EU and Chinese crypto mining companies race to set up shop in Russia

The Russian Federation has received over 40 application from cryptocurrency mining firms based in the EU and China.
The Russian Federation has recently revealed that they’ve received dozens of application from cryptocurrency mining firms who are hoping to establish their operations in Russia. While Russia already has an impressive network of cryptocurrency mining firms, the country’s electricity supply can support several more.

According to The Russian Association of Blockchain and Cryptocurrency (RACIB), they have already received 40 applications from individuals and entities, from either China or the European Union (EU), who are looking to set up their operation in the country. The information was confirmed by the RACIB president, Yuri Pripachkin, last week. RACIB was established earlier this year and aims to invest in various Russian cryptocurrency participant, including owners, miners, investors, and those involved in ICOs. The agency was founded upon president Vladimir Putin's Internet adviser’, Herman Klimenko’s, request.

Pripachkin added that the international industry’s interest in Russia will serve to open a brand new and profitable market for the country’s energy industry. However, despite the promise of this new opportunity, Pripachkin emphasized the importance of a proper legislative and regulatory framework regarding the proposed new market.

RACIB’s director, Aseniy Scheltsin, stated that the agency established a committee with expertise in the mining industry. Among these included participants and representatives from the Chinese and Slovakian market who are currently working with RACIB to attract large mining operations to the country. According to Scheltsin, all applications and recommendations will be brought to the attention of the Ministry of Economic Development as well as the Ministry of Energy of the Russian Federation.

On his Telegram channel, Pripachkin expressed his enthusiasm of the prospect by stating that he firmly believes that Russia could become the world hub of cryptocurrency mining.

Russia’s infrastructure seems more than capable of handling the extra strain that additional mining operations might place on the country’s energy supply. Russia’s Ministry of Energy confirmed that the country increased its power plants’ capacity last December, which currently totals to 244.1 GW. So far, even at maximum load, the country’s total electricity never succeeded 154.3 GW. According to Pripachkin, Russian currently has a surplus of electricity which averages at around 100 GW on a day to day basis. The ready surplus could attract lucrative investments to the country, which RACIB has predicted to reach up to 1.7 trillion rubles per year.

Scheltsin confirmed that Russia’s sound electrical infrastructure could make the country a veritable hotspot for cryptocurrency mining. Scheltsin stated that the RACIB expects that future investments could yield up to 200,000 rubles per day.