The Russian government is set to restrict domestic data processing centers from engaging in cryptocurrency mining using subsidized electricity. This decision was reported by RBC, highlighting that the government has revised a draft law on mining initially passed in a first reading by the State Duma in 2022. Efforts are being made by government officials to fine-tune the bill before its second reading.
### Mining Cryptocurrency to Be Restricted in Many Russian Data Centers
Under the proposed legislation, data processing centers would be required to join a registry managed by the Ministry of Digital Development and Communications. Participation involves committing not to use the facilities for cryptocurrency mining. Only those centers making such commitments will qualify for electricity at preferential rates. The aim of the bill is to ensure that mining activities do not benefit from subsidized electricity tariffs, which are meant for facilities recognized formally as “communication facilities.”
Russian electricity companies offer reduced power rates to household consumers as well as to industrial and commercial entities. However, there has been a recent push for the introduction of special rates for crypto mining activities that do not include subsidies. Membership in the registry is voluntary, but registered companies will be prohibited from hosting mining rigs, regardless of whether they are connected to the internet.
### Ready for Compliance
Russian cryptocurrency mining experts have expressed no surprise over the bill. Artem Shchepinov, Director-General of Intelion, mentioned his anticipation of such measures, suggesting they would reinforce Russia’s technological independence and regulate its digital infrastructure. There have been concerns about the lack of private sector consultation in drafting the bill, with some predicting negative impacts on both industrial crypto mining and traditional data center industries. Nevertheless, some data center operators believe this will not significantly affect large industrial miners, citing their self-sufficiency and sustainability without the need for government support.
### The Future of Dual-use Facilities
Significant industrial miners that operate dual-use facilities, offering services for both mining and conventional IT resources, are starting to adapt. For instance, Intelion has prepared by segregating its facility in the Samara Oblast into two clusters: one for crypto mining and another for AI computing. This year, notable revenue figures were reported for Intelion and BitRiver, underscoring the substantial focus of Russian industrial miners on Bitcoin (BTC), although many home miners in the country show a preference for mining Ethereum (ETH), according to crypto enthusiasts.
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