Runets emphasized that the evolving regulatory environment is prompting oil and gas companies to reevaluate their strategies, fostering collaboration with Russian crypto miners.
Russia could experience an energy shortage within the next 5-10 years as crypto mining rapidly expands, a senior Kremlin official warned, Russia’s state news agency TASS reports.
Maxim Oreshkin
The warning comes as crypto mining’s energy-intensive operations continue to expand in Russia, capitalizing on cheap power resources.
Russia nearing potential energy deficit
Addressing Russia’s energy future, Oreshkin implied the country may need to reconsider its capacity-building approach to ensure new energy facilities are developed at competitive costs.
Although Russia signaling a favorable stance toward crypto mining, challenges remain for the crypto business. As crypto.news reported, Russia will soon prohibit Bitcoin mining in several regions due to a critical electricity shortage. Per Russia’s Deputy Energy Minister Evgeny Grabchak, regions such as the Far East, southwestern Siberia, and the South are currently experiencing significant energy deficits, making it impossible to provide large power capacities until at least 2030.
“The question is whether we can create energy capacity under new conditions at a price that remains competitive for mining.”
Russia may face an energy shortage in the next 10 years due to rapid Bitcoin mining expansion, a Kremlin official warns.
In early October, BitRiver, a sanctioned crypto mining firm, expressed confidence in Russia’s potential to surpass the U.S. in Bitcoin mining by 2027. BitRiver CEO Igor Runets highlighted that the country’s crypto mining growth rate has matched that of the U.S. in recent years, narrowing the energy consumption gap.
While Russia faces no general energy utilization issues, certain parts of the grid have become energy-deficient due to the increased power demands from Bitcoin mining, Oreshkin said. Southern Siberia, a popular region for crypto mining due to its low electricity costs, has seen significant pressure on its energy infrastructure as mining activity intensifies.
Maxim Oreshkin, deputy head of the presidential administration, raised concerns about potential pressure on Russia’s energy supply, noting that regions such as southern Siberia are already experiencing capacity issues due to increased crypto mining activity.
