Russian state arms maker to sell plant to bypass Western sanctions

MOSCOW (Reuters) - Russia's Rostec, a state-owned conglomerate hit by Western sanctions over Ukraine, will sell a small arms factory to a businessman who is not blacklisted to allow further sales to Europe and the United States, officials and sources said.

The European Union and the United States targeted Rostec and its head Sergei Chemezov in sanctions over Russia's role in Ukraine where the West accuses Moscow of fanning separatist unrest and arming rebels.