A senior Kremlin adviser has proposed classifying cryptocurrency mining as an export for Russia's trade accounts, arguing that the significant volume of mined Bitcoins and associated import payments should be officially recorded.
Crypto Mining's Impact on Trade and Finance
Maxim Oreshkin, a senior Kremlin official, has stated that mined cryptocurrency effectively flows abroad and should be accounted for as an export, thereby impacting Russia's balance of payments and foreign-exchange market. He believes the industry generates substantial sums that currently fall outside formal statistics, despite their influence on the economy.
Russia legalized cryptocurrency mining on November 1, 2024. Oreshkin described the sector as a "new export item" that the country "doesn't value very well." He emphasized that because cryptocurrency can be used to pay for imports through alternative channels, these transactions should be counted when the state measures trade flows and currency dynamics.
Industry Estimates and Revenue
Industry leaders provide significant estimates for Russia's crypto mining output. Oleg Ogienko, chief executive of Via Numeri Group, estimates that Russia's production of proof-of-work assets could amount to "tens of thousands" of Bitcoins this year. Sergey Bezdelov, head of the Industrial Mining Association, further estimated production at approximately 55,000 Bitcoins in 2023 and roughly 35,000 Bitcoins in 2024, attributing the reduction in 2024 to the network's halving event, which decreases miner rewards.
The financial impact of mining is also considerable. Mikhail Brezhnev, co-founder of mining supplier 51ASIC, estimated daily mining income across the country to be around 1 billion rubles. He linked this figure to Russia's share of global computing power and the price of Bitcoin (BTC). Brezhnev asserted that since mined coins can be directly used to settle import bills, there is a clear case for recording these flows in official statistics.
Regulatory Framework and Challenges
Regulators have implemented oversight measures for the cryptocurrency mining sector. Legal entities and sole proprietors are required to register with the Federal Tax Service to engage in mining, and hosting providers are listed in a separate registry. Household miners are exempt from registration if their monthly consumption is below 6,000 kWh, although all income must still be reported. Corporate mining operations are taxed at a rate of 25 percent, while individuals face progressive rates of 13 to 22 percent, and non-residents are subject to a 30 percent tax.
Despite these regulations, a recent Russian media investigation highlighted that illegal and semi-legal crypto mining operations are costing the country millions of dollars annually through stolen electricity and unpaid taxes. Broadcaster Ren TV reported that many miners avoid registration to evade high power tariffs and tax obligations, driving significant portions of the industry underground and resulting in billions of rubles in losses for the state budget.
While Russia now permits industrial crypto mining and offers legal status to registered operators, smaller miners are reportedly reluctant to comply. Major firms like BitRiver and Intelion operate within the legal framework. However, many independent operators are accused of engaging in practices such as meter manipulation, bribery, and secret agreements with utility workers. Consequently, households and legitimate businesses are reportedly bearing the cost of this stolen electricity.