Russia considers new energy tariffs as Chinese crypto miners relocate

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The Russian Ministry of Power is seeking to introduce particular electrical energy tariffs for cryptocurrency miners following a migration of the trade into the nation from close by China.

Russian Power Minister Nikolai Shulginov introduced Wednesday that the authority is engaged on a brand new framework to distinguish tariffs between normal utilization and cryptocurrency mining, native information company RBC reported on Wednesday.

Shulginov stated that cryptocurrency miners in Russia mustn’t devour electrical energy at residential tariffs, stating:

“We will’t let miners capitalize on the scenario on the expense of low residential electrical energy tariffs […] In an effort to keep the reliability and high quality of energy provide, we consider it’s needed to ban miners from consuming electrical energy at residential tariffs.”

Some Russian areas have reportedly confronted explosive progress in vitality consumption, allegedly as a consequence of Chinese miners exiting the country amid a nationwide crackdown on crypto.

Russia’s Irkutsk area, positioned about 1,700 kilometers from China, has reportedly seen its vitality consumption charges exceed final yr’s by virtually 160%. Irkutsk Governor Igor Kobzev pointed to “avalanche-like progress” of vitality consumption within the jurisdiction, blaming unlawful crypto mining exercise worsened by the exodus of miners from China.

One of many greatest areas of Siberia, the Irkutsk area is wealthy with vitality assets, internet hosting a number of giant hydroelectricity stations in cities resembling Irkutsk, Ust-Ilimsk and Bratsk. The area is house to some crypto mining data centers by BitRiver, the nation’s largest crypto mining colocation companies supplier.

Associated: Data center operators have ‘no problem’ with new Russian crypto crackdown

BitRiver founder and CEO Igor Runets informed Cointelegraph that the corporate totally helps the newest initiative by the ministry of vitality:

“It’s truthful and economically sound. Furthermore, it should assist miners enter the authorized area, so the state can take step one in the direction of regulating the trade, which can in the end result in transparency of the whole trade.” 

Runets stated that the corporate pays for its information middle electrical energy at enterprise buyer charges, paying “2.5 or 3 instances greater than people.”

Russia has become one of the top locations for Bitcoin (BTC) mining exercise following the Chinese language miner capitulation. In line with the Cambridge Bitcoin Electrical energy Consumption Index, Bitcoin miners in Russia account for 11% of the full international BTC mining hash fee distribution, bested by solely Kazakhstan and the US.