Russia Considers Year-Round Crypto Mining Ban in Buriatia and Transbaikal Amid Power Grid Strain (2025 Update)

• Why Is Russia Targeting Buriatia and Transbaikal?
• The Great Russian Mining Crackdown
• Miners Fight Back: "We’re Not the Villains!"
• The Bigger Picture: Russia’s Crypto Conundrum
• FAQ: Your Burning Questions Answered

Moscow is tightening its grip on crypto mining as energy shortages plague Siberia. The Russian government is weighing a full-year ban on bitcoin mining in Buriatia and Transbaikal—regions already under seasonal restrictions—citing grid instability. While miners cry foul, officials argue the move is necessary to prevent blackouts. Meanwhile, some regions like Yakutia still embrace mining to monetize stranded energy. Here’s the full breakdown of Russia’s love-hate relationship with crypto mining.

Why Is Russia Targeting Buriatia and Transbaikal?

Russia’s Energy Ministry is done playing nice with crypto miners in these two regions. Olga Arutyunova, a deputy director at the ministry, dropped the bombshell during a Senate meeting: "We’re monitoring the situation. If needed, we’ll slap a full ban like we did in Irkutsk." Currently, mining is only restricted during winter when heaters and factories max out the grid. But with miners allegedly causing "frequent outages," officials want them gone for good. Irkutsk, their neighbor, already banned mining until 2031—so the writing’s on the wall.

The Great Russian Mining Crackdown

Since legalizing mining in 2024, Russia’s seen a Gold rush—but at a cost. Over a dozen regions have imposed restrictions, from seasonal curbs to outright bans. The reason? Miners flocked to areas with cheap, subsidized power (think $0.03/kWh in Siberia), crashing local grids. In July 2025, Energy Minister Sergei Zhivilyov even proposed repurposing mining farms’ power quotas for "higher-priority" industries. Now, the ministry’s drafting rules to classify crypto farms as "low-priority" consumers, meaning they’ll be first to get cut off during shortages. Ouch.

Miners Fight Back: "We’re Not the Villains!"

Anton Gorelkin, a top lawmaker in Russia’s Duma, admits miners have a PR problem: "Their image is toxic, and it’s their job to prove they’re useful." Legit miners complain that shifting regulations force them to haul equipment across the country like nomads. But not all officials agree with the crackdown. Aisen Nikolayev, governor of Yakutia, argues mining is a "lifeline" for remote regions with stranded energy. His pitch? Use local coal/gas to power mines instead of exporting it at a loss. "It’s economic logic," he told TASS.

The Bigger Picture: Russia’s Crypto Conundrum

Russia’s stuck between two truths: 1) Mining brings in taxes and leverages its cold climate/cheap energy, and 2) Its aging grid can’t handle the load. The Irkutsk blackouts of 2024 were a wake-up call. Yet, as Nikolayev notes, banning mining everywhere wastes energy that can’t be sold otherwise. The compromise? Let mining thrive where infrastructure allows (like Yakutia) and choke it where it doesn’t (like Buriatia). For now, miners are sweating—will their next destination be a boomtown or a banned zone?

FAQ: Your Burning Questions Answered

Which Russian regions have banned crypto mining?

As of 2025, Irkutsk has a full ban until 2031, while Buriatia and Transbaikal face potential year-round bans. Over 10 other regions have seasonal restrictions.

Why is Russia banning crypto mining?

Officials blame miners for overloading power grids, especially in Siberia where energy infrastructure is outdated. Blackouts in 2024 forced their hand.

Can miners operate legally in Russia?

Yes, if registered with tax authorities and compliant with local rules. But the goalposts keep moving—many are relocating to stable regions like Yakutia.

How does this affect Bitcoin’s price?

Historically, mining crackdowns cause short-term sell-offs (see China’s 2021 ban). But long-term, Russia’s role isn’t decisive—it contributes ~8% of global hash rate (Source: CoinMetrics).