Russia's Novatek has asked the government to grant its key Yamal LNG project a deferral of additional profit tax for 2022 while simultaneously cutting its rate, the Kommersant daily reported on Tuesday.

The project has faced an increase of profit tax for 2022 by 40 billion roubles ($489 million) due to the finance ministry's new approach regarding exchange rate differences.

It comes in addition to the increase in the profit tax rate for LNG projects to 34% from 2023, which, according to Novatek, jeopardises the financing of the Arctic LNG 2 and Obsky LNG projects. ($1 = 81.8000 roubles) (Reporting by Reuters; Editing by Jacqueline Wong)