UK Export to Firm Linked to Russian War Machine Raises 'Clear Diversion Risk'
The UK government's decision to award a British company, Cygnet Texkimp, a contract to export hi-tech machinery to Armenia has raised concerns among experts and lawmakers. The firm, which produces carbon fibre "prepreg", a lightweight material used in both civil and military applications, is linked to the Russian war machine through its past work with Umatex, a division of Russia's state-owned nuclear energy company, Rosatom.
The machinery, currently undergoing final assembly at Cygnet's warehouse in Northwich, Cheshire, could be just weeks away from being exported to Rydena LLC, a newly formed company in Armenia established by former executives of Umatex. The UK government has not commented on whether it was aware of the link between Cygnet and Umatex.
Critics argue that the contract raises significant concerns about the robustness of UK export controls designed to prevent British companies from unwittingly taking part in the destruction of Ukraine. Sanctions experts warn that there is a "clear diversion risk" if the machinery falls into Russian hands, despite the company's assurances that it has undergone end-user checks and received full export approval.
The machine, intended for civilian industrial production, was sent technical drawings to Rydena already as part of the design and assembly process. The company claims to have no business links with Russian companies or government entities, but its executives maintain ties with Russia through other companies.
Lawmakers are urging the government to explain what it did to assure itself that this export deal was safe from diversion to Russia. Liam Byrne MP, chair of the select committee scrutinising the business department, said: "There are a bunch of red flags here and the government has to explain what it did to assure itself that this was all fine."
Cygnet maintains that it takes great care to adhere to UK export rules and has undergone detailed end-user checks. However, its decision to send technical drawings to Rydena before receiving full export approval raises questions about the company's compliance with regulations.
The UK government operates one of the most robust export control regimes in the world, but critics argue that it must do more to prevent British companies from inadvertently supporting Russia's war efforts.
The UK government's decision to award a British company, Cygnet Texkimp, a contract to export hi-tech machinery to Armenia has raised concerns among experts and lawmakers. The firm, which produces carbon fibre "prepreg", a lightweight material used in both civil and military applications, is linked to the Russian war machine through its past work with Umatex, a division of Russia's state-owned nuclear energy company, Rosatom.
The machinery, currently undergoing final assembly at Cygnet's warehouse in Northwich, Cheshire, could be just weeks away from being exported to Rydena LLC, a newly formed company in Armenia established by former executives of Umatex. The UK government has not commented on whether it was aware of the link between Cygnet and Umatex.
Critics argue that the contract raises significant concerns about the robustness of UK export controls designed to prevent British companies from unwittingly taking part in the destruction of Ukraine. Sanctions experts warn that there is a "clear diversion risk" if the machinery falls into Russian hands, despite the company's assurances that it has undergone end-user checks and received full export approval.
The machine, intended for civilian industrial production, was sent technical drawings to Rydena already as part of the design and assembly process. The company claims to have no business links with Russian companies or government entities, but its executives maintain ties with Russia through other companies.
Lawmakers are urging the government to explain what it did to assure itself that this export deal was safe from diversion to Russia. Liam Byrne MP, chair of the select committee scrutinising the business department, said: "There are a bunch of red flags here and the government has to explain what it did to assure itself that this was all fine."
Cygnet maintains that it takes great care to adhere to UK export rules and has undergone detailed end-user checks. However, its decision to send technical drawings to Rydena before receiving full export approval raises questions about the company's compliance with regulations.
The UK government operates one of the most robust export control regimes in the world, but critics argue that it must do more to prevent British companies from inadvertently supporting Russia's war efforts.