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Russia Bans Crypto Mining in Moscow and Kursk Until 2032, Operators Face Pressure

La Russie coupe le minage crypto à Moscou et Koursk jusqu'en 2032, les opérateurs sous pression
Russia Bans Crypto Mining in Moscow and Kursk Until 2032, Operators Face Pressure

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Updated 1 hour ago

Moscow no longer wants miners. Prime Minister Mikhail Mishustin signed the decree on July 25, and the restrictions take effect on August 15, 2026. They will last until December 31, 2032. Six and a half years of prohibition for two of the country’s most strategic regions.

The reason is simple: the network is under strain. In the Moscow region, electricity consumption related to mining has surpassed one gigawatt. One gigawatt. The Ministry of Energy had already raised the alarm in April 2026, pointing to an excessive load on local infrastructure and economic benefits deemed too low to justify this pressure. Kursk is in the same situation, although details on consumption levels in this region remain unclear. The government wants to stabilize the network and avoid a capacity shortage that could impact other sectors far more crucial than Bitcoin mining.

No grace period.

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Miners Have Three Weeks to Move

Three weeks is what operators have between the announcement and the enforcement. Moving entire racks of machines to Siberia or elsewhere is not something done over a weekend. The cost of transport, new installations, and electrical connections in sometimes underdeveloped areas — all of this is significant. For large operators, it’s tough but doable. For smaller ones, it’s likely a death sentence.

And there’s a detail that makes things worse: even participating in a mining pool will be prohibited. Not just managing machines physically on the affected territory — simply contributing to a pool from these regions falls under the decree. This closes many doors.

Some might choose to leave Russia entirely. Kazakhstan and Belarus are the most cited destinations, two neighboring countries with more competitive energy costs and less aggressive regulations for now. But “for now” is the key phrase — the region as a whole is gradually toughening its stance on mining.

BitRiver and Igor Runets: Bad Timing

The ban comes at the worst time for Russia’s mining industry because it coincides with a high-profile legal case. Igor Runets, founder of BitRiver — one of the largest mining data center operators in Russia — was placed in pre-trial detention on July 30, 2026. He is accused of fraud. The case: failing to deliver an equipment contract, causing an estimated loss of 1 billion rubles.

A billion rubles. That’s not insignificant.

BitRiver was often cited as an example of what Russia’s mining industry could achieve seriously. Runets had built real infrastructure, with institutional clients and data centers in areas with cheap energy. Seeing its founder in pre-trial detention sends a signal to foreign investors who viewed Russia as a potential destination for industrial mining.

The climate is getting complicated. On one side, regional bans are eating into the available territory. On the other, a legal case involving one of the sector’s most well-known names. Together, it’s a lot.

Russia is also working on deploying its central bank digital currency — the digital ruble. Decree No. 936, its official name, may be part of a broader logic of restructuring the country’s financial and energy ecosystem. It’s unclear if this is a coordinated strategy or just a series of parallel decisions, but the overall direction is clear: Moscow wants to control who uses what and how much electricity it consumes.

For operators remaining in Russia, Siberia becomes the obvious fallback area. Energy costs are lower there, infrastructure exists in some areas, and current restrictions do not apply. But “not yet” looms over all of this.

Runets, meanwhile, has been in pre-trial detention since July 30.

Frequently Asked Questions

When does the crypto mining ban in Moscow and Kursk take effect?

The ban takes effect on August 15, 2026, and lasts until December 31, 2032, according to Decree No. 936 signed by Prime Minister Mikhail Mishustin on July 25.

Who is Igor Runets and why is he arrested?

Igor Runets is the founder of BitRiver, a large mining data center operator in Russia. He was placed in pre-trial detention on July 30, 2026, accused of fraud for failing to deliver an equipment contract causing a loss of 1 billion rubles.

Can miners simply move their operations to Siberia?

Technically yes, but the cost of transport and new installations is high. Large operators can absorb these costs; for smaller ones, relocation is likely too expensive to remain viable.

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Sydney TheCMO

Sydney has 20+ years commercial experience and has spent the last 10 years working in the online marketing arena and was the CMO for a large FX brokerage.

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