UPDATE 1-Russia's X5 cleared to buy Paterson-regulator

* Acquisition not conditional on any store sale

* X5 eyes unspecified stake

(Adds more comments)

MOSCOW, Oct 27 (Reuters) - X5 Retail Group (PJPq.L: Quote, Profile, Research), Russia's largest grocer by revenue, received approval from the competition watchdog to buy smaller rival Paterson, the head of the anti-trust regulator said on Tuesday.

X5 applied for regulatory approval to buy an unspecified stake in Paterson this month, delivering on expectations of growth via acquisitions in the crisis-hit sector. [ID:nL2221851]

Igor Artemyev, head of the Anti-Monopoly Service, told reporters the acquisition would not be conditional on the sale of Paterson shops in Russia's second-biggest city of St Petersburg, where X5 is a major player -- a condition Artemyev had reportedly stated earlier.

"We received evidence that they do not have to sell anything. If their share is less than 35 (percent), then yes, let them buy," Artemyev said, adding that X5's market share in St Petersburg was diluted after overall sales turnover rose.

"With Paterson, (the market share of X5 in St Petersburg is) 30.9 percent," he said.

X5 declined immediate comment. (Reporting by Katya Golubkova and Maria Kiselyova)