Decision to allow UK exports to Armenian firm under review over Russian links
Ministers are reviewing a decision to allow a British company to export hi-tech equipment to Armenia after the Guardian uncovered links to the Russian military supply chain,Cygnet Texkimp, based in Cheshire, was weeks away from exporting two machines that produce carbon fibre “prepreg”, a lightweight material that can be used in a range of civil and military applications,Whitehall officials told Cygnet last year that it did not require a special licence for the shipment, signalling that the government’s routine vetting process for exports had raised no concerns about how the equipment could be used and by whom,But the trade minister, Chris Bryant, said he was putting the deal on ice, pending a review, over concerns that the machines could be deployed for military purposes,The material they produce can be used in the production of missiles and drones, crucial weapons in the war in Ukraine.
The decision comes after Liam Byrne, chair of the House of Commons business committee, wrote to Bryant to highlight a Guardian report outlining the links between Cygnet’s Armenian client, Rydena LLC, and the Russian military.Rydena was established two years into the full-scale invasion of Ukraine by former executives of Umatex, a Kremlin-owned company that has emerged as one of the most important suppliers to Vladimir Putin’s war machine.Experts have warned that the Rydena founders’ past involvement in the Kremlin’s military supply chain should raise concerns about whether Cygnet’s hardware could be used to supply carbon fibre to Russia, circumventing sanctions designed to turn the screw on Putin.Rydena has previously denied that it does any business with Russia or with sanctioned entities, while both it and Cygnet have said the equipment will be used for civil applications.In a letter to Byrne, Bryant confirmed that the government is reconsidering its decision to permit the export to go ahead.
Bryant said: “We are currently reviewing an earlier determination that the export was not subject to licence as the goods were not considered to be controlled (a ‘No Licence Required’ decision).”He added that the decision followed close consultation with Cygnet Texkimp, “as a result of which we have determined that some elements of the production equipment should be considered as subject to dual-use controls”.Dual-use controls cover equipment that can be used for both civil and military applications, to prevent apparently innocent export contracts being used to disguise deals for equipment that can be used in war.Cygnet said that it had consistently followed export rules and applied for a licence because it recognised that its “prepreg” machine could potentially be categorised as “dual use” but said that the government had told it that no licence was required.Bryant said the Department for Business and Trade had “reopened the licence application, which will have to be assessed before any export is permitted.
I can confirm that no export has yet taken place.”Bryant signalled Cygnet Texkimp’s 50-year history in hi-tech manufacturing, with a long record of complying with export licences and a good relationship with the Export Control Joint Unit (ECJU).The unit brings together government departments and the intelligence services to hunt for red flags raised by potential export deals.The government has so far declined to say whether the ECJU was aware of the Rydena executives’ past work for Umatex, which is disclosed on their profiles on the professional networking site LinkedIn.“You can be assured that I will continue to take a close direct interest in this case,” Bryant said.
In a subsequent evidence session with Byrne’s business select committee on Wednesday, Bryant said the government was planning to strengthen export licensing laws to improve controls on goods being diverted to Russia,A spokesperson for Cygnet Texkimp said: “At the outset of this order, we proactively engaged with the relevant UK authorities and voluntarily submitted an application for an export licence because we recognised that certain elements of the equipment, namely a prepreg machine, could potentially be categorised as ‘dual use’,“We acknowledge the UK government’s decision to review its earlier guidance that a licence was not required,We will await the outcome of this process,Cygnet Texkimp has always operated in full compliance with UK export control regulations and remains committed to maintaining an open, constructive and transparent dialogue with the relevant authorities at all times.
