Russia offers support for cryptocurrency mining in Siberia, details inside

  • Russia is now offering tax breaks for those who want to invest in cryptocurrency mining.
  • Since the war in Ukraine and subsequent financial sanctions, the Russian government has reversed its stance on cryptocurrency.

According to a report by the local Russian media agency RBC on February 8, the state-owned Far Eastern Development Corporation announced the establishment of a crypto-mining center in Buryatia, a republic in eastern Siberia and one of Russia’s sub-republic. the Union.

The new facility will house 30,000 mining machines, employ 100 people, and draw 100 megawatts from the grid. It will open in the first half of 2023. Trover, the largest Russian provider of co-location services for crypto mining, will own and operate the center.

Russia offers subsidies with additional benefits

The mining center will benefit from a variety of incentives, including no land and property taxes and a lower income tax rate. The mining company’s electricity costs should be cut in half.

The legal status of Buryatia as a land of advanced development, special economic zone incentives to attract national and foreign investment, explains government support. In addition, the Far East Development Corporation is a subsidiary of the Ministry of Development of the Far East and the Arctic, which specializes in supporting investment projects.

Dmitry Khamroev, President of Buryatia KRDV, said:

“These are zero land and property taxes, insurance premiums reduced to 7.6%, and a low income tax rate. After the resident’s utility is connected to the unified national electricity grid, the electricity tariff will be reduced by almost half. For an energy-intensive company, this is one of the most important support measures.” .

Since the outbreak of the war in Ukraine and subsequent economic sanctions against Russia, the Russian government has reversed its stance towards cryptocurrency in general, and cryptocurrency in particular.

Gazprom Neft, the state-owned gas giant, entered into a partnership with BitRiver in July 2022. The former will supply BitRiver with electricity generated from associated petroleum gas. BitRiver has developed a digital infrastructure based on oil fields as part of the collaboration. In addition, Gazprom will provide flaregas cryptocurrency mining services.

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