SWEDEN Law and Practice Contributed by: Anders Leissner, Martin Johansson, Isak Lefvert and Imola Szanto, Advokatfirman Vinge KB
1.2 Key Trends Legislative Strengthening and Criminalisation The foremost trend has been the overhaul of Sweden’s sanctions enforcement framework through the new Swedish Sanctions Act. By raising maximum penal - ties, eliminating fines as a sentencing option, crimi - nalising ancillary forms of participation and imposing reporting duties on agencies, the legislation signals a clear shift towards treating sanctions violations as serious criminal conduct. Escalating EU Measures Against Russia The continued adoption of sanctions packages – four in the space of roughly a year – reflects an accelera - tion of EU restrictive measures against Russia. Key focal points have included countering the Russian shadow fleet (with port-access bans now extending to over 790 vessels), restricting energy trade (notably the LNG import embargo and lowered oil price cap) and limiting financial channels through transaction bans and payment system restrictions. Broadening of Russia Sanctions Beyond Russia The expansion of EU restrictive measures against Iran – including listings for military support to Russia and Russian sanctions circumvention – illustrates a wid - ening of the sanctions agenda beyond the Ukraine conflict. Similar “secondary sanctions” have been imposed against actors in Central Asia, China and Thailand, among others. Heightened Domestic Enforcement The Kubal investigation and the arrest of senior executives (see 1.1 Sanctions Market ) indicates an increased ambition to enforce sanctions and to pursue high-profile, complex cases, signalling that corporate actors face genuine prosecution risk. The boardings of multiple suspected shadow fleet vessels in Swed - ish territorial waters and the application of new insur - ance verification requirements for transiting ships also underscore a more proactive maritime enforcement by Sweden, which aligns with broader EU and member state efforts to disrupt the illicit transportation net - works sustaining Russian oil exports. Judicial Clarification of Asset Freeze Scope The CJEU’s 2026 rulings in Cases C-483/23 T Trust and C-84/24 EM SYSTEM have clarified the scope of
the asset freeze provisions in EU sanctions regimes, endorsing a broad, functional interpretation of the notion of “control”. In the T Trust case, the Court con - firmed that trust assets may fall within the scope of asset freezes where the listed person retains de facto influence over the trust’s assets or trustee decisions. In the EM SYSTEM case, the Court affirmed that a 50% capital stake creates a presumption of control over the subsidiary’s assets, which is why a subsidi - ary’s assets may be frozen on behalf of a listed parent even if the subsidiary is not designated. However, the Court stressed that this presumption must be rebut - table and is subject to judicial review. These two cases are important decisions providing essential clarifica - tion on the notion of “control” under EU sanctions law. 1.3 Key Industries A large share of Swedish trade passes through the Swedish shipping industry, meaning this industry is particularly affected by the multiple EU sanctions directed at trade. Moreover, Sweden has a compara - tively large industrial output, with several global actors based in the country, making sanctions compliance essential, as multiple industrial goods are caught primarily by EU sanctions against Russia. The same applies to actors within Sweden’s large mining and Sweden does not adopt or issue autonomous nation - al sanctions. The restrictive measures applicable in Sweden are exclusively those adopted by the Euro - pean Union and the United Nations. EU sanctions are directly applicable in Sweden without the need for fur - ther domestic transposition, with limited exceptions. UN sanctions, together with other binding obligations arising under public international law, are given effect through the legislative mechanism set out in Sections 15–17 of Act (2025:327) on International Sanctions (the Swedish Sanctions Act). forestry sectors. 1.4 Overview 1.4.1 Types of Sanctions At present, Sweden is bound by approximately 40 distinct sanctions regimes, encompassing 29 geo - graphical sanctions as well as thematic programmes that address human rights abuses, cyber-attacks, chemical weapons proliferation and terrorism. The most extensive sanctions programmes currently in
239 CHAMBERS.COM
Powered by FlippingBook