A new policy will prohibit cryptocurrency mining in regions such as Irkutsk, Buryatia, and Zabaykalsky Krai during the fall-winter period until 2031. Restrictions are also planned for regions in the Caucasus, Donbas, and Novorossiya.

The decision aims to prevent power shortages during the cold season, when businesses and households require additional energy resources.

Regions Affected by the Ban

The ban will apply to Irkutsk Oblast, parts of Buryatia, and Zabaykalsky Krai. Additionally, mining restrictions are proposed for the following regions until 2031:

Caucasus: Dagestan, North Ossetia-Alania, Ingushetia, Chechnya, Kabardino-Balkaria, and Karachay-Cherkessia.
Donbas and Novorossiya: Donetsk and Luhansk People’s Republics, Zaporizhzhia, and Kherson Oblasts.

Rationale and Implementation

The government seeks to ensure that limited energy resources are prioritized for essential needs during periods of high demand. The Ministry of Energy has been tasked with devising mechanisms to enforce the ban and redirect energy previously consumed by miners.

Official Statements

Deputy Prime Minister Alexander Novak commented on the initiative, noting that while mining contributes positively to energy consumption by balancing generation capacity and reducing specific costs, it becomes problematic when it monopolizes energy resources, preventing new consumers from accessing the grid.

“Energy consumption by mining can be beneficial where there is surplus capacity, but it becomes a challenge when it depletes all available resources and blocks access for new consumers,” Novak stated in an interview with RBC.