Committee publication · Correspondence · 24 February 2026
Letter from the Minister of State for Trade relating to the export licence granted to Cygnet Texkimp, 23 February 2026
From: Business and Trade Sub-Committee on Economic Security, Arms and Export Controls
Inquiry: The UK's trade sanctions regime
Summary
Minister of State for Trade Sir Chris Bryant responds to the Business and Trade Committee's February 9 letter regarding export licensing risks to Armenia and potential diversion to Russia. He confirms that the Department is reviewing an earlier 'No Licence Required' decision for Cygnet Texkimp's carbon fibre production machinery export to Armenia, having determined some equipment should be subject to dual-use controls. No export has occurred. The government emphasizes its comprehensive circumvention guidance, sanctions enforcement mechanisms, and imminent secondary legislation on end-use controls.
Key findings
- The Department is reviewing its earlier determination that Cygnet Texkimp's carbon fibre production equipment was not controlled; some elements have now been classified as dual-use goods requiring licence assessment.
- Government has published enhanced guidance since early 2025 on at-risk goods exports to third countries, including Armenia, going further than partner countries' guidance.
- New secondary legislation on sanctions end-use controls will shortly be laid, extending controls to goods not previously subject to export restrictions where diversion risk to Russia is identified.
- Licence applications are assessed against Strategic Export Licensing Criteria including Criterion 7 (diversion risk to undesirable end users); applications with uncertain end use where Russia diversion risk exists are minded for refusal unless exporters provide signed undertakings.
- Recent enforcement includes a company director receiving a substantial prison sentence for attempting to export military equipment without licence; the government reserves the right to review and amend licence decisions if new information emerges.
Tone
FactualTopics
Key actors
Sir Chris Bryant MP, Liam Byrne MP, Cygnet Texkimp, Export Control Joint Unit (ECJU), Department for Business and Trade, HMRC
Notable line
“Licence applications are assessed case by case, and not granted where we determine an unacceptable risk exists.”
Key Quotes
“… we take the risk of potential diversion of sanctioned equipment to Russia through third countries very seriously.”
“… in the case of this particular application – for the export of carbon fibre production machinery to a customer in Armenia – we are currently reviewing an earlier determination that the export was not subject to licence as the goods were not considered to be controlled”
“… some elements of the production equipment should be considered as subject to dual-use controls. It means we have re-opened the licence application, which will have to be assessed before any export is permitted. I can confirm that no export has yet taken place.”
“This guidance goes further than that provided by any partner countries – providing a unique resource to support UK exporters ' due diligence.”
“Our sanctions have constrained – and we are committed that they continue to constrain – Russia's access to the technology, revenues and expertise it needs to prosecute its campaign of illegal war in Ukraine.”
Source · parliament.uk record ↗