The Russian Energy Ministry is seeking the authority to disconnect crypto miners from energy grids, citing concerns over increased power consumption by Bitcoin miners. Reports indicate that Russian players mined around $3.5 billion worth of Bitcoin last year. Russian officials believe that miners should relocate to regions in the country with surplus energy capacity to avoid straining power resources. The Energy Ministry suggested that miners could self-limit their power consumption or use automatic solutions to disconnect from grids during times of excess energy demand. President Vladimir Putin has given his approval for industrial crypto mining in Russia but has also ordered the government to prevent power grid disruptions caused by miners.
The US government and Microsoft, in a joint effort, have seized 107 websites used by Russian intelligence agents and their proxies operating in the US. This action is part of an ongoing effort to curb Russian cyber activities that threaten national security. Meanwhile, Russian President Putin has expressed concerns about the uncontrolled growth of electricity consumption for cryptocurrency mining, which has led to power shortages in some regions. Traditional Bitcoin mining hotspots in Russia, such as Irkutsk, Buryatia, and the Transbaikal Territory, have been affected by power-related issues due to the significant energy consumption of crypto miners.
To address the power consumption issue, many Russian crypto miners are now looking to move their operations away from Southern Russia and Siberia. Developers in Perm, in the mid-Urals, have completed a purpose-built mining farm with a capacity of 3 MW on a 1.4-hectare plot. In another development, the oil giant Gazprom has launched a crypto mining-focused subsidiary that is constructing a mining farm in Veliky Novgorod. Additionally, the regional governor of Komi has announced plans to build 15 new crypto mining data centers in Russia’s northeast, partnering with private-sector miners and contractors for the project.
Russian Deputy Minister of Energy, Yevgeny Grabchak, emphasized the need for power providers to have the authority to disconnect crypto miners from the power supply, especially during peak energy consumption periods. This move is aimed at preventing power shortages in regions where mining operations are prevalent. The Russian Energy Minister, Sergey Tsivilev, has advised crypto miners to be prepared to relocate to regions with surplus energy capacity to avoid disruptions to the power grid. In response to concerns about excessive energy consumption from mining activities, the Russian government is exploring measures to regulate and manage crypto mining operations to ensure stability in the energy sector.
President Putin has highlighted the importance of controlling the electricity consumption of crypto miners to prevent power shortages in key regions. The government is working on strategies to avoid disruptions caused by the high energy demands of the mining industry. Russian experts estimate that around one-third of crypto miners in the country are based in Irkutsk, leading to power-related challenges in the region. As miners consider relocating to areas with excess energy capacity, the government is reviewing policies to address the growing energy demands of the crypto mining sector. Overall, the Russian government aims to strike a balance between supporting the crypto mining industry and maintaining stable power resources across the country.
