Prime

In a groundbreaking move, <a href="https://ultramining.com/news/en/russia-s-energy-ministry-charges-forward-to-legalize-crypto-mining/">Russia</a>'s Ministry of Energy proposes a sharp increase in <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/">electricity</a> transmission tariffs targeting cryptocurrency mining centres. This strategy mainly aims to move the mining centres to regions with surplus energy, thereby avoiding potential disruptions in power supply and problems in connecting new consumers. Particularly, the regions under the lens are Buryatia, Trans-Baikal Territory, and the <a href="https://ultramining.com/news/en/irkutsk-region-busts-1-000-illegal-crypto-miners-in-a-year-fires-a-major-concern/">Irkutsk</a> Region, known for housing a significant portion of mining farms due to previously low tariffs. 
As per <a href="https://www.kommersant.ru/doc/6224933">Kommersant</a>, Deputy Prime Minister Alexander Novak orchestrated the initiative to develop a new tariff regulation scheme for mining centres. These plans could set a precedent as they propose varying <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/">electricity</a> tariffs based on the activities of the consumers, a deviation from the current uniform rate system determined by the voltage level. To effectively implement this, the ministry suggests creating special regional commissions to identify and levy special tariffs on mining centres. 
However, this proposed increase rings alarms bells for the industry. Roman Zabuga, co-owner of BWC Mining, asserts that these measures signal an end for the legal crypto <a href="https://ultramining.com/news/en/texas-residents-challenge-bitcoin-mining-industrys-impact-on-power-grid-and-communities/">mining industry</a> in <a href="https://ultramining.com/news/en/russia-s-energy-ministry-charges-forward-to-legalize-crypto-mining/">Russia</a>. Furthermore, the industry believes this approach discriminates against legal electricity consumers and predicts a potential shutdown due to significant losses. 
Moreover, the ministry is considering additional restrictions for mining farms including a ban on new power grid connections and possible long-term disconnection. This aggressive stance might even escalate to a complete isolation of mining farms from Russia's Unified Energy System, coercing them to switch to their own power generation. This initiative could elevate the final electricity price for these farms by 18-333%, depending on the region. 
Experts and industry insiders voice concerns over these proposals, emphasizing the discriminatory nature against legal mining. They propose a balanced approach that encompasses operational and systematic measures to regulate crypto mining and cryptocurrency circulation in Russia comprehensively. 
Undeniably, this development marks a significant shift in Russia's stance towards cryptocurrency mining, forcing industry players to either bear hefty infrastructure costs or relocate to regions with ample power supply. It remains to be seen how these potential changes could reshape the landscape of cryptocurrency mining in Russia. Subscribe to our Telegram <a href="https://t.me/ultraminingcom">channel</a>! Only the most interesting stuff there

Russian Energy Ministry Targets Crypto Mining with Surge in Tariffs

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