# Persian Winemaker Receives Million-Kronor Damages from Swedish State State settles with entrepreneur after illegal ban on traditional wine production operations. - **Source:** [SVT Nyheter](https://www.svt.se/nyheter) - **Published:** 2026-11-11 - **Topic:** [politics](https://brifing.si/c/politics) - **Original article:** - **On Brifing:** https://brifing.si/s/5d80e722-e734-4009-8dd4-601169479265 ## State Settlement Reached The Swedish state has agreed to pay 1,238,406 kronor in damages to winemaker Shahram Soltani. This settlement follows a lengthy legal dispute regarding his production of traditional Persian wine in Gemla. The compensation aims to cover financial losses incurred after the National Food Agency issued an incorrect prohibition against his business operations. ## Regulatory Conflict Origins In October 2023, the National Food Agency, Livsmedelsverket, ordered the closure of Soltani’s business. The agency claimed his products violated EU labeling regulations, asserting they could not be marketed as wine or any other beverage. This decision effectively halted all production activities, forcing the entrepreneur to seek legal recourse to protect his livelihood. ## Court Overturns Agency Decision Soltani challenged the agency’s prohibition with support from the organization Centrum för rättvisa. The Administrative Court reviewed the case and determined that the National Food Agency’s decision was legally unfounded. This ruling confirmed that the regulatory action taken against the winemaker was unlawful, clearing the path for his subsequent claim for financial damages. ## Initial Rejection of Claims Following the court victory, Soltani initially approached the Chancellor of Justice to request compensation for the damages caused by the agency's illegal decision. The request was initially denied, prolonging the legal battle. This rejection necessitated further negotiations between the parties to address the significant economic impact caused by the state's regulatory error. ## Final Agreement Terms After continued legal processes, both parties reached a formal settlement agreement. The state is now obligated to pay the total sum of 1,238,406 kronor to Soltani’s company within a four-week period. This resolution marks the end of the conflict, allowing the entrepreneur to move forward and focus on his business operations once again. ## Entrepreneurial Relief Expressed Shahram Soltani expressed immense relief following the conclusion of the dispute. In a press release issued by Centrum för rättvisa, he emphasized the difficulty of the long process he endured. He stated that he is now looking forward to putting the legal struggle behind him and dedicating his full attention to his company. ## Broader Regulatory Implications The case highlights the potential consequences when government agencies misinterpret EU labeling standards. By forcing a business to close based on incorrect legal grounds, the state incurred liability for the resulting financial harm. This outcome serves as a reminder of the importance of judicial oversight in checking the power of administrative regulatory bodies. ## Future Business Outlook With the compensation secured, Soltani can now stabilize his business finances after the forced hiatus. The resolution provides a clear conclusion to the 2023 conflict, though the incident underscores the challenges small producers face when navigating complex labeling laws. The focus now shifts to resuming production and re-establishing his presence in the market. ## Sources covering this story - https://www.svt.se/nyheter/lokalt/smaland/persisk-vinmakare-far-miljonbelopp-i-skadestand-av-staten — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._