Crypto mining in Moscow and parts of Kursk will be off-limits for more than six years starting July 1, 2026. Authorities blame the move on worsening energy shortages aggravated by ongoing conflict and prioritize power stability over crypto profits. Violators could face heavy fines and even prison time under new legislation moving fast in the State Duma.
Energy Crunch Spurs Extended Mining Restrictions
The Ministry of Energy's recent draft decree targets Moscow, Moscow Oblast, and eight districts plus Lgov city in Kursk Oblast. Currently, Moscow’s crypto mining consumes around 1 gigawatt of power, with forecasts projecting electricity demand from data centers many of them mining operations to hit 3.6 gigawatts by 2032. That’s a massive 17% slice of the region's peak energy load. On a national scale, data centers in Russia are expected to require 15.3 gigawatts within five years, intensifying concerns over energy allocation.
Wartime Power Shortages Shape Policy as Crackdowns Rise
Kursk’s growing energy crisis is tied directly to the strain caused by the Russia-Ukraine conflict, according to Governor Alexander Khinshtein. Moscow and other regions have already imposed bans on mining, with at least 13 regions restricting operations either temporarily or indefinitely after Russia formalized crypto mining laws in 2024. Criminal penalties are being introduced to enforce compliance, including fines up to 2.5 million rubles ($35,000) and jail sentences as long as five years for unregistered mining. The shift reflects a toughening stance as power management dominates policy agendas.
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