Russian officials have moved closer to a six-year shutdown of crypto mining in Moscow and nearby regions, with the ban expected to last until at least 2032. According to TASS, Deputy Energy Minister Evgeniy Grabchak confirmed that a government commission overseeing the electric power industry has backed a proposal to ban mining in the city of Moscow, the surrounding Moscow Oblast, and parts of the Kursk region. Local officials raised the issue in late April, and the final decision will take their positions into account, as reported by RBC. The decision seeks to manage energy consumption and protect the energy infrastructure in these economically vital areas.
The Russian energy ministry has identified at least 65 data processing centers connected to the grid across Moscow and the Moscow region, with a total capacity of 734 megawatts. As reported by RBC and Bits.media, regional Energy Minister Sergey Voropanov has argued that crypto mining brings little benefit to the local economy and cited positive results from earlier restrictions elsewhere. Moscow Oblast Governor Andrey Vorobyov and Moscow Mayor Sergey Sobyanin have both proposed limits on mining in their jurisdictions. The mining facilities mushroomed in regions offering cheap electricity, leading to local energy deficits that prompted authorities to ban mining in 13 regions until spring 2031.
According to a Kommersant report, the government is weighing a mining ban across 19 regions within Moscow's power distribution zone, which would curb activity across the Central Federal District, described as the country's main economic core zone. In the Kursk region, Governor Alexander Khinshtein has proposed restricting mining in eight districts and the city of Lgov, with his administration citing power supply problems worsened by the war in neighboring Ukraine. The planned limits aim to free up reserve capacity and save electricity for residential and industrial customers. The Central Federal District is Russia's most economically advanced administrative region, home to about 40 million people, with Moscow at its heart.
The State Duma has advanced a bill on first reading that would criminalize illegal mining, with penalties including fines of up to 2.5 million rubles (approximately $35,000) for operators whose illegal facilities generate large income or cause major financial damage. As reported by RIA Novosti and Prime, the legislation allows prison sentences of up to 5 years for mining tied to organized crime groups, along with forced labor and additional fines. The draft law also grants authorities the power to confiscate property from illegal operators, with different penalties based on the scale of the offense and damages caused. The bill contains provisions for reduced or lifted penalties if damages are compensated.
Russia legalized cryptocurrency mining in 2024, with officials describing the country's energy resources and climate as advantages. However, after miners clustered in places with cheap electricity, energy deficits followed in several areas, prompting authorities to ban mining in 13 regions until spring 2031. According to reports, fewer than 1,500 of an estimated 50,000 mining businesses have registered so far, despite individuals and companies being able to mine legally if they register and pay taxes. Russia currently ranks among the top countries worldwide for Bitcoin mining, yet the low registration rate highlights compliance challenges in the sector.
