According to Russia’s state news agency TASS, a Kremlin official has cautioned that Russia could face an energy shortage within the next 5 to 10 years due to the rapid growth of crypto mining.
Maxim Oreshkin, deputy head of the presidential administration, raised concerns about pressure on Russia’s energy supply due to rising crypto mining activities, particularly in southern Siberia.
While the country does not face widespread energy shortages, certain regions struggle with increased power demands from Bitcoin mining, which is prevalent in south Siberia due to low electricity costs.
Oreshkin suggested that Russia might need to rethink its approach to expanding energy capacity to secure competitive costs for new facilities, particularly as demand from crypto mining rises. “The key question is whether we can build this capacity under new conditions at a price that remains competitive for mining,” he noted.
Crypto mining in Russia is growing rapidly due to the country’s affordable energy resources. BitRiver, a sanctioned mining company, predicts Russia could surpass the U.S. in Bitcoin mining by 2027. CEO Igor Runets noted that the shift in regulations is prompting oil and gas companies to form more partnerships with Russian crypto miners, helping to close the energy consumption gap between the two nations.
Despite Russia’s generally favourable outlook on crypto mining, challenges persist for the industry. According to Deputy Energy Minister Evgeny Grabchak, the country will soon ban Bitcoin mining in areas facing severe electricity shortages. Regions like the Far East, southwestern Siberia, and the South are experiencing notable energy deficits, making it unlikely they can support high power demands until at least 2030.
In a parallel move, the Russian government has formed a focus group to explore using cryptocurrency for foreign trade payments. The group includes representatives from the Chamber of Commerce, the electronics industry, and several banks. Businesses were selected based on turnover, with larger companies given preference, under an experimental legal framework.
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