Russia’s state power giant Rosseti turns to Bitcoin mining for economic growth

Rosseti, the largest grid operator in Russia, is getting into Bitcoin mining to tackle economic challenges and put its unused power supply centers to work.

On Jan. 27, the company announced plans to use underloaded electricity hubs for mining, saying it could help maximize energy use, generate more revenue, and boost the economy.

The company’s exact words were: “The Rosseti Group is the largest grid company in Russia and can act as the operator for coordinating the placement of mining infrastructure.”

Rosseti uses mining to boost electricity revenue

The company is looking to connect energy-hungry mining operations to its free power supply centers, especially in areas with low electricity demand. These facilities, often running below capacity, are now being viewed as a gateway to drive up grid loads and add to Rosseti’s tariff income.

Rosseti said, “In this regard, the company is also interested in developing mining since this will facilitate the use of free capacity, increase the load of power supply centers, increase the company’s tariff revenue, as well as the development of the economy and the growth of tax payments.”

The timing of Rosseti’s push into Bitcoin mining isn’t random. In December 2024, President Vladimir Putin made headlines at the VTB Investment Forum in Moscow by describing Bitcoin as “unstoppable.”

His statement comes as Russia faces increased pressure from Western sanctions, especially after $300 billion in reserves were frozen following the Ukraine conflict.

“Who can ban Bitcoin? Nobody. And who can prohibit the use of other electronic means of payment? Nobody,” Putin said at the forum. He criticized the dependence on the US dollar, saying their dominance is often weaponized for political gains. “Why accumulate reserves if they can be lost so easily?” Putin added.

Now the Kremlin is taking proactive steps to integrate crypto into Russia’s financial system. New laws now exempt cryptocurrency transactions from value-added tax (VAT) and cap income tax rates on digital asset profits.

While Bitcoin mining does have a big economic opportunity, it has already strained Russia’s energy resources. Putin himself shared his concerns in June 2024, when he said that mining consumes around 1.5% of Russia’s total electricity supply.

He called this “worrying,” and in response, Russia introduced tough new regulations in December. Mining was banned in ten regions where energy resources were critically low, with seasonal restrictions added in parts of Siberia during peak winter months.

Putin warned that while mining is recognized as a legitimate activity, “timely decisions” are necessary to prevent it from overwhelming the national grid.

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