Committee publication · Correspondence · 24 February 2026

Letter to the Minister of State for Trade relating to the export licence granted to Cygnet Texkimp, 9 February 2026

From: Business and Trade Sub-Committee on Economic Security, Arms and Export Controls

Inquiry: The UK's trade sanctions regime

Summary

The Business and Trade Sub-Committee on Economic Security, Arms and Export Controls writes to the Minister of State for Trade on 9 February 2026, raising concerns about a UK export licence granted to Cygnet Texkimp for carbon fibre machinery destined for an Armenian firm allegedly linked to a Russian entity. The letter requests detailed information about government due diligence procedures, risk assessment criteria, and whether ministers were involved in the licensing decision.

Key findings

Cygnet Texkimp was granted an export licence to ship carbon fibre machinery to Armenian firm Rydena, which is alleged to have links to Russian entity Umatex
Government guidance identifies Armenia as a country where businesses should conduct enhanced due diligence due to diversion risk to Russia
Committee questions whether government was aware of Rydena's links to Umatex when issuing the licence and, if so, what basis justified approval
Committee seeks clarification on why criterion 7 (risk of diversion) under Strategic Export Licensing Criteria is discretionary rather than mandatory, and what risk thresholds apply
Committee questions post-shipment verification procedures and government action when diversion is discovered, given reliance on signed end-user undertakings

Tone

Critical

Topics

export-controlssanctions-evasionrussiastrategic-trade

Key actors

Liam Byrne MP, Chris Bryant MP, Cygnet Texkimp, Rydena, Umatex, Department for Business and Trade, ECJU, Ministers Falconer

Notable line

“I am sure you will understand, and share, my deep concern about the possibility of British exports being div erted to support Russia's war effort.”

Key Quotes

“I am sure you will understand, and share, my deep concern about the possibility of British exports being div erted to support Russia's war effort.”
— Liam Byrne MP · Opening concern about the Cygnet Texkimp licence

“Armenia is among the countries for which businesses "should consider conducting enhanced due diligence" due to the risk of exports being diverted to Russia.”
— Liam Byrne MP · Citing government's own guidance on Armenian diversion risks

“… the existence of the signed undertaking does not mean that our due diligence stops”
— Liam Byrne MP · Referencing government's earlier statement on end-user verification procedures

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Source · parliament.uk record ↗