Political risk for multi-billion kronor deals

Five deals worth SKr 2.9 billion were struck with Iranian partners during the Swedish delegation’s visit to Iran at the weekend. Scania, led by CEO Henrik Henriksson, signed two new agreements for a total of 1,350 buses. Henriksson described their relationship with Iranian partner, Mammut, as a way of “spreading the Swedish model”.

However the political risks for those investing in the country are high. The business climate is nervous, not least because of Donald Trump and American sanctions.

Karsten Stroyberg, who is responsible for Danske Bank in the region, the only bank apart from SEB that helps Swedish companies in Iran, says, “It is very complicated and very limited… You cannot have any Americans in the company, you cannot have any American dollars or companies in the agreement.”

Sweden keen to step up pressure on Putin

Swedish Prime Minister Stefan Löfven will land in Kiev later today for talks with Ukraine’s President Petro Poroshenko and Prime Minister Arseniy Yatseenyuk. He will also meet the leader of the Crimean Tatar community in order to highlight the fact that Sweden does not accept Russia’s annexation of Crimea.

During his day-long visit, Mr Löfven will sign a bilateral agreement to boost reform but much of the Swedish PM’s day will be spent discussing the situation in Eastern Ukraine and what EU member states can do to put pressure on Russia to establish a permanent ceasefire.

Mr Löfven will present the findings of his meeting in Kiev when EU heads of state and government meet next week to discuss Russia and Ukraine. Despite pressure from some members to ease or drop sanctions, the EU is currently united in its stance to maintain sanctions against Russia. Sweden’s stance is that the sanctions should remain in place as long as there are no tangible signs that the situation in Eastern Ukraine is improving. Sweden also believes that member states should be prepared to ratchet up pressure on Russia, with further sanctions.