Flower arranging embargo introduced by Swedish institution (7)
I believe the answer is:
ikebana
'flower arranging' is the definition.
(Japanese method of flower arranging)
'embargo introduced by swedish institution' is the wordplay.
'embargo' becomes 'ban' (a ban on trade).
'introduced by' is an insertion indicator (some letters introduce others into them).
'swedish institution' becomes 'ikea' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'ban' placed within 'ikea' is 'IKEBANA'.
Can you help me to learn more?
(Other definitions for ikebana that I've seen before include "Art of Japanese flower arrangement" , "craft" , "Flower arranging; In a bake (anag.)" , "arrangement of flowers" , "exhibiting array of bloomers" .)