Why did Lafarge continue operations in Syria after others left?

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Lafarge Continued Syrian Operations Amidst Conflict and Terrorist Activity

Lafarge SA continued to operate its Syrian cement factory in 2013 and 2014, paying nearly €13 million (RM60 million) to intermediaries during a period when other companies had already withdrawn from the country. This decision led to Lafarge SA and its former subsidiary, Lafarge Cement Syria, agreeing to plead guilty to conspiring to provide material support to designated foreign terrorist organisations. A French court previously determined that the company was aware a significant portion of these payments was financing Islamic State operations.
Financial Arrangements to Maintain Production

The company acknowledged making payments totalling close to €13 million to middlemen. These payments were intended to ensure the continued operation of its cement factory in Syria. This occurred during a critical phase of the Syrian civil war, a time when the security landscape had deteriorated significantly, prompting many international businesses to cease their activities in the region.
Awareness of Terrorist Financing

A ruling by a French court established that Lafarge SA possessed knowledge that a substantial part of the funds disbursed through these intermediaries was being channelled to finance the operations of the Islamic State. This awareness highlights a critical juncture where the company's business decisions intersected with the activities of designated terrorist groups operating within Syria.
Broader Context of Operating in Conflict Zones

Operating in conflict zones presents complex ethical and logistical challenges for multinational corporations. Such environments are often characterised by unstable political situations, breakdown of law and order, and the presence of armed groups, including terrorist organisations. The strategic and economic importance of essential industries like cement production can, in some circumstances, create incentives for companies to attempt to maintain operations, even under duress, by engaging with various local actors. However, this can involve significant risks, including inadvertent or direct support of illicit activities, as seen in this case.

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Why did Lafarge continue operations in Syria after others left?

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