Will the Russian cryptocurrency mining market receive a subsidy of USD 4 billion?

Russia's cryptocurrency mining market could receive $4 billion in support. This was confirmed by the head of the Russian Industrial Mining Association (IPM), Sergei Bezdelov.

Cryptocurrency mining market in Russia with a subsidy?

Bezdelov spoke to journalists during a conference in Irkutsk.

We are ready to invest approximately USD 4 billion in the development of new data centers

– he said.

However, these are centers that will not only mine cryptocurrencies, but also potentially help the government in further implementation of the new data market project. This is an initiative of the Ministry of Digital Development.

Bezdelov said Russian miners are “ready to provide space” in new and existing data centers. They will help the ministry not only in Siberia but also in Moscow by providing “energy capacity and maintenance personnel” for data centers.

According to our preliminary estimates, this will help the government save USD 32.4 million. Building data centers is a very expensive undertaking. Not to mention the need to import equipment, the purchase of which may be difficult for Russian companies (due to sanctions)

– added.

Will Russian miners pay more for electricity?

However, there are also negative signals in the background. The Ministry of Energy is considering increasing electricity prices for cryptocurrency miners. This will help reduce network load.

But it's very disturbing, especially in Irkutsk. This region has become the de facto capital of the Russian market.

Sergei Sasim, director of the Center for Research on Power Engineering at the Higher School of Economics of the State Research University, said that the ministry's position is “understandable.” Energy suppliers say that by 2029, mining could lead to deficits totaling 3.5 GW in eastern Siberia, the Far East and southern Russia. Russian experts say mines in Irkutsk “account for about a quarter” of the mining market's electricity consumption.

On the other hand, according to TASS news agency, full legalization of the Russian cryptocurrency mining industry could help the state collect USD 540.3 million in tax revenues.