International sanctions

International sanctions are an increasingly common security policy tool that directly affects Swedish companies' ability to enter into agreements, collaborate and do business internationally. Currently, sanctions are in place against approximately 50 states and groups, which means that many business relationships require careful monitoring and risk assessment. It is crucial for companies to understand what restrictions apply and how they are applied in practice.

What are sanctions and sanctions rules?

Sanctions here refer to restrictive measures relating to cross-border trade that apply in Sweden and have been decided by the UN or the EU. Sanctions rules govern and influence how Swedish companies may act towards individuals, companies or states that are subject to sanctions. Common sanctions include arms embargoes, financial sanctions such as trade bans or asset freezes, and bans or licensing requirements on the export or import of certain technologies and goods.

What do sanctions rules mean for your business?

All Swedish companies need to consider and comply with the sanctions rules, both in their domestic operations and in international business relationships. Companies have an obligation to check that a trading partner is not subject to sanctions rules before completing the intended financial transaction. Companies also have an obligation to check whether their products are subject to restrictions when exporting to operators in other countries.

What procedures should be in place?

It is important that sanctions compliance permeates the entire organisation. This can be achieved through training and internal policy work. Companies also need to establish procedures for checking their business partners to ensure that they are not subject to sanctions (known as "due diligence"). This is particularly important when the business partner is established in a country that is typically subject to sanctions, such as Russia, Belarus or Iran. As sanctions lists change and even existing business partners may become subject to sanctions, checks need to be followed up regularly. All documentation of checks carried out should be stored systematically, both to demonstrate compliance in the event of an inspection and to have a basis for reference should questions arise in the future.

Consequences of violations

Violations of the sanctions rules can lead to fines, but also to criminal penalties for responsible persons within the organisation. In addition to the direct legal consequences, the company risks its brand and reputation, which can be significantly more costly than the administrative sanctions. Being identified as a company that has violated sanctions rules can lead to lost business opportunities, reduced access to capital and deteriorated relationships with business partners.

How our experts can help you

Companies working with sensitive technology or sensitive products are often also subject to other security regulations, such as investment control rules (UDI/FDI Act), export control rules and cybersecurity rules.

With solid experience and strategic advice, we help our clients establish the necessary processes in a practical manner tailored to their specific business. We help you navigate sanctions regulations and identify other relevant regulations, and ensure that your agreements, procedures and documentation meet all applicable requirements.

Ensure your compliance – now and in the future

Compliance is not just an obligation – it is an investment in security and long-term business success. By ensuring that applicable requirements are met, you reduce the risk of penalties and create the conditions for sustainable growth. At the same time, compliance contributes to a larger context: strengthening national and international security in an increasingly complex geopolitical reality.

These requirements are expected to increase rather than decrease. It is therefore essential to ensure compliance at an early stage and establish appropriate procedures.