The Russian Energy Ministry plans to impose special electricity tariffs on miners after the industry migrated into the country from neighboring China.
Russian Energy Minister Nikolai Shulginov announced Wednesday that the government is working on a new structure to distinguish between tariffs between traditional use and cryptocurrency mining, local news agency RBC reported on Wednesday.
Shulginov said that cryptocurrency miners in Russia should not consume electricity for customs purposes for the population, stating:
“We cannot allow miners to take advantage of the situation due to lower electricity charges for the population […] In order to maintain the reliability and quality of the energy supply, we consider it necessary to prevent miners from using electricity in tariffs for the population…”
Some regions of Russia are said to be experiencing explosive growth in energy consumption, presumably as Chinese miners are leaving the country amid a nationwide attack on cryptocurrency.
It is reported that in the Irkutsk region of Russia, which is located about 1,700 km from China, energy consumption last year exceeded almost 160%. The governor of Irkutsk, Igor Kobezhev, noted a “landslide-like growth” in energy consumption in the jurisdiction, accusing the illegal mining of cryptocurrencies, which was exacerbated by the exodus of miners from China.
Irkutsk region, which is one of the largest in Siberia, is rich in energy resources, and there are many large hydroelectric power stations in cities such as Irkutsk, Ust-Ilimsk and Bratsk. The region is home to several mining data centers for BitRiver, the country’s largest cryptocurrency resource.
On the topic: Datacenter operators “not a problem” with the new crackdown on Russian cryptocurrencies
BitRiver founder and CEO Igor Runets told Cointelegraph that the company fully supports the latest DOE initiatives:
– It is affordable and cost effective. Moreover, it will help miners enter the legal field, so that the state can take the first step towards regulating the industry, which will eventually lead to transparency across the industry. ”
Roents said the company pays for data center power at a tariff for corporate customers, and pays “2.5 or 3 times more than individuals.”
Russia has become one of the main destinations for bitcoin (BTC) mining after the surrender of Chinese miners. According to the Cambridge Bitcoin Electricity Consumption Index, bitcoin miners in Russia account for 11% of the total global distribution of bitcoin mining hashrate, behind only Kazakhstan and the United States.