Court declares cement giant, Lafarge guilty of terrorism financing

A French court has found cement manufacturer, Lafarge, guilty of financing terrorist groups through its Syrian subsidiary during the country’s civil war.

The ruling, delivered in Paris on Monday, also convicted eight former employees of the company, including senior executives, over their roles in the illicit payments.

The court determined that Lafarge paid approximately $6.53 million to jihadist groups, including Islamic State and the al-Qaeda-affiliated Nusra Front, between 2013 and September 2014.

Presiding judge Isabelle Prévost-Desprez said the payments enabled the groups to strengthen their operations and carry out attacks within and beyond Syria.

“It is clear to the court that the sole purpose of the funding… was to keep the Syrian plant running for economic reasons,” the judge said, adding that the arrangement amounted to a form of “commercial partnership” with the militants.

The payments were linked to Lafarge’s operations at its Jalabiya cement plant in northern Syria, which the company acquired in 2008 and began operating in 2010, shortly before the outbreak of the Syrian conflict.

According to prosecutors, part of the funds—over €800,000—was used to secure safe passage for employees traveling through مناطق controlled by armed groups. An additional €1.6 million was paid to purchase raw materials from quarries under the control of ISIS.

Holcim, which merged with Lafarge in 2015, has yet to issue an official response to the ruling.

The case marks the first time a company has been convicted in France for financing terrorism.

Prosecutors had requested a €1.13 million fine and the confiscation of assets worth up to €30 million, the maximum penalty allowed. However, the court has yet to announce the final sentence.

In a related case in the United States, Lafarge in 2022 admitted that its Syrian subsidiary made payments to terrorist groups to maintain operations during the conflict. The company agreed to pay $778 million in fines and forfeitures as part of a plea deal.

The ruling is expected to have far-reaching implications for multinational corporations operating in conflict zones, particularly regarding compliance with international sanctions and anti-terrorism financing laws.