade would assess the license before any shipment could proceed.

The Guardian

Cygnet Texkimp has maintained that it has adhered to all export regulations and proactively sought a license due to the dual-use nature of its equipment. The company expressed its commitment to transparency and compliance with UK export control laws. A spokesperson reiterated that they would await the outcome of the government’s review process.

The Guardian

Critics have raised concerns about the adequacy of the UK government's vetting process for export licenses, particularly in light of the links between Rydena and the Russian military. Liam Byrne, chair of the House of Commons business committee, highlighted these issues in his correspondence with Bryant, urging a reevaluation of the export decision. Experts have warned that the involvement of Rydena's founders in the Kremlin's military supply chain necessitates a cautious approach to any export agreements.

The Guardian

The UK government plans to strengthen export licensing laws to enhance controls on goods that could potentially be diverted to Russia. This initiative aims to prevent future incidents where civilian exports might inadvertently support military operations. The outcome of the review of Cygnet Texkimp's export license will be closely monitored by both government officials and industry stakeholders.

The Guardian

• “We are currently reviewing an earlier determination that the export was not subject to licence as the goods were not considered to be controlled (a ‘No Licence Required’ decision).” — Chris Bryant, Trade Minister

The Guardian

• “You can be assured that I will continue to take a close direct interest in this case,” — Chris Bryant, Trade Minister

The Guardian