Russian demand for video cards used for cryptocurrency mining saw a significant increase this year as higher crypto prices and low electricity rates in some areas spurred illegal coin mining activities.
Financial losses caused by the phenomenon this year are expected to exceed the 10 billion rubles in damages registered by Russian authorities in 2024, according to observers interviewed by the local press.
Video cards sought for mining, gaming and AI
The growing spread of illegal mining in Russia has become evident by the surging sales of graphics processing units (GPUs). Also known as video cards, these are often used in the type of rigs Russians install in basements and garages or hide near electric substations to tap into the grid for free.
The so-called “black mining” is among the most common crypto crimes in the country, and a number of regions are struggling to deal with its consequences, the Russian daily Izvestia wrote in an article published Friday.
Both “black miners,” who mint on stolen energy, and “gray miners,” taking advantage of subsidized electricity in parts of Russia, need the powerful chips. And as a result, their sales have almost tripled in the first half of 2025, the newspaper revealed.
M.Video-Eldorado, a leading Russian consumer electronics retailer, said demand for GPUs in its stores grew by 233%, in terms of revenues and units sold during the said period. The company, also a major e-commerce operator, attributes the spike to increased interest in gaming and AI applications.
Miners have contributed as well, IT specialist Daniil Arzhakov is convinced. He noted that the stronger Russian ruble has made the better-performing and more efficient video cards cheaper and more accessible on the domestic market.
High GPU demand seen as a sign of illegal mining
Rising graphics card sales are an indication of growing illegal mining, according to Vadim Kovalenko, a lecturer at the eSports Department of the Synergy University. He warned that the trend could cause an energy crisis and escalate the scale of shady businesses.
He is concerned Russia may be moving in the footsteps of countries like Iran and Kazakhstan, unless it gets the situation under control. They blamed illegal mining for blackouts and breakdowns in both countries, before authorities took measures to curb the activity.
Kovalenko elaborated:
“Without rules — established tariffs, government control, and fight against theft — power outages and an increase in criminal mining are expected.”
And the Russian government has been working in that direction, both on federal and local level. Mining is now prohibited in about a dozen regions, from Siberia to occupied Ukraine, including the North Caucasus, where illicit mining is booming in Dagestan, Ingushetia and Karachay-Cherkessia.
A ban on coin mining in data centers is advancing in parliament to reserve their capacities for AI development, and a proposal to remotely disconnect even legal crypto farms from the grid, to limit consumption in peak hours, is also under consideration.
Igor Bederov, founder of the Russian company Internet Search, commented:
“Black mining is an attractive activity in a number of regions of the Russian Federation. The Caucasus remains the leader in terms of number of black miners, that is, those who are engaged in the theft of electricity.”
The damages inflicted by illegal mining facilities last year amounted to around 10 billion rubles (over $125 million), according to analysts at the Stolypin Institute for Economy of Growth. They are yet to publish their estimate for this year, and the losses are likely to exceed the previous total.
Russia legalized the mining of cryptocurrencies like Bitcoin in 2024. Both companies and individual entrepreneurs operating in the sector are required to register with the Russian tax authority.
Private individuals can mine without registration if they use less than 6,000 kWh of power monthly. Failure to register when they exceed that limit will soon result in hefty fines and coin confiscation.
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