STOCKHOLM, Nov 5 (Reuters) - A plan by Russian-German consortium Nord Stream to build a gas pipeline under the Baltic Sea cleared one of its final hurdles on Thursday as Sweden signed off on construction across Swedish waters.

Sweden had been assessing the environmental impact on the Baltic Sea. Denmark has already given its approval and the Finnish government is scheduled to hold a news conference at 1130 GMT on whether to permit construction in its waters.

That would still leave Germany to rule on the matter. Russian Prime Minister Vladimir Putin has in the past threatened to scrap the Nord Stream project if it were delayed by European governments.

The European Union depends heavily on Russian gas supplies and the issue has become all the more acute due to tensions between Russia and Ukraine, which pipes vast amounts of Russian supplies to Europe.

A standoff between Russia and Ukraine late last year led to supply disruptions and European officials remain concerned that a dispute could again erupt this year.

'Sweden gives permission for Nord Stream to lay 2 pipes on the continental shelf within the Swedish economic zone in Baltic Sea for the transport of natural gas,' the government said in a statement.

CONSTRUCTION NEXT YEAR

Denmark became the first country to clear the construction of the pipeline through its waters on Oct. 20.

The Nord Stream natural gas group, which comprises Russia's Gazprom, Germany's BASF and E.ON, wants to build a pipeline from Russia to Germany under the Baltic Sea. It has said construction would begin in 2010.

Sweden said Nord Stream had agreed on a number of conditions to ensure that the project met environmental requirements both during and after construction.

'There are now several terms and commitments from the company to safeguard the Baltic Sea's environment, fishing and shipping,' Environment Minister Andreas Carlgren said.

'According to national authorities the impact on the Baltic Sea's environment is very limited and only prevalent for a short while in connection with the construction work.'

(Reporting by Simon Johnson; writing by Niklas Pollard; Editing by Toby Chopra) Keywords: NORDSTREAM/SWEDEN

(niklas.pollard@reuters.com; +46 8 700 1110, Reuters messaging: niklas.pollard.reuters.com@reuters.net)

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