Russia Provides benefits for Cryptocurrency Mining and cheap Energy
2023.02.09 08:04
Russia Provides benefits for Cryptocurrency Mining and cheap Energy
By Tiffany Smith
Budrigannews.com – In recent months, certain regions of the United States and Canada have imposed moratoriums on the crypto mining industry. Investors in crypto mining can now take advantage of Russia’s tax breaks. With direct government support, the brand-new $12 million crypto mining center will open in East Siberia.
The establishment of the crypto mining center in Buryatia, a republic in East Siberia that is a part of the Russian Federation, was announced by the state-owned Corporation for the Development of the Far East, as reported by the local media.
The facility will have 30,000 mining machines, employ 100 people, and use 100 megawatts of power from the grid. It will open in the first half of 2023 and be owned and operated by BitRiver, Russia’s largest provider of crypto-mining colocation services.
The mining center will get a lot of help, like no land and property taxes and a lower income tax rate. The mining operator will see a 50% reduction in their electricity costs.
The legal status of Buryatia, which is known as a “territory of advanced development”—a special economic zone designed to attract investments from both domestic and foreign investors—can provide an explanation for the support provided by the government. The Ministry of the Development of the Far East and Arctics’ Corporation for the Development of the Far East is a subsidiary that supports investment projects.
The Russian government has reversed its position regarding cryptocurrency in general and mining in particular since the outbreak of the war in Ukraine and the subsequent enactment of financial sanctions.
BitRiver and the state-owned gas giant Gazprom Neft formed a partnership in July 2022 to supply BitRiver with electricity produced by the associated petroleum gas. BitRiver began developing a digital infrastructure based on the oil fields in which Gazprom provides crypto mining services using flare gas as part of the collaboration.
