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Moscow will turn idle power plants in Russia’s Far East into Bitcoin mining centers, using surplus electricity that currently costs money to maintain, Deputy Prime Minister Yuri Trutnev announced on February 3, 2025.
The Russian government ordered power centers in the Far Eastern Federal District (FEFD) to start powering Bitcoin mining machines. This move comes after Russia made crypto mining legal in 2024, officially recognizing it as a business activity.
“We are confident that we will soon see an uptick in investment projects in the Far Eastern Federal District,” Trutnev said at a regional power meeting. “If there is a surplus of electricity, we should set it aside for mining, because simply keeping it in reserve is expensive. If it is used for mining, we will not incur any costs”
Rosseti, which runs over 80% of Russia’s power networks, will help place mining facilities at unused power centers across the nation. The energy company aims to put idle electricity to work generating cryptocurrency.
The regulation says private miners can operate if they use less than 6,000 kWh of power monthly. A recent survey by Intelion Data Systems showed that 21% of Russian miners say their business improved under these new rules.
The government’s support extends beyond infrastructure. Russia’s Federal Taxation Service has created an online system for miners to declare earnings. Miners now pay a 15% tax on their profits from creating cryptocurrency.
Russia’s largest mining company, BitRiver, plans to build mining centers with other BRICS nations. This expansion shows Russia wants to become a major force in global crypto mining.
This push into crypto mining marks an almost unprecedented change for Moscow after years of resistance to crypto. The energy giant Gazprom has even started offering mining subsidies.
However, the transition faces challenges. News outlet RBC reported the latest mining laws haven’t changed much for most operators. More than half of the miners surveyed don’t understand how the new rules affect them. Moreover, the government has banned crypto mining in ten regions until 2031 due to energy consumption concerns.
Still, Russian miners expect growth ahead. The Intelion survey found that 41% predict Bitcoin prices will rise in early 2025. Additionally, 33% of the respondents plan to buy more mining equipment. This strategic use of surplus energy could position Russia’s Far East as a significant player in global crypto mining while addressing regional power management challenges.
