At the Caucasus Investment Forum held in Mineralnye Vody on May 2, Russian Deputy Energy Minister Pyotr Konyushenko announced that illegal cryptocurrency mining in the North Caucasus region is estimated at around 300 MW.
Mr. Konyushenko noted that the Russian government has imposed a ban on cryptocurrency mining in certain areas. “In Irkutsk Oblast, the ban has significantly reduced electricity consumption from mining and prevented energy shortages. An official ban has been introduced in the Caucasus, but the problem of illegal mining persists there. Detection of illegal mining sites is proceeding very actively. We estimate the power consumption of this activity at about 300 MW,” he said.
Energy companies are cooperating with law enforcement agencies and mobile operators to detect illegal mining sites based on power load profiles and internet traffic frequency. According to the deputy minister, this method “makes it possible to identify relatively accurately and disconnect illegal miners, then transfer the files to law enforcement agencies.”
The Russian government has banned cryptocurrency mining in Dagestan, Ingushetia, Kabardino-Balkaria, Karachayevo-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People's Republics, as well as Zaporozhye and Kherson Oblasts from January 1, 2025 to March 15, 2031. Additionally, a complete ban on mining has been imposed in the south of Irkutsk Oblast. In some areas of Buryatia and Zabaykalsky Krai, the activity is prohibited during peak energy consumption periods.
