Russia Central Bank Says Bitcoin Mining Strengthens Ruble Despite Tax Losses

TLDR

• Russia’s Central Bank Governor Elvira Nabiullina confirmed Bitcoin mining helps strengthen the ruble, though the exact impact is hard to measure
• Deputy Chief of Staff Maxim Oreshkin wants crypto mining classified as export activity in Russia’s trade accounts
• Russia legalized crypto mining on November 1, 2024, but illegal operations still cost the government billions in lost tax revenue and stolen electricity
• Russia ranks second globally for Bitcoin mining with over 16% of the world’s hashrate during summer months
• Major banks like Sberbank are offering crypto-linked investments worth 1.5 billion rubles, but using cryptocurrency for payments remains banned

Russia’s Central Bank has confirmed that Bitcoin mining contributes to the ruble’s strength. Governor Elvira Nabiullina made the statement while answering questions about the sector’s influence on foreign exchange markets.

The acknowledgment marks a shift in how Russian officials view cryptocurrency mining. For years, the central bank treated crypto primarily as a financial risk.

Nabiullina cautioned that measuring mining’s exact impact remains difficult. Much of the industry still operates in gray areas outside traditional reporting channels.

Deputy Chief of Staff Maxim Oreshkin argued at the VTB Russia Calling forum that crypto mining should be classified as an export activity. He described the sector as a new export item that Russia doesn’t value properly.

Oreshkin said mined digital assets effectively flow abroad even without crossing physical borders. This creates foreign currency inflows without relying on conventional trade infrastructure.

Industry estimates suggest Russia produces tens of thousands of Bitcoins annually. Daily mining revenue reaches approximately 1 billion rubles.

The Industrial Mining Association reports Russia ranks second globally for mining. The country accounts for over 16% of the world’s hashrate during summer months.

Production dropped from roughly 55,000 BTC in 2023 to around 35,000 BTC in 2024 after the network halving. The halving event reduced mining rewards by 50%.

Legal Framework Fails to Stop Underground Operations

Russia legalized crypto mining on November 1, 2024. The new law requires legal entities and entrepreneurs to register with the Federal Tax Service.

Individual miners who consume less than 6,000 kWh monthly are exempt from registration. Corporate mining faces a 25% tax rate while individuals pay 13-22% based on progressive rates.

Despite legalization, illegal mining continues to drain government resources. Broadcaster Ren TV reported that fear of high taxes and electricity costs drives many miners underground.

Annual budget losses reach billions of rubles as operators manipulate meters and bribe utility workers. Recent investigations uncovered widespread electricity theft across multiple regions.

A St. Petersburg operator bypassed meters since 2018, costing the grid half a billion rubles. Police in Dagestan found a farm hidden inside coolant tanks.

An Omsk Thermal Power Plant employee accepted 500,000 rubles in bribes to facilitate grid theft. Authorities arrested the worker during an ongoing investigation.

Banking Sector Enters Crypto Space

Sberbank, Russia’s largest lender, is testing decentralized finance tools. The bank offers regulated crypto-linked investments totaling 1.5 billion rubles in structured bonds and digital financial assets.

These products tie to Bitcoin, Ethereum, and broader crypto portfolios. Deputy Chairman Anatoly Popov confirmed active dialogue with the Bank of Russia on integrating crypto services within regulated frameworks.

State Duma Committee Chairman Anatoly Aksakov recently reaffirmed the country’s strict payment bans. He declared at a TASS press conference that cryptocurrencies will never become money within Russia.

Aksakov said crypto can only be used as an investment instrument. Any payments must be made in rubles under current law.

Central Bank Governor Nabiullina has repeatedly called for bans on crypto exchanges and token trading. This stance comes despite Russia recording $376.3 billion in incoming crypto transactions between July 2024 and June 2025.

First Deputy Chairman Vladimir Chistyukhin emphasized that laws governing cryptocurrency transactions must be passed quickly. The central bank also supports tokenization solutions to grant foreign buyers access to Russian company shares as a potential sanctions workaround.

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