Russian Bitcoin Mining Ban Yielding Results in Siberia

The bitcoin mining ban imposed by Russian authorities has helped reduce the load on the Siberian power grid, thereby avoiding potential power rationing and restrictions necessary to preserve the region’s outdated energy infrastructure.

Ministry of Energy: Russian Bitcoin Mining Ban Already Positive For Siberia

While controversial at first, the ban on bitcoin mining that the Russian authorities established last year is already producing positive results for several regions, including Siberia.

The Ministry of Energy highlighted the results that these measures have yielded, helping the region avoid restrictions and outages potentially affecting citizens in a region where sub-zero temperatures are common.

According to TASS, the official Russian news agency, the ministry stated:

Thanks to the ban, the load on the Siberian power grid has decreased by more than 300 MW and it was possible to avoid restrictions.

To increase its control over the installed cryptocurrency mining capacity, the ministry has also proposed the creation of a cryptocurrency mining equipment directory. This would allow authorities to know where this demand is installed and how it could potentially affect the grid in certain spots.

Read more: Russia Enacts Ban on Crypto Mining Operations in 10 Regions, Hints at Expansion

Siberia, ranked amongst the poorest regions of Russia, declared high alert over the possibility of energy shortages last year. In a decree, Governor Igor Kobzev called to establish plans to deal with widespread power cuts and check the level of preparedness of local emergency teams in this kind of contingency.

Russia established restrictions on cryptocurrency mining activities last year, affecting 13 regions differently. In some, including Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk, Lugansk People’s Republics, Zaporozhye, and Kherson, the restrictions start on January 1, 2025, and go until to March 15.

In the Irkutsk region, Buryatia and Zabaykalye, which are part of Siberia, the restrictions were limited to periods of peak energy consumption, which occur from November 15 to March 15.

Russian officials have remarked that, while cryptocurrency mining is important as an activity, this power would be directed to satisfy other priorities first. “Of course, restrictions will be introduced to ensure the connection of social facilities and enterprises under construction first,” said Deputy Prime Minister Alexander Novak in December.