Russian Energy Ministry May Ban Crypto Mining in Three More Regions

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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April 22, 2025

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The Russian Energy Ministry could ban crypto mining in three more regions as local electricity grids continue to come under pressure.

The state-run news agency TASS reported that the ministry is mulling mining bans in the northern part of Karelia (northwestern Russia), the Penza Oblast (over 600km southeast of Moscow), and part of Khakassia, in Southern Siberia.

Russian Energy Ministry: Three More Areas Want Crypto Mining Bans

A spokesperson for Deputy Prime Minister Alexander Novak also confirmed that a government commission is likely to pass a ruling on new mining bans sometime in May.

The same spokesperson also mentioned Khakassia, but did not speak about Karelia or Penza.

On January 1, 2025, Moscow banned mining during the winter months in 10 Russian and Russian-controlled regions, including parts of Southern Siberia and the North Caucasus.

On April 7, Moscow imposed its first year-round ban on crypto mining, outlawing the activity until 2031 in the southern part of the Irkutsk Oblast.

Irkutsk is Russia’s first and most prominent Bitcoin (BTC) mining hub. In the Buryatia and Transbaikalia regions, meanwhile, the government has asked miners to turn off their rigs during peak periods of energy consumption.

Andrey Maksimov, the head of the ministry’s Department for the Development of the Electric Power Industry, confirmed that an “expansion” of the ban was “possible.”

Maksimov said that the government authorities in “several regions” had spoken of their “interest in introducing restrictions.”

However, Maksimov did not specify whether the regions had asked Moscow to impose year-round or seasonal bans.

The official left the door open for Moscow to impose other restrictions, suggesting that the ministry has not decided if further bans truly are the best course of action.

Industrial miners in Karelia, meanwhile, have also suggested that tariffs and increased tax bills could work more effectively than bans.

Industrial Miners Want Taxes and Tariffs, Not Bans

In a separate report, TASS quoted Sergei Maksakov, the chairman of the economics, taxes, and finances committee at the Karelia Chamber of Commerce and Industry, as saying:

“We need some fine-tuning. Categorical methods, like bans, are not the best way. Mining can be limited using differentiated electricity tariffs. We can also partially, perhaps, ask miners to give up their capacities.”

Maksakov added that before changing legislation that affects businesses, Moscow should speak to industrial miners “to reach a consensus.” He concluded:

“The first thing that needs to be done is to discuss these decisions with businesses, not in a narrow circle. And the second issue is regulatory. Economically speaking, we need to ensure that the wolves are fed while the sheep are kept safe.”