Russian Energy Ministry Proposes Cutting Power to Crypto Miners During Shortages

MOSCOW — The Russian Energy Ministry has proposed granting energy providers the authority to disconnect cryptocurrency miners from the power grid during periods of energy shortages. The proposal follows concerns that surging crypto mining activity could strain Russia’s energy resources, particularly in regions already experiencing deficits.

Yevgeny Grabchak, Russia’s Deputy Energy Minister, stated that miners could be temporarily disconnected to preserve energy for essential consumers. However, he indicated that miners could continue operations during low-demand periods when surplus power is available. The ministry has also encouraged miners to relocate to areas with more robust energy supplies, such as the Komi Republic, where new mining facilities are under development.

Crypto mining was legalized in Russia earlier this year, with President Vladimir Putin highlighting the need to balance industrial growth with energy stability. Russia has become a significant player in the Bitcoin mining industry, contributing approximately $3.5 billion in BTC production last year. However, power grid disruptions in regions like Irkutsk have led to increased scrutiny and local crackdowns on unregulated mining operations.

Some miners are now shifting operations to regions like Perm and Veliky Novgorod, where new purpose-built mining farms are being developed, including a 3 MW facility on a former fur farm and Gazprom’s planned mining subsidiary in Veliky Novgorod.