Russia considers new energy tariffs as Chinese crypto miners relocate


The Russian Ministry of Energy plans to introduce special electricity tariffs for cryptocurrencies after the industry has migrated to the country from neighboring China.

As the local news agency RBC reported on Wednesday, Russia’s Energy Minister Nikolai Shulginov announced on Wednesday that the agency is working on a new structure that will differentiate tariffs between public use and recovery of cryptocurrency.

Shulginov said that crypto-miners in Russia should not consume electricity for housing tariffs, saying:

“We can not allow miners to take advantage of the situation due to the low electricity tariff for the population […] In order to maintain the reliability and quality of the power supply, we consider it necessary to prevent miners from consuming electricity at the tariff for the population.”
It is reported that some Russian regions are facing a sharp increase in energy consumption: Chinese miners are reportedly leaving the country in the midst of a nationwide attack on cryptocurrency.

In the Irkutsk region of Russia, located about 1700 km from China, the level of energy consumption exceeded last year’s level by about 160%. Irkutsk Governor Igor Koptsev noted a “landslide-like increase” in energy consumption in the jurisdiction and accused illegal mining activities of cryptocurrency, exacerbated by the emigration of miners from China.

Irkutsk, one of the largest regions in Siberia, is rich in energy resources, it has several large hydropower plants in cities such as Irkutsk, Ust-Ilimsk and Bratsk. The region is home to several mining data centers for cryptocurrency from BitRiver, the country’s largest supplier of mining searches.

RELATED: Data Center Operators Have No Problems with New Russian Encryption Campaign

Igor Ronets, founder and CEO of BitRiver, told Cointelegraph that the company fully supports the latest initiative of the Ministry of Energy:

It is fair and cost effective. In addition, it will help miners enter the legal field so that the state can take the first step towards regulating the industry, which will ultimately lead to transparency for the entire industry. ”
Roents said the company pays for its data center power in line with corporate customers, paying “2.5 or 3 times more than individuals.”

Russia has become one of the best places to extract Bitcoin (BTC) after the surrender of a Chinese miner. According to the Cambridge Bitcoin Electricity Consumption Index, bitcoin miners in Russia account for 11% of the total distribution of the world’s BTC mining hash rate, ahead of only Kazakhstan and the United States.



Please enter your comment!
Please enter your name here