Despite the conflict and sanctions, US and EU crypto miners continue to operate in Russia.

The United States and the European Union increased sanctions after Russia began the war in Ukraine in February. Western businesses abandoned their operations in Russia, along with their inventory and workforce.

You’d expect that the Russian cryptocurrency mining industry, which has long been favoured by inexpensive Siberian electricity, would feel the heat as well. U.S. sanctions were imposed on BitRiver, one of the biggest mining businesses in Russia, in April.

© image: coin desk

This had an immediate impact on BitRiver’s operations: Compass, a U.S. mining company, reportedly tried to sell the hardware it had installed in BitRiver’s Siberian plant and stopped doing business with the company. The machinery became bogged down in discussions between the former partners. Then, as CoinDesk reported, the Japanese bank SBI said that it was no longer in Russia, i.e., BitRiver’s farm.

However, no other Russian mining companies have received sanctions to date, and clients from the EU and the U.S. aren’t running away in a panic, according to many in the sector; on the contrary, previous clients have stayed and some new ones have arrived.”Nothing was altered. People don’t worry about these restrictions in the crypto world. Everyone who has been employed here continues to do so, according to Artem Eremin, CEO of mining hardware distributor Chilkoot.

The explanation: Despite other formerly favoured jurisdictions making life more difficult for miners, Russia is still a desirable location for mining due to inexpensive electricity. Last year, China made mining illegal. Early in 2021, Kazakhstan cut off all power to mines for a period of time, and this year, a new tax boosted energy prices for miners.

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