Alexander Novak Explains Need for Mining Restrictions in Energy-Deficient Regions

Russian Deputy Prime Minister Alexander Novak emphasized the importance of imposing restrictions on cryptocurrency mining in regions with electricity shortages. He stated that while mining can be beneficial in areas with surplus capacity, in regions like the Irkutsk region and Buryatia, it leads to energy deficits and power supply disruptions.

Novak highlighted that the government’s priority is to ensure stable electricity supply for residents and industries. In areas with limited energy resources, mining adds extra load to the grid, potentially impacting the quality of life for citizens and the operation of businesses.

Previously, the government announced plans to ban mining in several regions starting December 1, 2024. Experts note that in the Irkutsk region, electricity consumption by miners has reached 1.1 GW, constituting a significant portion of the region’s total energy consumption. The restrictions aim to reduce grid load and prevent potential emergency situations.