Last updated:
Author
Tim Alper
Author
Tim Alper
Share
Why Trust Cryptonews
Ad Disclosure
We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
The Russian Far East could become the nation’s newest crypto mining hub, with new and idle power centers ordered to start powering Bitcoin mining rigs.
Yuri Trutnev, Russia’s Deputy Prime Minister and Presidential Envoy to the Far Eastern Federal District (FEFD), thinks this would solve the electricity surplus problem in the region, Amurskoye Oblastnoe Televidenie reported.
Trutnev claimed that “keeping” energy reserves is “expensive.” And, he explained, using them to power crypto miners could help to “offset costs.”
Russian Far East Ready to Turn to Crypto?
The Deputy Prime Minister made the comments at a meeting on the development of the electric power industry in the FEFD.
Trutnev claimed that the number of investment projects in the region was set to “grow,” and that the region should create “a reserve of capacities for them in advance.”
To stop these from “sit idly,” he said, “they should be used for cryptocurrency mining.”
“We are confident that we will soon see an uptick in investment projects in the Far Eastern Federal District. Therefore, it would be a good idea to create a reserve of capacity. And, if there is a surplus of electricity, we should set it aside for [crypto] mining, because simply keeping it in reserve is expensive. If it is used for mining, we will not incur any costs.”
Yuri Trutnev, Russia’s Deputy Prime Minister and Presidential Envoy to the Far Eastern Federal District
Trutnev added that the incentive should be carried out in “all” of the Russian Far East’s regions.
The Deputy PM has already followed up by ordering Far Eastern regions to “submit data on their electricity needs.”
He also wants to know about their plans for “the construction of power generating facilities.”
Crypto Pivot
Russia’s pivot to crypto is gathering pace, marking an almost unprecedented U-turn from Moscow.
Late last month, the nation’s power grid provider Rosseti said it wanted to help determine the location of new crypto mining centers in Russia.
It offered to “take responsibility” for coordinating mining facilities nationwide in order to “load up” unused and low-usage power centers.
The energy company runs over 80% of all the nation’s electrical power networks. Other energy giants, such as the oil and gas behemoth Gazprom, have launched crypto mining subsidies.
And the nation’s biggest crypto mining player BitRiver has unveiled plans to work with the Russian state to build crypto mining data centers in fellow BRICS nations.
The Legislation Factor
Meanwhile, RBC reported that the government’s recent crypto legislation has only made minor differences to the way miners operate.
Moscow last year “legalized” crypto mining, officially recognizing it as a form of entrepreneurship.
The rules mean that most private miners can continue to mine coins, provided they do not exceed a threshold of 6,000 kWh of energy per month.
According to a survey conducted by BitRiver rival Intelion Data Systems, 21% of Russian crypto miners “feel that their work has become simplified” with “improved conditions for doing business.”
However, 57% of the survey respondents said they “do not yet understand the full impact of the new laws.”
The firm spoke to about 400 people, including its own clients and “other market participants.”
Russian Miners Growing Keen on ETH?
Intelion Data Systems also said that 33% of the respondents “plan to increase their investment in crypto mining equipment.
However, 42% said they would prefer to keep their powder dry. This group explained that they were “still analyzing current trends” to “determine the best time to expand” their investments.
The respondents also had their say on the future of the crypto markets, with 41% of respondents predicting a “moderate growth” of 10-20% in Bitcoin (BTC) prices “in the first half of 2025.”
Another 22% said they believe BTC will see a period of “strong growth, exceeding expectations.”
And Intelion added that many players are “interested in” diversifying their investment, with 43% calling Ethereum (ETH) their “preferred alternative to Bitcoin.”
The firm said the growing interest in Ethereum was a result of the growth of the smart contract ecosystem and “the opportunities it opens up for decentralized financial (DeFi) projects.”
