Introduction to Crypto Mining in Russia
Crypto mining needs to be treated as a type of export in Russia’s official trade accounts, in accordance with senior Kremlin official Maxim Oreshkin. He argued that enormous volumes of mined digital assets effectively flow abroad even in the event that they never cross a physical border.
Key Takeaways
- Senior Kremlin official Maxim Oreshkin wants crypto mining to be counted as an export.
- Industry leaders say Russia already produces tens of 1000’s of Bitcoins yearly, generating roughly 1 billion rubles per day in revenue.
- Tighter rules now impose as much as 25% corporate tax on mining income.
The Current State of Crypto Mining in Russia
Speaking on the Russia Calling! investment forum, Oreshkin said the industry generates “enormous sums” that remain outside formal statistics despite influencing the foreign-exchange market and the balance of payments. Russia legalized cryptocurrency mining on November 1, 2024, and Oreshkin described the sector as a “latest export item” that the country “doesn’t value thoroughly.” Because crypto will be used to pay for imports through alternative channels, he said, those transactions needs to be counted when the state measures trade flows and currency dynamics.
Industry Figures and Revenue
Industry figures say the size is already material. Oleg Ogienko, chief executive of Via Numeri Group, estimates that Russia’s output of proof-of-work assets this 12 months could equal “tens of 1000’s” of Bitcoins. Sergey Bezdelov, head of the Industrial Mining Association, put production at about 55,000 BTC in 2023 and roughly 35,000 BTC in 2024, citing the network’s halving as a drag on miner rewards. The revenue impact can be significant. Mikhail Brezhnev, co-founder of mining supplier 51ASIC, estimates every day mining income across the country at around 1 billion rubles, a figure he links to Russia’s share of world computing power and Bitcoin’s price.
Regulation and Taxation
Regulators, meanwhile, are tightening oversight. Legal entities and sole proprietors must register with the Federal Tax Service to mine, and hosting providers are listed in a separate registry. Household miners are exempt from registration only in the event that they eat lower than 6,000 kWh a month, though all income have to be reported. Corporate mining is taxed at 25%, while individuals face progressive rates of 13–22%; non-residents pay 30%.
The Problem of Illegal Mining
A recent Russian media investigation revealed that illegal and semi-legal crypto mining is costing the country hundreds of thousands of dollars annually through stolen electricity and unpaid taxes. Broadcaster Ren TV reports that many miners avoid registering their operations to flee high power tariffs and tax obligations, pushing large parts of the industry into the shadows and creating billion-ruble losses for the state budget. Although Russia now permits industrial crypto mining and offers legal status to registered operators, smaller miners are reportedly refusing to comply.
Conclusion
In conclusion, crypto mining is a major industry in Russia, generating enormous sums of cash and influencing the foreign-exchange market. However, the industry shouldn’t be well-regulated, and lots of miners are operating illegally, costing the country hundreds of thousands of dollars in lost revenue. To address this issue, the Russian government should consider implementing stricter regulations and taxation policies to encourage miners to operate legally and declare their income. By doing so, the federal government can tap into the potential of the crypto mining industry and generate significant revenue for the state budget.
