Key Points
- Russian government has approved a comprehensive ban on cryptocurrency mining across 10 regions, effective January 1, 2025, through March 15, 2031, aimed at maintaining energy consumption balance and addressing regional electricity pricing disparities.
- The ban affects regions with subsidized electricity rates, including territories in North Caucasus and newly integrated regions, with additional seasonal restrictions in Irkutsk Oblast, Buryatia, and Zabaikalsky Krai during peak consumption periods.
Regional Impact and Scope
According to Tass, the ban will be implemented across multiple regions including Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Luhansk People’s Republics, and the Zaporizhzhia and Kherson regions. Additionally, temporary restrictions during peak energy consumption periods (January 1 to March 15 in 2025, and November 15 to March 15 in subsequent years) will affect parts of Irkutsk Oblast, Buryatia, and Zabaikalsky Krai.
Expert Analysis and Economic Implications
According to Sergei Kolobanov, Deputy Director of the Fuel and Energy Complex Economics Center, the ban addresses both local electricity deficits and regional electricity pricing subsidies. The current system of inter-regional cross-subsidization results in lower electricity costs in certain regions being effectively compensated by producers and consumers in other areas. Vladimir Klimanov, Director of the Center for Regional Policy, notes that businesses and residents in central Russia traditionally subsidize the lower electricity tariffs in the North Caucasus and Far East regions.
Legal Framework and Compliance
Since November, mining has been legally recognized in Russia, subject to specific conditions. Miners must register with the Federal Tax Service (FNS) and provide information about their digital assets and crypto wallet addresses. Individual entrepreneurs and legal entities are required to register in the miners’ registry, while private individuals are limited to mining operations consuming no more than 6,000 kWh per month. The government maintains flexibility in adjusting the list of restricted regions based on decisions by the government commission on electric power industry development.
