The Russian Energy Ministry is considering banning crypto mining in three additional regions due to the strain on local electricity grids. According to a report by the state-run news agency TASS, the ministry is contemplating imposing mining bans in the northern part of Karelia, the Penza Oblast, and part of Khakassia in Southern Siberia.
A spokesperson for Deputy Prime Minister Alexander Novak indicated that a government commission is expected to make a decision on new mining bans in May. While Khakassia was specifically mentioned, there was no mention of Karelia or Penza.
This move comes after Moscow implemented winter mining bans in 10 regions on January 1, 2025, and imposed a year-round ban in the southern part of the Irkutsk Oblast on April 7. The government has also requested miners in Buryatia and Transbaikalia to power down their rigs during peak energy consumption periods.
Andrey Maksimov, the head of the ministry’s Department for the Development of the Electric Power Industry, stated that an expansion of the ban is a possibility. He mentioned that several regions have expressed interest in introducing restrictions, although it is unclear if they are seeking year-round or seasonal bans.
While the ministry is considering further bans, industrial miners in Karelia have suggested that tariffs and increased tax bills could be more effective measures than outright bans. Sergei Maksakov, chairman of the economics, taxes, and finances committee at the Karelia Chamber of Commerce and Industry, emphasized the need for dialogue with businesses before implementing legislative changes that impact them.
He suggested that differentiated electricity tariffs and voluntary reduction of mining capacities could be viable alternatives to blanket bans. Maksakov stressed the importance of reaching a consensus with industrial miners and ensuring that regulatory decisions are made in consultation with affected businesses.
The potential ban on crypto mining in these three regions highlights the ongoing challenges faced by the Russian government in balancing the demand for energy-intensive activities like mining with the need to maintain a stable electricity supply. As discussions continue, it remains to be seen how Moscow will address the concerns of both miners and energy regulators in these regions.