Tougher stance against breaches of international sanctions proposed in Sweden

On 6 March 2025, the Swedish Government presented a new government bill with a new act on international sanctions (Sw. Prop. 2024/25:126 Ny lag om internationella sanktioner). Sweden has had legislation regarding enforcement of breach of sanctions for a long time but there has been scarce enforcement so far. Since Russia launched its full-scale invasion of Ukraine, the European Union (the “EU”) has imposed powerful sanctions against Russia and those supporting Russia’s war in Ukraine. Most recently, a 16th sanctions package was introduced (read our previous blog post about it here). In parallel the EU has also enacted the EU’s Sanctions Directive. Delphi has previously commented on the current Swedish Sanctions Act and the expected amendments due to the Directive – read the blog post here. The directive establishes clear minimum rules on the constituent elements of criminal acts and penalties for violations of EU’s restrictive measures. To implement the directive, the Swedish Government is now proposing a new Sanctions Act aimed at introducing more severe penalties for violations and preventing attempts to circumvent them. In this blog post, we will elaborate on the major changes.

What is new?

The Swedish act is in addition to EU sanctions intended to apply to international sanctions adopted or recommended by the United Nations, which may include all kinds of sanctions that are non-military and intended to uphold international peace and security.

The current Swedish Sanctions Act that has been in force since 1996 is being replaced with new legislation. The update is long awaited, as the current act has often been considered vague. Considering the principle of legality when dealing with criminal liability, it is of utter importance that legislation criminalising certain behavior and actions are clear and precise. According to the government bill, the new act is designed to ensure that no forms of sanctions violations fall outside the scope of criminal law.

More severe penalties and more punishable offenses

The legal consequences for breaching sanctions will become more severe, and more violations than today will be subject to criminal liability to serve as a stronger deterrent. The possible maximum imprisonment penalty for violations of normal degree is extended from two years to a maximum of three years, for instance.

The category of gross sanctions violation (Sw. grovt sanktionsbrott) already exists under the current Sanctions Act but is revised in the new act. The new act introduces factors to be particularly considered when determining what constitutes a gross violation. The proposed act emphasises the importance of evaluating whether the violation involved property of significant value, posed particular dangers, or concerned equipment with military or dual-use capabilities when determining whether a violation is gross or not.

Additionally, the new act criminalises continuous violations (Sw. upprepat sanktionsbrott), where multiple violations of the same nature will be considered one single criminal act. These two categories of violations will be subject to higher fines and longer sentences, with a new maximum prison sentence of 6 years.

Moreover, minor (Sw. ringa) violations will be punishable, which is not possible under the current Sanctions Act. Minor violations may result in penal fines or imprisonment of up to six months.

Aiding and abetting, as well as attempts will be punishable

The scope of liability is further expanded by classifying aiding and abetting and attempting to commit certain types of sanctions-related violations as criminal acts. This broadens the scope of liability and reduces the risk of circumvention by making it clear that even those who facilitate or attempt to facilitate sanctions violations can be held criminally liable, even if they do not directly commit the violation.

Corporate fines

The existing rules on corporate fines (Sw. företagsbot) will apply to sanctions-related crimes also under the new Sanctions Act. The existing rules have been deemed sufficient to meet the requirements of the EU Sanctions Directive.

A corporate fine may be rendered when a business – which includes both sole traders and legal entities – has undeniably failed to take reasonable measures to prevent an offense committed within the course of the business. Additionally, the offender should have held a leadership position, or had a specialised responsibility for overseeing or regulating the business activity. Corporate fines range from 5,000 SEK (approx. EUR 500) to 10 million SEK (approx. EUR 1 million) in general. However, for larger companies, corporate fine can be increased by a maximum of 50 times the estimated penalty value.

Reporting duties

The new act includes reporting duties for certain authorities. Such authorities shall report to the Police Authority or the Public Prosecutor’s Office if there is reason to believe that a has been committed. This includes authorities such as the Swedish Financial Supervisory Authority (Sw. Finansinspektionen), the Swedish Tax Agency (Sw. Skatteverket), the Swedish Customs Sw. Tullverket), the National Board of Trade (Sw. Kommerskollegium) and the Swedish Enforcement Authority (Sw. Kronofogden).

Concluding remarks

The new act is proposed to enter into force already on 20 May 2025, but first needs to pass the Parliament vote. Given the time constraints, companies are advised to start reviewing their supply chains and reviewing their agreements as well as compliance programs to ensure compliance with the forthcoming Swedish Sanctions Act. The new act further emphasises the importance of compliance, as potential violations will result in more severe consequences for both individuals and legal entities. Hopefully, the increased enforcement will not only impose additional burdens on companies but also serve as a meaningful step toward combating war and promoting peace. We will keep you updated on the vote in the Parliament and when the act enters into force.