”
Paramount Skydance wins Warner Bros Discovery bid after Netflix walks away from deal
Paramount Skydance has beaten Netflix to take over Warner Bros Discovery’s storied Hollywood studios and streaming business after the streaming giant refused to increase its bid.The $110bn deal ends a high-stakes bidding war between the two media companies, but the takeover still faces regulatory hurdles and a backlash from critics worried about a rightward tilt in US media.David Ellison, chairman and CEO of Paramount, said: “From the very beginning, our pursuit of Warner Bros Discovery has been guided by a clear purpose: to honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company.”In a statement on Thursday evening, the Netflix co-chief executives Ted Sarandos and Greg Peters said: “At the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive.”Netflix was given four business days to beat Paramount’s revised offer but quickly decided against doing so
Rachel Reeves ‘to give go-ahead’ for £1bn military helicopter deal
Rachel Reeves is to approve a £1bn deal to build military helicopters in Yeovil, saving about 3,000 manufacturing jobs, according to reports.The chancellor is expected to sign a contract with Leonardo – the Italian owner of the former Westland factory in Yeovil, Somerset – to build the new battlefield helicopters, after months of speculation as to whether the historical site would survive.Workers had feared the company would follow through on threats to close the facility at the end of March if the government failed to place an order for new helicopters in time.Leonardo was the only bidder for the UK’s £1bn “new medium helicopter” contract that was launched in February 2024, after the US aerospace company Lockheed Martin and Europe’s Airbus pulled out.The new aircraft will replace the Royal Air Force’s ageing fleet of Puma helicopters, which had been in service since the 1970s
OpenAI announces $110bn funding round that would value firm at $840bn
OpenAI said on Friday it is raising $110bn in a blockbuster funding round that would value the ChatGPT maker at $840bn, in a deal that signals the feverish pace of investment in artificial intelligence.It’s more than double the amount the company raised last year, when it racked up $40bn in the largest private tech deal on record.This year’s funding round, which is still open, includes a $30bn investment from SoftBank, $30bn from Nvidia, and $50bn from Amazon, and comes ahead of the AI startup’s expected mega-IPO later this year. Even more investors are expected to join.“We’re super excited about this deal,” OpenAI CEO Sam Altman told CNBC on Friday
Instagram to alert parents if teens repeatedly search self-harm terms
Instagram will start alerting parents if their kids repeatedly search for terms clearly associated with suicide or self-harm.The announcement on Thursday comes as Instagram’s parent company, Meta, is in the midst of two trials over harms to children.A trial under way in Los Angeles questions whether Meta’s platforms deliberately addict and harm minors. Another in New Mexico seeks to determine whether Meta failed to protect kids from sexual exploitation on its platforms.The alerts will only go to parents who are enrolled in Instagram’s parental supervision program
Already on the plane or left at home? How England’s Rugby World Cup squad is shaping up
Steve Borthwick started the Six Nations with a settled group but the journey to Australia 2027 has suddenly become a lot more complicatedNot so long ago, Steve Borthwick’s squad for the 2027 World Cup was taking shape nicely. He picked a largely predictable 36-man group for the Six Nations and the same can be said of his matchday 23 to face Wales in England’s championship opener. Borthwick is a loyal coach who relies heavily on depth charts and the exodus of so many players to France after the last World Cup made a number of difficult decisions for him much easier. Just how tailored his squad is to the 2027 tournament is demonstrated by his refusal to pick the Bordeaux-bound Tom Willis on the basis he will not be available despite being awarded an enhanced contract last summer.Suddenly, on the back of two heavy defeats and shocking performances, things are not nearly as settled
‘I know I can do it again – 100%’: Lando Norris on proving himself against the best in F1
Briton overcame crippling self-doubt to become F1 world champion and is determined not to relinquish his crownLando Norris recalls being rendered speechless with joy when he was given his first contract with McLaren. Sitting in the cramped office of a paddock truck, the confirmation that he had made it to Formula One left him “very smiley for a long time”. Seven years on, he enters the new season having achieved his lifelong ambition of becoming world champion and is wearing an equally irrepressible grin as he sets about defending his title.Claiming the championship after a monumental season-long tussle that went to a thrilling three-way fight at the finale in Abu Dhabi was the defining moment of the 26-year-old’s career and perhaps something of a turning point.“I’m always very much in my own head and very thoughtful about myself,” he says
Winter Paralympics walks tightrope as Russia’s inclusion risks ceremony boycott
Jacks and Ahmed find dramatic late blitz to earn England unlikely win over New Zealand
England beat New Zealand by four wickets: T20 Cricket World Cup Super 8s – as it happened
Perfect pitches for historic matches | Letters
Promotion and relegation from Prem to be scrapped as rugby moves to franchise model
Cheltenham hopeful of ticket-sale turnaround for festival after three years of decline