Lafarge to Stand Trial in France for Alleged Terror Financing in Syria

Lafarge, a subsidiary of the Swiss-listed cement giant Holcim, is set to face trial in a French court over allegations that it financed terrorism and violated European sanctions to keep a facility operational in Syria, according to France‘s anti-terrorism prosecutor. This case marks one of the most extensive corporate criminal proceedings in recent French legal history since the investigation began in 2016.

Investigative judges in Paris issued the order for Lafarge to stand trial on Wednesday. In response, Lafarge issued a statement acknowledging the decision made by the investigating judges, as reported by Reuters.

The development caused a reaction in the stock market, with Holcim shares initially dropping nearly 2% in late trading on Wednesday before managing a slight recovery, ending the day 0.7% lower. This financial volatility highlights the significance of the trial for Holcim, which acquired Lafarge in 2015.

Central to the ongoing investigation is the allegation that Lafarge was complicit in crimes against humanity. The anti-corruption group Sherpa, which filed the criminal complaint, emphasized that the investigation is exploring the company’s efforts to maintain operations at its Syrian plant despite the onset of war in 2011.

The charges Lafarge faces include accusations of breaching European sanctions prohibiting financial or commercial relationships with Islamist militant groups such as Islamic State and Al-Nusra Front, as outlined by Sherpa.

Further complicating Lafarge’s legal challenges, the company’s request to drop certain charges was denied by France’s highest court in January of the current year.

Parallel to the French proceedings, a separate U.S. investigation concluded in 2022. This inquiry revealed that Lafarge’s Syrian subsidiary made payments to groups designated by the United States as terrorists, including the Islamic State, in an effort to protect its staff amid Syria’s prolonged civil war, as per U.S. government findings.