Russia Expands Its Crypto Mining Bans To Three More Regions As Power Grid Strains Intensify

The Russian Energy Ministry is considering extending crypto mining bans to three additional regions—northern Karelia, Penza Oblast, and parts of Khakassia—as local electricity grids face mounting pressure from surging energy demand.

This move comes as authorities across Russia ramp up efforts to stabilize power supplies and address the challenges posed by energy-intensive mining operations.

A spokesperson for Deputy Prime Minister Alexander Novak confirmed that a government commission is expected to rule on the proposed bans in May, following formal requests from local authorities in these regions.

However, details remain unclear regarding whether the restrictions would be year-round or seasonal, as the ministry has yet to finalize its approach.

The push for new bans follows a series of recent crackdowns. On January 1, 2025, Moscow imposed winter mining bans in ten Russian and Russian-controlled regions, including parts of Southern Siberia and the North Caucasus.

More recently, on April 7, the government enacted its first year-round mining ban in southern Irkutsk Oblast, effective until 2031, after local officials warned of excessive strain on the grid.

Irkutsk, once dubbed Russia’s “mining capital” for its cheap power, has seen significant operational changes as a result.

Energy officials say these measures have already helped ease pressure on regional grids, with the Siberian power system reportedly saving over 300 megawatts in capacity since the bans took effect.

Still, some regions continue to report abnormal spikes in household electricity use, raising suspicions of illegal mining activities hidden in residential areas.

Industrial miners in Karelia and other regions argue that outright bans may not be the best solution. Instead, they propose differentiated electricity tariffs and increased tax bills as more effective tools to regulate the sector without driving legal operations underground.

Sergei Maksakov, a leading voice from the Karelia Chamber of Commerce and Industry, emphasized the need for open dialogue with businesses before enacting sweeping restrictions, warning that blanket bans could push mining activity into unregulated, less visible channels.

"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 capabilities."

Across Russia, more than a dozen regions—including Dagestan, Ingushetia, Chechnya, and annexed territories in Ukraine—have already imposed partial or full mining bans, with additional restrictions in place during peak energy consumption periods in areas like Buryatia and Transbaikalia.

The government is also intensifying monitoring efforts to crack down on illegal mining and is considering the creation of a national registry for mining equipment.

As Russia weighs its next steps, the debate continues between authorities seeking to protect energy infrastructure and industry players advocating for regulatory solutions that balance economic opportunity with grid stability.