The Swedish Levant Company () was a Swedish

chartered company A chartered company is an association with investors or shareholders that is incorporated and granted rights (often exclusive rights) by royal charter (or similar instrument of government) for the purpose of trade, exploration, and/or coloniz ...

founded on 20 February 1738 with the exclusive right to

trade Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. An early form of trade, barter, saw the direct excha ...

in the

Levant The Levant () is an approximate historical geographical term referring to a large area in the Eastern Mediterranean region of Western Asia. In its narrowest sense, which is in use today in archaeology and other cultural contexts, it is eq ...

for a period of ten years.

Background

Following the

surrender at Perevolochna The surrender at Perevolochna was the capitulation of almost the entire Swedish army on 30 June 1709 ( O.S.) / 1 July 1709 ( Swedish calendar) / 11 July 1709 ( N.S.). It signified the annihilation of the once formidable Swedish army after the d ...

King Charles XII Charles XII, sometimes Carl XII ( sv, Karl XII) or Carolus Rex (17 June 1682 – 30 November 1718 O.S.), was King of Sweden (including current Finland) from 1697 to 1718. He belonged to the House of Palatinate-Zweibrücken, a branch line of t ...

was exiled to

Bendery Bender (, Moldovan Cyrillic: Бендер) or Bendery (russian: Бендеры, , uk, Бендери), also known as Tighina ( ro, Tighina), is a city within the internationally recognized borders of Moldova under ''de facto'' control of the un ...

in the

Ottoman Empire The Ottoman Empire, * ; is an archaic version. The definite article forms and were synonymous * and el, Оθωμανική Αυτοκρατορία, Othōmanikē Avtokratoria, label=none * info page on book at Martin Luther University) ...

. It was during this time that Charles began to seek closer ties with the Ottomans, and Sweden's interest in the empire began to rise. The primary backer for trade with the Ottoman Empire was Swedish Board of Trade member Johan Silfvercrantz. He proposed following the example of the English Levant Company to import goods such as

silk Silk is a natural protein fiber, some forms of which can be woven into textiles. The protein fiber of silk is composed mainly of fibroin and is produced by certain insect larvae to form cocoons. The best-known silk is obtained from the coc ...

while exporting Swedish products to the region. Charles sent Silfvercrantz to the Levant to explore a future trade relationship, but he was unable to complete his work before his death the next year in 1712. In 1718, Charles died, and this marked the end of autocratic kingship in Sweden. The subsequent

Age of Liberty In Swedish and Finnish history, the Age of Liberty ( sv, frihetstiden; fi, vapauden aika) was a period that saw parliamentary governance, increasing civil rights and the decline of the Swedish Empire that began with Charles XII's death in 1718 ...

saw a shift of power from the crown to the

Riksdag of the Estates Riksdag of the Estates ( sv, Riksens ständer; informally sv, Ståndsriksdagen) was the name used for the Estates of Sweden when they were assembled. Until its dissolution in 1866, the institution was the highest authority in Sweden next to t ...

. It was at this time that Sweden had ambitions to expand its influence in the

Mediterranean The Mediterranean Sea is a sea connected to the Atlantic Ocean, surrounded by the Mediterranean Basin and almost completely enclosed by land: on the north by Western and Southern Europe and Anatolia, on the south by North Africa, and on the e ...

. In 1737, a

trade agreement A trade agreement (also known as trade pact) is a wide-ranging taxes, tariff and trade treaty that often includes investment guarantees. It exists when two or more countries agree on terms that help them trade with each other. The most common tr ...

between the Ottomans and Sweden was signed. A direct result of the treaty was the formation of the Swedish Levant Company.Müller, Leos (2007)
"Swedish consular reports as a source of business information 1700-1800"
(Report). ''Information flows: new approaches in the historical study of business information.'' Helsinki: SKS, Finnish Literature Society. pp. 255–274. . Retrieved 13 May 2019.

Founding

The establishment of the company was a controversial issue. Major issues included which powers the Riksdag should grant the company. Members of the

Hat Party The Hats ( sv, hattarna) were a Swedish political faction active during the Age of Liberty (1719–1772). Their name derives from the tricorne hat worn by officers and gentlemen. They vied for power with the opposing Caps party. The Hats, who rul ...

generally argued for the English Levant Company structure, but this strategy was criticized by some merchants who favored a freer

Dutch Dutch commonly refers to: * Something of, from, or related to the Netherlands * Dutch people () * Dutch language () Dutch may also refer to: Places * Dutch, West Virginia, a community in the United States * Pennsylvania Dutch Country People E ...

method while trading with the Ottomans. The results saw a compromise between the parties. The Swedish Levant Company had tax-free status for its exports, and it was granted

duty A duty (from "due" meaning "that which is owing"; fro, deu, did, past participle of ''devoir''; la, debere, debitum, whence "debt") is a commitment or expectation to perform some action in general or if certain circumstances arise. A duty may ...

-free status for all goods imported from the Levant coast. These imported goods would then be moved to auction for sale. It was not granted a full monopoly on Mediterranean trade but instead limited to the Levantine coast. Additionally, private merchants could apply for a trading license from the company to conduct concurrent business. It had a starting capital of 200,000 '. The two major shareholders of the company were and . Unlike the earlier-formed

Swedish East India Company The Swedish East India Company ( sv, Svenska Ostindiska Companiet or ''SOIC'') was founded in Gothenburg, Sweden, in 1731 for the purpose of conducting trade with China and the Far East. The venture was inspired by the success of the Dutch East ...

, investment was limited to Swedish merchants only.

Trade

Sweden had hoped to conduct a profitable trade with the Ottomans whereby it could export iron and naval ammunition to

Southern Europe Southern Europe is the southern regions of Europe, region of Europe. It is also known as Mediterranean Europe, as its geography is essentially marked by the Mediterranean Sea. Definitions of Southern Europe include some or all of these countrie ...

. In return, luxury goods would be imported into the country.

Closure

The board of directors petitioned the Riksdag for the renewal of its charter, which was granted for an additional 10 years, until 15 January 1748. However, the trading company saw the profits from its primary activity begin to languish. The in 1752 made recommendations to the

Privy Council A privy council is a body that advises the head of state of a state, typically, but not always, in the context of a monarchic government. The word "privy" means "private" or "secret"; thus, a privy council was originally a committee of the mon ...

for the Riksdag to take additional measures to increase Levantine trade. This effort, however, failed; the company charter was officially revoked in 1756.

References

{{Swedish colonies 1738 establishments in Sweden Trading companies Chartered companies Defunct companies of Sweden Trading companies of Sweden Trading companies established in the 18th century