Moscow Considers Year-Round Ban on Crypto Mining in Buryatia and Transbaikal Amid Energy Shortages

• Why Is Russia Targeting These Two Regions?
• How Did We Get Here?
• The Mining Industry’s Image Problem
• What’s Next for Russian Miners?
• Key Takeaways:
• FAQs

Russia’s federal government is weighing a permanent ban on cryptocurrency mining in Buryatia and Transbaikal, two Siberian regions already grappling with seasonal electricity shortages. The move follows temporary restrictions imposed during high-demand winter months, but officials now argue the energy-intensive industry threatens grid stability year-round. While some policymakers defend mining as a way to monetize stranded energy resources, others blame it for exacerbating power deficits. This article breaks down the regulatory tug-of-war, its economic implications, and what it means for Russia’s crypto landscape.

Why Is Russia Targeting These Two Regions?

Buryatia and Transbaikal share an electricity grid with Irkutsk Oblast, where mining is already banned until 2031. Olga Arutyunova from the Energy Ministry revealed that seasonal restrictions—currently active only in winter—may become permanent after monitoring consumption patterns. "We’re tracking the situation closely. If needed, we’ll act swiftly to ban mining outright, as in Irkutsk," she stated during a parliamentary meeting. The regions attract miners due to subsidized power rates, but their aging infrastructure struggles to handle the load.

How Did We Get Here?

Russia legalized crypto mining in 2024 to capitalize on cheap energy and cold climates. However, the sector’s explosive growth led to localized blackouts. A dozen regions have since imposed restrictions, with Irkutsk taking the hardest line. Energy Minister Sergei Tsivilyov even proposed laws to let other industries claim power capacity from mining farms. By July 2025, his ministry drafted rules classifying crypto farms as "low-priority consumers," allowing utilities to cut their supply during shortages.

The Mining Industry’s Image Problem

Anton Gorelkin, a senior lawmaker, acknowledged that miners remain unpopular despite legalization: "Their reputation is still terrible. They must prove their economic value." Meanwhile, Aisen Nikolayev, governor of energy-rich Sakha Republic, argued mining helps monetize remote resources. "For isolated regions with untransportable energy, mining is a solution," he told TASS. This split reflects Russia’s broader dilemma—balancing innovation with grid reliability.

What’s Next for Russian Miners?

Registered operators face mounting uncertainty. "Every policy shift forces us to relocate equipment across this massive country," complained one miner (who asked to remain anonymous). The BTCC research team notes that compliant firms bear the brunt of restrictions, while illicit operations often evade scrutiny. With federal and regional authorities at odds, the industry’s future hinges on whether it can rebrand as an energy-sector ally rather than a parasite.

Key Takeaways:

• Regulatory Whiplash: Temporary bans may become permanent in Buryatia/Transbaikal
• Energy Battles: Mining consumes ~2% of Russia’s power (Source: Energy Ministry)
• Economic Divide: Remote regions see mining as development; grid-strained areas view it as a burden

FAQs

Which Russian regions already ban crypto mining?

Irkutsk Oblast has a total ban until 2031, while 10+ others enforce seasonal restrictions.

Can miners operate legally in Russia?

Yes, if registered with tax authorities and using declared hardware—but local rules vary wildly.

Why target Buryatia and Transbaikal specifically?

Their shared grid with Irkutsk makes them vulnerable to cascading shortages.