BREAKING NEWS: The Courts Verdict - no Swedish tobacco license for HABANOS

The Administrative Court in Gothenburg has ruled in favor of the municipality regarding Elite Trading Scandinavia’s tobacco license, stating that the irregularities are so severe that a mere warning is not considered sufficient.

Published: 2026-06-15 11:58 Writer: AI. 

We use AI and Google Translate for translations, with some review to enhance readability. Pardon the Spanglish.

Disclaimer: Cigarrvärlden is owned and operated by Cigarrklubben CK Sverige AB, which also operates a cigar club and has a foot in both camps. To put it mildly. Divison and separation of operations and the editorial is explained under the section "Conflicts of Interest (in Swedish)". Cigarrvärlden operates under a ‘certificate of no legal impediment to publication conferring constitutional protection’ (utgivningsbevis). With this certificate, Cigarrvärlden enjoys a special legal status in Swedish law under the freedom of expression act. 

Cigarrvärlden was previously the first to establish a documented link between Chen Zhi and the Cuban tobacco monopoly—and thus also the Swedish subsidiary Habanos Nordic, now known as Elite Trading Scandinavia—in several prior investigations. Shortly after Cigarrvärlden’s investigation, Chen Zhi was indicted by the U.S. Department of Justice (D.O.J.). On December 15, 2025, the City of Gothenburg revoked Elite Trading Scandinavia's tobacco license due to its ties to Chen Zhi. The revocation was appealed to the Administrative Court in Gothenburg, which handed down its judgment on June 10 this year. The Administrative Court sided with the municipality and dismissed the appeal.

The Administrative Court's Assessment.

When it comes to companies, the suitability assessment must, among other things, include shareholders with significant holdings who are thereby deemed to have influence over the company, or with whom the company has a relationship of dependency. The investigation in the case shows that Chen Zhi was registered as the ultimate beneficial owner (UBO) of Elite Trading Scandinavia AB until December 2, 2025, and that he owned a significant portion of the company through several other entities. Elite Trading Scandinavia AB has argued that it has terminated all connections that could grant Chen Zhi actual control, and has, among other things, ensured that no ownership, contractual, or financial ties remain.

However, according to the court, there is no supporting evidence for Elite Trading Scandinavia’s claim, nor has Elite Trading Scandinavia explained why such documentation could not be presented. In this regard, the court also notes that Elite Trading Scandinavia’s de-registration of Chen Zhi from the beneficial ownership register was, according to an email sent to the municipality on December 10, 2025, based on a reassessment of who constitutes a beneficial owner in Elite Trading Scandinavia, rather than actual changes within Elite Trading Scandinavia.

Furthermore, the fact that Chen Zhi has been de-registered as the beneficial owner cannot be taken as proof that he exercises no influence over the company, as registration in itself does not require an actual vetting of the information reported by Elite Trading Scandinavia. The Administrative Court therefore assesses that the municipality's investigation supports the conclusion that Chen Zhi continues to own a significant portion of Elite Trading Scandinavia, and that his role in the company is such that the suitability assessment must include him as well.

The investigation in the case shows that the United States District Court for the Eastern District of New York has indicted Chen Zhi for leading a global network involved in crypto fraud, human trafficking, corruption, and money laundering. These are, therefore, extremely serious allegations relevant to his suitability to be involved in the company. Against this background, it has been of the utmost importance to further investigate Chen Zhi’s suitability. From May 2025 until the decision in December 2025, the municipality repeatedly requested documentation regarding Chen Zhi’s suitability. However, no such documentation was submitted, and a suitability assessment of him could therefore not be conducted.

Even taking into account what Elite Trading Scandinavia has stated regarding the difficulties of gaining access to relevant documents from Chen Zhi’s home country, the Administrative Court assesses that the investigation shows that relevant documentation was available to access. That Elite Trading Scandinavia failed to submit such documentation is therefore remarkable, and has meant that the necessary assessment to determine whether the company meets the suitability requirements to operate the licensed business could not be carried out. In light of what has emerged from the investigation in the case, the Administrative Court assesses that Elite Trading Scandinavia is not suitable to operate the licensed business. The deficiency is of such a nature that a warning cannot be considered a sufficiently interventionist measure.

The Future.

Elite Trading Scandinavia may continue to sell cigars until the judgment becomes legally binding. In this matter, Elite Trading Scandinavia is deemed to have been served on June 26, and the judgment must be appealed by July 17 at the latest; if no appeal is made, it will become legally binding, at which point tobacco sales must cease.

Footnote: Cigarrvärlden are seeking representatives of Elite Trading Scandinavia AB for a comment.

Read our coverage about the development of Cuban cigars in Sweden:

12 September 2025 - Cuban Cigars And Their Asian Partners – Slave Trade, Fraud And Money Laundering. Under The Nose Of The Regulatory Agency In Gothenburg, Sweden.

25 October 2025 - DOJ Tightens Noose On Owner Behind Cuban Cigar Giant

26 October 2025 - Prince Groups latest rebuttal published in full

4 November 2025 - Swedish Habanos Importer gets Reprieve to present Chen Zhi's Cambodian tax and criminal records

9 November 2025 - Klarna blacklists Cuba and freezes payments to Swedish cigar dealers?

12 December 2025 - Chen Zhi to be removed from Habanos

7 January 2026 - Breaking News: Habanos Swedens tobacco license revoked

12 January 2026 - Analysis: What are the future prospects for Chen Zhi, Habanos in Sweden & globally?

2 June 2026: The International Crackdown on Habanos: Swedish Distributor Faces Independent Turmoil

5 June 2026 - Cuban Cigars Facing Potential EU Ban Amid Forced Labor Reports

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