Pour the sherry over the raisins and let it steep, during which time peel the shallots.
Bring 250 ml of water with olive oil, tomato paste, powdered sugar and sherry vinegar to the boil. Bring to the boil for about 10 minutes, then season with paprika powder, salt and pepper. Now mix in the shallots, raisins and sherry and let simmer covered for approx. 45 minutes.