In the most recent months, the cryptocurrency mining business has faced moratoriums in various regions of the United States and Canada. Those who wish to invest in cryptocurrency mining can now take advantage of the tax benefits that Russia offers. The new crypto mining facility in eastern Siberia, which will cost $12 million and get direct government backing, is set to open soon.

Buryatia is a republic located in eastern Siberia and is part of the Russian Federation. According to local media, the state-controlled Far Eastern Development Corporation has announced the start of the cryptocurrency mining facility in Buryatia.

The plant will have 30,000 mining equipment, employ one hundred people and use one hundred megawatts of electricity from the local electrical system. It will open in the first half of 2023 and will be owned and operated by BitRiver, which is the leading provider of cryptocurrency mining placement services in Russia.

The mining center will be eligible for a wide range of benefits, including exemption from land and property taxes, as well as a reduction in the income tax rate. For the mine operator, there will be a fifty percent decrease in the cost of energy.

Buryatia’s legal status as an “advanced development territory,” a special economic zone that is encouraged to attract domestic and international investment, could provide an explanation for the aid the government is providing. The mission of the Far East Development Corporation, a wholly owned subsidiary of the Ministry for Far East and Arctic Development, is to provide financial backing for various investment projects.

Since the start of the war in Ukraine and the financial sanctions that followed it, the Russian government has modified its stance against cryptocurrencies, especially with regard to mining. This change occurred as a result of the conflict in Ukraine. Gazprom Neft, a state-owned gas company, and BitRiver entered into a cooperation in July 2022 so that Gazprom Neft could provide BitRiver with energy produced from oil gas. As part of the collaborative effort, BitRiver has begun creating a digital infrastructure in the oil fields where Gazprom supplies flue gas for cryptocurrency mining operations. These fields are located in Russia.