Russia's Irkutsk Oblast, a federal region and Russia's main center of trade routes from China, experienced a fourfold increase in energy consumption in 2021 due to mining activities. According to the local news agency TASS on Wednesday. Yevgeny Vechkanov, head of technology and development at local energy company Irkutsk Electric Networks, linked the rapid growth of crypto mining activities to the major crypto rally in 2021. The same is true of China's cryptocurrency ban that was enforced in September.
Oleg Prichko, director of Baikal Energy Company, also attributed the increase in power consumption to increasingly popular local mining activities. He claimed that as many as seven Boeing 737 planes "loaded with mining equipment from China" arrived in Irkutsk in the first two weeks of January. The head of the criminal investigation division of the Interior Ministry's main directorate, Andrei Zhbanov, said some residents of Irkutsk have even set up mining farms in dog houses.
Irkutskenergosbyt, a major local power distributor, has reportedly filed a total of 137 lawsuits. It would involve customers using subsidized electricity to store digital currencies in mining facilities set up in basements and garages. The company expects to recover 63 million Russian rubles ($820,000) in damages. This news comes shortly after a statement by Russian President Vladimir Putin. He said Russia's electricity surplus gives the country a "competitive advantage" in mining cryptos. In November 2021, the Russian State Duma created a working group. The group is focused on working on regulations specifically designed for the crypto mining sector.
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