A planned shipment of sophisticated British manufacturing equipment to a company in Armenia has been suspended pending a government review, following questions about the Armenian firm’s potential connections to Russian military interests.
The UK-based firm, Cygnet Texkimp, was preparing to export two machines designed to produce carbon fibre “prepreg”—a versatile, high-strength material with applications ranging from civilian industries to advanced weaponry. The British government had initially informed the company that a special export licence was not required for the transaction.
However, that determination is now under official reconsideration. The reassessment was prompted by parliamentary scrutiny and subsequent media reports which highlighted that the founders of the Armenian recipient company, Rydena LLC, previously held senior roles at a Russian state-owned firm, Umatex. Umatex is a known supplier to Russia’s defence sector.
Trade Minister Chris Bryant confirmed the review in a letter to the chair of the Commons Business Committee. Bryant stated that elements of the production equipment are now being evaluated under “dual-use” controls. These regulations are designed to prevent goods with both civilian and military applications from being diverted for use in conflict zones or by sanctioned entities.
Minister Bryant emphasised that the export licence application has been reopened and must be fully assessed before any equipment can leave the UK. He confirmed that no export has yet occurred.
In a statement, Cygnet Texkimp said it had voluntarily sought government guidance from the outset, recognising the potential dual-use nature of its technology. The company stated it has always complied fully with UK export regulations and will await the outcome of the government’s review.
The case has unfolded against the backdrop of the ongoing war in Ukraine, where carbon fibre composites are critical for manufacturing drones and missiles. The UK government has signalled its intent to tighten export licensing laws further to prevent the circumvention of sanctions against Russia.
