Russia Suggests Moving Cryptocurrency Miners to Northern Areas

# Russia Encourages Crypto Miners to Relocate North to Conserve Energy and Utilize Idle Infrastructure Russian authorities are urging cryptocurrency miners to shift operations to the northern regions to conserve energy and make use of unused infrastructure, as reported by Cryptopolitan on October 21. This initiative follows a series of mining bans in areas struggling with energy shortages. Deputy Minister of Energy, Evgeny Grabchak, highlighted the benefits of the northern regions for mining firms, including lower electricity costs. He pointed out that many northern areas in Russia have dormant electricity generation and transmission infrastructure, which either incurs maintenance costs or faces dismantlement. Utilizing this infrastructure for cryptocurrency mining, Grabchak said, could positively impact the Russian economy and bolster regional energy systems. # Expanding Mining Bans and Exploring Northern Infrastructure Earlier this year, Russian authorities intensified efforts to limit cryptocurrency mining in energy-deficient regions. Mining has been prohibited in about 12 territories, including the North Caucasus republics like Dagestan and Chechnya, as well as occupied Ukrainian territories. These bans are expected to stay in effect until March 2031. The government is also considering additional mining bans in energy-deprived areas such as southern Russia, Irkutsk, Buryatia, and Zabaykalsky Krai. Irkutsk, often called the "mining capital of Russia," was a hub for cryptocurrency mining before the ban. Grabchak noted that the mining restrictions in Irkutsk have successfully slowed energy consumption growth in the region. # Leveraging Idle Transmission Facilities The Russian government is also looking into repurposing decommissioned energy facilities, including those formerly used in oil production, for cryptocurrency mining. One suggestion involves connecting idle transmission facilities to mining data centers. If deemed beneficial for the Russian economy and regional energy grids, these unused resources could provide essential infrastructure for cryptocurrency mining operations. This move aligns with Russia’s broader strategy to balance energy consumption control with economic gains. For mining companies, relocating north will likely depend on a careful evaluation of operational costs and regional benefits.