- The Russian government has approved a mining ban in specific regions starting January 1, 2025, lasting until 2031
- Authorities aim to balance energy consumption and address disparities in electricity tariffs across regions
- Russia has softened its view on crypto mining in recent years and is promoting in some areas for extra income
The Russian Cabinet has introduced a sweeping ban on cryptocurrency mining in several regions, set to begin in 2025 and last until 2031, TASS reported. Mining activities will also face temporary restrictions in regions with peak electricity demand, addressing energy supply challenges and regional tariff imbalances. The decision aligns with the government’s efforts to regulate energy usage and ensure fair business conditions across the country, although it remains broadly open to the practice.
Mining Ban Covers Key Regions
Starting January 2025, digital currency mining, including participation in mining pools, will be prohibited in Dagestan, Chechnya, and several North Caucasus republics, as well as the Donetsk, Lugansk, Zaporizhia, and Kherson regions, according to a resolution obtained by TASS. Some areas of the Irkutsk Region, Buryatia, and Zabaikalsky Krai will face mining restrictions during peak consumption periods, such as winter months. The measures aim to prevent energy shortages and maintain industrial demands.
A government representative explained that the list of restricted regions may evolve depending on decisions by the commission overseeing electric power development. “This is about ensuring energy balance while supporting industrial needs,” the representative stated to TASS.
Shortages Addressed
Energy expert Sergey Kolobanov highlighted that the mining ban addresses both electricity shortages and tariff imbalances. “Interregional cross-subsidization results in artificially low energy costs in some regions, subsidized by others,” he told TASS, adding that the timeline for the ban coincides with plans to end these benefits. Kolobanov suggested the restrictions could be lifted if sufficient energy capacity is achieved post-market liberalization.
Vladimir Klimanov, director at the Center for Regional Policy, noted that central Russia has long subsidized low energy rates in the North Caucasus and Far East. “These measures aim to create more equitable business conditions across the country,” he said.
Mining has been legalized in Russia since November, provided individuals and businesses register with the Federal Tax Service (FTS). Private miners are limited to energy consumption of 6,000 kWh per month, while businesses must disclose assets and wallet addresses. This regulatory framework ensures transparency and oversight in the burgeoning crypto-mining sector.
The restrictions are poised to reshape Russia’s mining landscape, balancing regional energy demands and fostering equitable economic conditions.
