The executive power in Moscow has imposed a total ban on crypto mining in parts of Irkutsk oblast. With its cheap energy, the Siberian region, sometimes called “the mining capital of Russia,” has attracted a significant number of miners in the past few years.
The restrictions, which started as a seasonal measure to limit electricity consumption in the cold winter months, will now be in place year-round until 2031. The federal government has extended them in response to calls from regional officials to reduce the load on the local power grid.
Moscow extends Irkutsk crypto mining ban until 2031
Russia’s government has decided to permanently ban cryptocurrency mining in the south of the Far Eastern region of Irkutsk for a period of six years. The respective decree has been signed by Russian Prime Minister Mikhail Mishustin.
The restrictions went into effect on April 7 and will remain in place until March 15, 2031. They cover almost two dozen districts in the southern half of the region as well as several cities, including the capital Irkutsk, Zima, Sayansk, Svirsk, Tulun, Usolye-Sibirskoye, and Cheremkhovo.
The news was announced by the Governor of Irkutsk Oblast, Igor Kobzev, who took to social media to share details about the prohibition. “We have repeatedly addressed the Government of the Russian Federation with this initiative. And they have heard us,” Kobzev stated in his post on Vkontakte, highlighting the importance of Moscow’s decision for his oblast.
“As one of the centers of crypto mining in the country, the Irkutsk region faces serious socio-economic problems associated with the excessively high load of mining activities on the regional power grid,” the local official explained.
Irkutsk region Governor Igor Kobzev said he had requested the ban due to the “excessively high load” mining placed on the region’s energy system.
Irkutsk governor blames power outages on crypto miners
Kobzev further noted that the significant increase in electricity consumption to power crypto mining rigs is causing frequent power outages and limiting the electricity generation capacity needed to connect other consumers to the distribution network.
“In particular, we are seeing an energy deficit in the south of Irkutsk,” he emphasized and explained that the temporary ban, which was in effect between January and March, has made it possible to free up 320 MW of generation capacity.
That saved the region some 146 billion rubles ($1.7 billion) that would otherwise be spent on building additional generating facilities, the governor added. He described the federal government’s move as an important step towards overcoming energy deficits in the oblast.
Temporary mining break turns permanent with Putin’s nod
Crypto mining was initially halted from Jan. 1 to March 15 in parts of the Far Eastern Irkutsk Oblast, Republic of Buryatia and Zabaykalsky Krai. Russia’s Ministry of Energy later insisted the restrictions applied to bitcoin farms had helped avoid limiting electricity supply for other consumers.
The Russian business daily Kommersant first wrote about the possibility of extending the mining ban. According to its article, Russian President Vladimir Putin supported the initiative of the local authorities with a note requiring to “restore order in the interests of the region.”
The ban was originally intended as a seasonal measure, going into effect only during winters in the next six years. Last month, the Russian government allowed mining to resume in the energy-deficient regions, provided that miners are using their own electricity-generating facilities.
Kommersant also reported that a local power utility, the Irkutsk Electric Grid Company, has incurred losses of almost $10 million due to the crypto mining ban. The end user never felt a change in the quality of electricity supply, its CEO told the newspaper at the time.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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