Russia excludes crypto mining from incentives

Russia’s Ministry for the Development of the Far East and Arctic announced that cryptocurrency mining will not be included in its upcoming preferential regime. The program, set to launch on January 1, 2027, will instead prioritize data centers and artificial intelligence infrastructure.

Region excludes mining from incentive program

Authorities decided to exclude crypto mining from state-supported industries in the Far East and Arctic regions.

According to Alexey Chekunkov, mining does not meet sustainability criteria due to its dependence on market conditions.

Key points:

• preferential regime starts in 2027
• mining will not receive incentives
• data centers are a priority
• AI infrastructure is a key focus

The government aims to support sectors with predictable energy demand.

Market volatility weakens mining appeal

The decision reflects the volatility of the cryptocurrency market. Mining profitability fluctuates with Bitcoin prices.

Chekunkov highlighted:

• high margins when Bitcoin reached $100,000
• losses and bankruptcies when prices dropped to $50,000

This cyclical nature makes mining less suitable for long-term policy support.

The approach aligns with Ministry of Digital Development of Russia, which already distinguishes mining from data centers.

Investment shifts to AI and data centers

Excluding mining from incentives may reshape regional investment flows.

Expected outcomes:

• reduced attractiveness for mining operations
• increased investment in data centers
• stronger focus on AI infrastructure
• redistribution of energy resources

Companies may also relocate to regions offering more favorable conditions.

Mining loses priority to infrastructure

The move reflects a broader global trend. Governments are prioritizing infrastructure over mining.

Since 2025, Russia has offered benefits to data centers that:

• are officially registered
• do not engage in crypto mining

These facilities receive discounted electricity tariffs.

As a result, the industry is diverging into two segments:

• market-driven crypto mining
• state-supported AI and data center infrastructure

This shift reduces reliance on volatile crypto markets and strengthens long-term infrastructure development.

Read also: Anatoly Aksakov proposes mining in energy-surplus regions