UK Export Licence for Armenia Firm with Russian Ties Sparks Sanctions Alarm
Following Vladimir Putin's full-scale invasion of Ukraine, which prompted widespread sanctions from the EU, US, UK, and other nations, concerns have been raised over a British company's contract to export advanced machinery to Armenia. Experts are sounding the alarm that this multimillion-pound deal could inadvertently support Russia's war machine, questioning the robustness of UK export controls designed to prevent such scenarios.
Government Urged to Re-examine Cygnet Texkimp's Export Approval
The government has been called upon to re-evaluate the export licence granted to Cygnet Texkimp, an engineering firm based in Northwich, Cheshire. This comes after the Guardian uncovered links between the Armenian recipient company, Rydena LLC, and the supply chain for Russia's military operations. Cygnet Texkimp manufactures machines that produce carbon fibre "prepreg," a lightweight, durable material with both civil and military applications, including in aerospace and defence sectors.
Rydena LLC was established two years into Russia's invasion of Ukraine by former executives of Umatex, a Russian company sanctioned by the US and UK for its role as a key supplier to the Kremlin's war effort. Umatex is Russia's largest producer of carbon fibre, described by US authorities as "critical" for weaponry such as aircraft, drones, and ballistic missiles. Olena Yurchenko of the Economic Security Council of Ukraine emphasised that this material is "indispensable" for reducing weight and increasing heat resistance in military equipment.
Links to Sanctioned Russian Firm Raise Red Flags
Rydena's leadership includes Dmitry Kogan, former second-in-command at Umatex, who left the company in January 2023 and founded Rydena in Yerevan, Armenia. Other senior ex-Umatex executives involved are Alexander Shleynikov, now CFO, and Aleksandr Ilichev, a composites scientist. Armenia has been identified in government reports as a hub used by Moscow to procure military equipment indirectly, circumventing Western sanctions.
Despite Rydena's claims that it does no business with Russian clients and focuses on civilian sectors like aerospace and automotive, corporate filings show Kogan and Shleynikov listed Moscow addresses for a related Cypriot company. Yurchenko warned that anyone with senior roles at Umatex was "a player in the Russian war machine," highlighting the risk of equipment diversion to Russia.
Export Controls and End-User Undertakings Questioned
Cygnet Texkimp stated it undertook detailed end-user checks and received full export approval from the UK government, with Rydena providing a certificate of undertaking against military use. However, sanctions expert Anna Bradshaw expressed concern, noting that such undertakings offer limited protection against diversion. "There is a clear diversion risk," she said, adding that if breached, "the ship has sailed." Cygnet has already sent technical drawings to Rydena and plans to provide manuals in Russian, a common language in Armenian industry.
The contract, worth over £4 million, was accepted in February 2025, with export expected by April or early May. Liam Byrne MP, chair of the House of Commons business committee, described the situation as having "a bunch of red flags" and plans to write to the Department for Business and Trade (DBT) to inquire about awareness of Rydena's Umatex links. The DBT declined to comment on specific investigations but affirmed the UK's robust export control regime and sanctions against Russia.
Company Background and Political Connections
Cygnet Texkimp, an export-led business with clients like McLaren, reported sales of £18.7 million last year and was mentioned in the government's industrial strategy. Its owner, Matthew Kimpton-Smith, a devout Christian who survived a cardiac arrest in 2016, donated £2,500 to the Conservative party in 2017 via his local MP, Esther McVey. The company maintains it adheres strictly to export rules and has engaged proactively with UK officials on control matters.
In response to queries, Cygnet reiterated its compliance with export controls, while Rydena insisted its machinery is for civilian use only and denied any ties to sanctioned entities. As the export nears, experts continue to urge vigilance to prevent unwitting support for Russia's war in Ukraine.
