HomeCryptoRussia considers new energy tariffs as Chinese crypto miners relocate

Russia considers new energy tariffs as Chinese crypto miners relocate

The Russian Ministry of Energy is seeking to introduce particular electrical energy tariffs for cryptocurrency miners following migration of the trade into the nation from close by China.

Russian Energy Minister Nikolai Shulginov introduced Wednesday that the authority is engaged on a new framework to distinguish tariffs between basic utilization and cryptocurrency mining, native information company RBC reported Oct. 13.

Shulginov stated that cryptocurrency miners in Russia shouldn’t devour electrical energy at residential tariffs, stating:

“We can’t let miners capitalize on the situation at the expense of low residential electricity tariffs […] In order to maintain the reliability and quality of power supply, we believe it is necessary to prohibit miners from consuming electricity at residential tariffs.”

Some Russian areas have reportedly confronted explosive development in energy consumption, allegedly resulting from Chinese miners exiting the nation amid a nationwide crackdown on crypto.

Russia’s Irkutsk area, positioned about 1,700 kilometres from China, has reportedly seen its energy consumption charges exceed final yr’s by virtually 160%. Irkutsk Governor Igor Kobzev pointed to “avalanche-like growth” of energy consumption within the jurisdiction, blaming unlawful crypto mining exercise worsened by the exodus of miners from China.

One of the largest areas of Siberia, the Irkutsk area is wealthy with energy sources, internet hosting a number of massive hydroelectricity stations in cities like Irkutsk, Ust-Ilimsk and Bratsk. The area is residence to some crypto mining information facilities by BitRiver, the nation’s largest crypto mining colocation providers supplier.

Related: Data heart operators have ‘no problem’ with new Russian crypto crackdown

BitRiver founder and CEO Igor Runets advised Cointelegraph that the corporate totally helps the most recent initiative by the ministry of energy:

“It is fair and economically sound. Moreover, it will help miners enter the legal field, so the state can take the first step towards regulating the industry, which will ultimately lead to transparency of the entire industry.” 

Runets stated that the corporate pays for its information heart electrical energy at enterprise buyer charges, paying “2.5 or 3 times more than individuals.”

Russia has grow to be one of many high places for Bitcoin (BTC) mining exercise following the Chinese miner capitulation. According to the Cambridge Bitcoin Electricity Consumption Index, Bitcoin miners in Russia account for 11% of the full world BTC mining hash charge distribution, bested solely Kazakhstan and the United States.