The cryptocurrency mining industry has faced moratoriums in parts of the United States and Canada in recent months. Now, Russia offers tax incentives to those who want to invest in such activity. With direct government support, a new $12 million crypto mining hub is set to open in eastern Siberia.
According to local media, the state-owned Far Eastern Development Corporation announced the launch of the cryptocurrency mining center in Buryatia, a republic located in eastern Siberia and part of the Russian Federation.
The facility will have 30,000 mining machines, hire 100 workers and consume 100 megawatts from the electrical grid. It will open in the first half of 2023 and will be owned and managed by BitRiver, Russia’s largest cryptomining setup service provider.
The mining center will enjoy a broad set of incentives, from zero land and property taxes to a reduced rate of income tax. Electricity prices will be halved for the mining operator.
Government backing is explained by Buryatia’s legal status, which is an “advanced development territory,” a special economic zone encouraged to attract domestic and foreign investment. The Far East Development Corporation is a subsidiary of the Ministry of Far East and Arctic Development and is specialized in supporting investment projects.
Since the outbreak of the war in Ukraine and the financial sanctions that followed, the Russian government has backtracked on its stance against cryptocurrencies, particularly mining. In July 2022, state-owned gas giant Gazprom Neft partnered with BitRiver to supply it with electricity generated from oil gas. As part of the collaboration, BitRiver began developing a digital infrastructure at the oilfields where Gazprom supplies flue gas for cryptocurrency mining facilities.
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