Expert Sasim: Low Electricity Rates Lure ‘Gray’ Miners in the North Caucasus

Sergey Sasim, Director of the Center for Research in Electric Power, pointed out that “gray” and “black” mining have proliferated in the North Caucasus region due to low tariffs. He estimates that unregistered hookups lead to losses in the hundreds of millions of rubles. Complaints from power companies have surged sharply since 2024.

Observers note that a substantial portion of financial strain arises from technical losses and irregular loads. Many miners, according to a recent report, use residential power lines for industrial gear without proper licensing.

Sasim stresses that detecting these incidents demands coordinated action by utility providers and law enforcement. In the near term, stricter punitive measures, potentially up to criminal charges, may be enacted.