Decision to allow UK exports to Armenian firm under review over Russian links

"Cygnet Texkimp, based in Cheshire, was weeks away from exporting two machines that produce carbon fibre prepreg, a lightweight material that can be used in a range of civil and military applications. Whitehall officials told Cygnet last year that it did not require a special licence for the shipment, signalling that the government's routine vetting process for exports had raised no concerns about how the equipment could be used and by whom."

"Rydena was established two years into the full-scale invasion of Ukraine by former executives of Umatex, a Kremlin-owned company that has emerged as one of the most important suppliers to Vladimir Putin's war machine. Experts have warned that the Rydena founders' past involvement in the Kremlin's military supply chain should raise concerns about whether Cygnet's hardware could be used to supply carbon fibre to Russia, circumventing sanctions."

"The material they produce can be used in the production of missiles and drones, crucial weapons in the war in Ukraine. The decision comes after Liam Byrne, chair of the House of Commons business committee, wrote to Bryant to highlight a Guardian report outlining the links between Cygnet's Armenian client, Rydena LLC, and the Russian military."

The UK government is reconsidering its approval for Cygnet Texkimp, a Cheshire-based company, to export carbon fibre prepreg production machines to Armenia. The equipment produces lightweight material used in civil and military applications, including missiles and drones. The Armenian buyer, Rydena LLC, was founded by former executives of Umatex, a Kremlin-owned company supplying Russia's military. Trade Minister Chris Bryant halted the deal pending review after concerns emerged that the equipment could circumvent sanctions by supplying carbon fibre to Russia. Rydena and Cygnet claim the equipment will serve civil purposes only.

Read at www.theguardian.com