Officials in Karlshamn in southern Sweden will allow Russia's Gazprom to use the city's port for the construction of its Nord Stream 2 gas pipeline after the government dropped its objections, the municipality said on Tuesday.
The government had earlier expressed concerns about Gazprom's plans to use the port, but said on Monday the project did not threaten defense interests.
Late last year, the island of Gotland rejected a similar deal to support the construction of the pipeline after the government expressed worries about national security.
Both the Baltic Sea harbours at Karlshamn and Slite, Gotland, are situated in strategically sensitive areas, with Karlshamn around 50 kilometres from the large naval base at Karlskrona.
(Reporting by Johan Sennero and Niklas Pollard; editing by Alistair Scrutton)