Lafarge on Trial in Paris Over Alleged Payments to IS and Other Jihadists in Syria

Cement giant Lafarge went on trial in Paris accused of channeling millions of dollars to the Islamic State (IS) and other armed groups via its Syrian unit, Lafarge Cement Syria (LCS), to keep a northern Syria plant running during 2013–2014.

Background

Lafarge completed a $680 million cement plant in Jalabiya in 2010. As the Syrian conflict intensified after March 2011, the region around the plant became contested by multiple armed factions, including IS and Jabhat al-Nusra (then an Al-Qaeda affiliate).

Allegations and Legal Cases

French prosecutors allege that in 2013 and 2014 LCS used intermediaries and paid armed groups for raw materials, safe passage for trucks and employees, and other arrangements that kept the factory operating. Payments are said to have reached IS and other groups. Defendants include Lafarge, former CEO Bruno Lafont, five former operational and security staff members, and two Syrian intermediaries (one of whom is subject to an international arrest warrant and is not expected to appear).

Charges in France include funding of terrorism and breaches of international sanctions. If convicted on the funding charge, Lafarge could face a fine of up to $1.2 million and potentially much larger penalties for sanctions violations. The Paris trial is scheduled to run through mid-December.

Related US Case and Civil Suits

In a separate U.S. proceeding Lafarge pleaded guilty to conspiring to provide material support to foreign-designated terrorist organisations and agreed to pay a $778 million fine — the first time a corporation pleaded guilty to such an offence in the United States. U.S. authorities described arrangements that effectively benefited IS financially and helped exclude competitors.

Additionally, roughly 430 people of Yazidi background in the United States, joined by Nobel laureate Nadia Murad, have filed a civil suit alleging Lafarge's complicity in brutal attacks through a conspiracy with IS. Another French inquiry into alleged complicity in crimes against humanity remains open.

Company Response and Context

Holcim, the Swiss cement group that acquired Lafarge in 2015, has said it was unaware of the Syria dealings at the time of the takeover. Former CEO Bruno Lafont, who led Lafarge from 2007 until the 2015 merger, previously described investigations as "biased."

Wider Context

Kurdish-led forces, backed by a US-led coalition, pushed back and ultimately dismantled the IS-controlled proto-state by 2019. The allegations against Lafarge formed the basis of inquiries opened in France in 2017 after media reports and complaints from the finance ministry and NGOs alongside former LCS employees.

Note: The trial will test how companies that continued operations in conflict zones are held accountable for payments and dealings with armed groups, and may have implications for corporate conduct in future conflict settings.