The state-owned energy company Rosseti has announced a new initiative to identify illegal crypto mining farms in the country. This development took place during the St. Petersburg International Economic Forum.
Identifying Illegal Mining Farms
CEO Andrei Ryumin stated that the company is collaborating with Russian mobile operators like Rostelecom and MTS to develop technologies for detecting illegal mining activities. Ryumin explained: "If data is transferred in large volumes, it indicates mining. We are interacting with operators to pinpoint such facilities and understand their legality."
Damages from Black Miners
According to Rosseti, the illegal use of electricity by black miners caused damages exceeding 1.3 billion rubles ($16.5 million) last year. Ryumin believes the real losses are much higher. He added: "We can identify only part of the black mining." Moreover, the tariff rates introduced in early 2025 primarily help in identifying only gray miners who consume smaller amounts of electricity for personal use.
Geography of Illegal Mining in Russia
Rosseti is also keeping track of the geographical distribution of illegal mining in the country. The highest concentration of black miners is found in the North Caucasus republics, particularly Dagestan, and some parts of Siberia. Mining is already banned in energy-deficient regions, but critics argue that these restrictions mainly affect legal enterprises.
The expansion of Rosseti's initiative to identify illegal mining farms and collaboration with telecommunications operators may significantly impact the crypto industry in Russia.
