The Russian Federation has announced plans to launch a crypto mining center shortly. The value of the mining center project is $12.3 million (900 million rubles). According to a report by the Russian media channel RBC, this massive data processing facility will be located in Buryatia, a republic in eastern Siberia.
JSC Corporation working for Development of the Far East and the Arctic (KRDV), will oversee the cryptocurrency mining venture. KRDA is a government-affiliated company that operates under the Russian Ministry for Development and is the President’s Plenipotentiary Representative working for the Far Eastern Federal District of the Russian Federation.
The project will need 30,000 mining machines and 100 workers, and 100 megawatts of power. The project may start operations in the first half of 2023. BitRiver, Russia’s largest provider of cryptocurrency mining colocation services, will own and operate the facility.
Russia to Provide Financial Assistance for Its Newly Launched Crypto Mining Initiative.
Per a press release by KRDV, Bitriver-B, a subsidiary of Russia’s largest mining company Bitriver, has initiated project construction by establishing essential infrastructure and power facilities. The cryptocurrency mining operation is expected to be completed in the first half of 2023.
Related Reading | Record-Breaking Bitcoin Mining In Q1 2023 By CleanSpark
KRDA was established in 2012, and since then working on development projects. KRDV has a mission of the economic and infrastructure development of the Russian Far Eastern Federal District. It supports investment initiatives across multiple industries, such as tourism, energy, and healthcare. Additionally, the government intends to provide support for the cryptocurrency mining center.
KRDV aims to significantly subsidize the operating expenses of the mining farm located in Buryatia through various government support programs. This support will come in the form of reduced income tax rates, exemptions on land and property taxes, and other benefits.
Moreover, the 100-megawatt mining center will only need to pay half the cost of its electricity tariff. These concrete forms of government support are based on Buryatia’s status as a “Priority Development Area,” It serves as a way to attract domestic and international investors.
The mining center will benefit from various incentives, including zero land and property taxes and a reduced income tax rate. Furthermore, the electricity costs for mining operations will be reduced by half.