The Russian Ministry of Energy announced a complete ban on cryptocurrency mining in the Transbaikal Territory and Buryatia, which will come into effect in May 2025.
The decision, supported by regional authorities and the federal government, is due to a sharp increase in energy consumption: in 2024, #electricity consumption in Zabaikalye increased by 7.36%, with mining accounting for more than half of the increase. The ban expands the earlier seasonal restrictions, which reduced the load on the grid by 320 MW in winter, and is aimed at stabilizing the Siberian energy system.
The ban affects both legal and informal mining operations that create an excessive load on Siberia's power grids, especially in the area centered on the Irkutsk Region. In 2024, energy consumption in the Siberian Federal District grew by 5.1% to 239.4 billion kWh, with mining becoming a key factor in the shortfall.
Deputy Energy Minister Yevgeny Grabchak emphasized that the new rules will protect critical infrastructure, but the measure is likely to disrupt local miners. Legal operators will have to move capacity, and informal miners may go underground. In Buryatia, where data centers provide jobs, the ban could lead to economic losses, and the cost of relocation is estimated to be twice as high as building new facilities.
The impact on the global cryptocurrency market is likely to be limited, as Russia holds only a fraction of the global #bitcoin hashrate. However, the ban will reduce Russia's mining potential, especially in Irkutsk, which accounts for a third of national operations. Miners could move to regions with surplus power, such as Yakutia, but that would take time and investment.
Critics, including Sergey Sasim, an expert at the National Research University Higher School of Economics, believe the ban is overly harsh, as current laws already allow miners to be shut down if necessary. The Ministry of Energy suggests that miners switch to autonomous power generation to avoid conflicts with the general grid.
Looking forward, the ban emphasizes the difficulty of balancing Russia's energy needs with the development of the crypto industry. New power projects, such as the 460 MW expansion of the Kharanorskaya TPP in 2025, may alleviate the shortage, but the future of Siberian miners remains uncertain.
