Russia considers new energy tariffs as Chinese crypto miners relocate

The Russian Ministry of Power is trying 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 shouldn’t eat electrical energy at residential tariffs, stating:

“We are able to’t let miners capitalize on the state of affairs on the expense of low residential electrical energy tariffs […] To be able to preserve the reliability and high quality of energy provide, we imagine it’s mandatory to ban miners from consuming electrical energy at residential tariffs.”

Some Russian areas have reportedly confronted explosive development in power consumption, allegedly resulting from Chinese language miners exiting the nation amid a nationwide crackdown on crypto.

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

One of many largest areas of Siberia, the Irkutsk area is wealthy with power 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 information facilities by BitRiver, the nation’s largest crypto mining colocation companies supplier.

Associated: Information middle operators have ‘no drawback’ 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 power:

“It’s honest and economically sound. Furthermore, it is going to assist miners enter the authorized area, so the state can take step one in the direction of regulating the trade, which is able to finally result in transparency of all the 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 turn into one of many high places for Bitcoin (BTC) mining exercise following the Chinese language miner capitulation. In accordance with the Cambridge Bitcoin Electrical energy Consumption Index, Bitcoin miners in Russia account for 11% of the entire international BTC mining hash fee distribution, bested by solely Kazakhstan and the US.