Russian Governor Who Slated Miners in October Now Plans to Welcome Them

Cryptocurrency Mining Politics Regulation Russia
Last updated:
Author
Author
Tim Alper
About Author

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...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Source: AdobeStock / Ekaterina Shvaygert

The Governor of a Russian province who just weeks ago was blasting crypto miners has now offered to help them set up shop in the region and provide support for people mining tokens.

As reported in October, the Irkutsk Region Governor Igor Kobzev called on the Russian Deputy Prime Minister and key power sector policymaker Alexander Novak to help him fight an “avalanche-like spike in energy consumption” in Irkutsk, which is quickly becoming a mining hotspot.

In October, Kobzev stated that underground mining had already increased tenfold compared to 2019 figures, and warned that networks in Irkutsk were struggling to cope with increased load. He squarely blamed underground crypto miners for power outages in suburban areas, where he claimed many were secretly operating.

The Russian government has responded by indicating that it will seek to create legal definitions for mining-related terms and order miners to pay slightly higher electricity rates than ordinary residents. And this appears to have satisfied the Governor – who now seems to have become positively pro-mining.

Interfax quoted Kobzev as stating that mining should be classified as “entrepreneurial activity.” He spoke about providing them with designated sites for their “industrial activity.”

The news agency quoted him as stating:

“As you know, I turned to the Deputy Prime Minister of the Russian Federation. And [I] consider [mining] to be an entrepreneurial activity. The government has its own opinion on this matter. It looked at [our complaints] and supported us.”

In fact, it seems that as long as miners are happy to work in conjunction with the authorities, they will have Kobzev’s blessing.

As winter gets started in Russia, networks could face big challenges: most residents in the Irkutsk region use electricity to heat their houses, with electricity deriving from sources such as thermal power and hydroelectric energy.

But Kobzev stated that if miners work directly with the power companies they could actively reduce the load on the distribution networks of urban areas.

He said:

“We are ready to provide miners with platforms for industrial mining. For example, in Ust-Ilimsk. But this must be done in an orderly way, so that they make use of separate lines that will not cause a strain on [town and city] networks.”

The town of Ust-Ilimsk is home to the Soviet Union-era 3,840 MW Ust-Ilimsk Hydroelectric Power Station, as well as a thermal power plant.

The River Angara runs through the province, and also powers two other major hydroelectric plants: the 4,515 MW Bratsk Hydroelectric Power Station and the 687.1 MW Irkutsk Hydroelectric Power Station.

____

Learn more:

Bitcoin & Crypto Mining Costs Might Increase in Russia As Regions Complain
Russian Central Bank Says No As Ministries Hope to Legalize Bitcoin Mining

Russian Senate Finance Chief Says Crypto ‘Probably Has a Future’
Putin Says Crypto Is ‘Not Worthless’ and Has ‘the Right to Exist’

Bitcoin Mining Moves In Russia & US, Ledger Gets Big Client + More News
US Becomes Largest Bitcoin Mining Hub After China’s Miner Exodus
 

More Articles

Altcoin News
Andreessen Horowitz Scales Back UK Operations Amid Trump’s Pro-Crypto Policy Push
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-01-25 11:28:20
Bitcoin News
Nasdaq Seeks In-Kind Creation and Redemption for BlackRock Spot Bitcoin ETF
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-01-25 11:20:43
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors