ZURICH—Switzerland looks set to loosen arms-export rules to allow sales to countries embroiled in civil wars despite a newspaper report that Swiss-made hand grenades probably made their way into the hands of militants in Syria.
State arms maker RUAG Holding acknowledged that grenades it sold to the United Arab Emirates 15 years ago likely found their way to the militants after the report by SonntagsBlick. The newspaper reported on Sept. 2 that members of the ISIS terrorist group were hoarding RUAG-made hand grenades in Syria, based on photographs of weapons seized from fighters.