UK Government Reviews Tech Export to Armenia Amid Russian Military Link Fears
The UK government has initiated a comprehensive review of a decision to permit a British company to export advanced technological equipment to Armenia, following revelations of connections to Russia's military supply chain. This move comes as part of broader efforts to enforce sanctions against Russia in response to Vladimir Putin's full-scale invasion of Ukraine, which has prompted coordinated sanctions from the EU, US, UK, and other nations.
Scrutiny Over Cygnet Texkimp's Export Deal
Cygnet Texkimp, a Cheshire-based firm specializing in hi-tech manufacturing, was on the verge of exporting two machines designed to produce carbon fibre "prepreg"—a lightweight material with applications in both civil and military sectors, including missile and drone production. Initially, Whitehall officials informed Cygnet that no special licence was required for the shipment, indicating that routine vetting processes had raised no immediate concerns.
However, Trade Minister Chris Bryant has now placed the deal on hold pending a thorough review. This action was prompted by a Guardian report that highlighted links between Cygnet's Armenian client, Rydena LLC, and the Russian military. Rydena was established two years into the Ukraine invasion by former executives of Umatex, a Kremlin-owned company integral to Putin's war machine.
Dual-Use Controls and Sanctions Evasion Risks
In a letter to Liam Byrne, chair of the House of Commons business committee, Bryant confirmed that the government is reconsidering its earlier determination that the export did not require a licence. He stated, "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)." The review focuses on dual-use controls, which regulate equipment usable for both civil and military purposes to prevent sanctions evasion.
Experts have warned that the Rydena founders' past involvement in Russia's military supply chain raises significant concerns about potential diversion of carbon fibre to Russia, circumventing international sanctions. While Rydena has denied conducting business with Russia or sanctioned entities, and both companies assert the equipment will be used for civil applications, the government is taking precautionary measures.
Government Actions and Future Implications
Bryant emphasized that the Department for Business and Trade has reopened the licence application, ensuring no export has occurred yet. He noted, "You can be assured that I will continue to take a close direct interest in this case," and highlighted plans to strengthen export licensing laws to better control goods diverted to Russia. The Export Control Joint Unit (ECJU), which combines government departments and intelligence services to flag risky export deals, is involved, though it remains unclear if it was aware of the Rydena executives' Umatex background.
A spokesperson for Cygnet Texkimp stated, "At the outset of this order, we proactively engaged with the relevant UK authorities and voluntarily submitted an application for an export licence... We acknowledge the UK government's decision to review its earlier guidance. Cygnet Texkimp has always operated in full compliance with UK export control regulations." The company, with a 50-year history of compliance, maintains open dialogue with authorities.
This case underscores ongoing challenges in enforcing sanctions and preventing technology from aiding military efforts in conflict zones, as the UK and allies intensify scrutiny of global trade networks.
