Abkhazia Says It Has Shut Down ‘All Large Crypto Mining Farms’

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…

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Abkhazia Says It Has Shut Down ‘All Large Crypto Mining Farms’

The de facto nation of Abkhazia claims it has shut down all “large” crypto mining “farms” on its territory.

The partially recognized state, on the Black Sea coast of the South Caucasus region, has suffered years of electricity woes.

Crypto miners have been blamed for the disruption, which has caused societal and political havoc.

However, an ongoing crackdown on illegal crypto miners appears to have done little to solve the energy crisis: Electricity shortages are also in the cards as winter draws closer.

A monument in Gagra, Abkhazia.
A monument in Gagra, Abkhazia. (Source: Vyacheslav Argenberg [CC BY 2.0])

Abkhazia: Crypto Miners Blamed for Power Problems

Per EA Daily, Dzhansukh Nanba, Abkhazia’s First Deputy Prime Minister and its Minister of Energy and Transport, claimed that “there are no large crypto mining farms operating in Abkhazia.”

Nanba said that the Abkhazia power provider Chernomorenergo carried out a “stress test” earlier this year.

The minister said that the test showed that crypto miners in Abkhazia currently consume between 40 and 45 megawatts of electricity.

“Cryptocurrency mining still exists in the republic. But the most important thing to note is that no large mining farms are operating now. It is these large farms that cause the most serious harm.”

Dzhansukh Nanba, Abkhazia’s First Deputy Prime Minister & Minister of Energy and Transport

The history of crypto mining in Abkhazia is complicated. The government has in turn banned and welcomed miners.

In more recent years, there have been violent scenes as miners have been driven out of communities by force following months of blackouts, substation fires, and brownouts.

Crackdown Continues

At present, Abkhazian law prohibits all forms of crypto mining, with energy shortages once again on the rise.

However, police officers and customs officials still “periodically” catch smugglers trying to bring crypto mining equipment across the Russian-Abkhazia border.

Officers also continue to hunt down private miners, many of whom use illegal grid connections.

Earlier this month, Jam News reported that the Abkhazia government announced a “season” of rolling blackouts beginning “throughout the republic” on November 1.

The media outlet spoke of a “catastrophic shortage of electricity” that will see power shut off on a daily basis.

The Abkhazian Children’s Rights Commissioner Maktina Dzhinjolia asked the government to “make an exception for kindergartens and schools.”

Russia, Abkhazia’s closest political ally, has previously responded by providing Abkhazia with surplus energy.

But Moscow is now experiencing crypto mining-related power problems of its own. Earlier this month, Russia’s Deputy Energy Minister Yevgeny Grabchak hinted that regional crypto mining bans were on their way. He suggested these may come in the Russian Far East, Southwest Siberia, and Southern Russia.

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