European Union and Chinese companies are gathering up with applications to start off mining operations in Russia. In spite of having hundreds of cryptocurrency mining factories, Russia boosts of an ample supply of free energy capacity which foreign mining companies are trying to benefit from. RACIB or the Russian Association of Blockchain and Cryptocurrency has already received 40 applications for both individuals and companies who wish to spread their Bitcoin mining wings across the Russian periphery.

Yuri Pripachkin, the association’s president conveyed news regarding the same to Ria Novosti last week. He was quoted by the publication as saying, “in Russia, the number of such factories is already in the hundreds, and our country has energy resources that can be sold to miners effectively.”

Also Read: Russia All Set To Challenge China In Bitcoin Mining Sector

The RACIB association formed back in August this year seeks out to unify owners, blockchain participants, crypto investors as well as miners. Its formation was announced by Herman Klimenko the adviser of President Vladimir Putin over Internet issues. Pripachkin commented on Russian cryptocurrency mining by saying that, “In fact, this is a new market for energy companies, and it is important to prepare a legislative basis, and possible preferential taxation for such foreign investors.”

Arseniy Shcheltsin, the association’s director stated that, “The organization had formed a committee of participants in the mining market with the participation of the representatives of China and Slovakia, who are preparing proposals to increase the investment attractiveness of mining in Russia. The recommendations will be forwarded to the Ministry of Economic Development and the Ministry of Energy of the Russian Federation.” Pripachkin holds the belief that “Russia has every chance of becoming the world capital of mining,” which he wrote on his Telegram channel.

Ministry of Energy revealed that the installed capacity of power plants in Russia totalled 244.1 GW as on 31st December 2016 whereas the maximum load during the same time was 154.3 GW leaving plentiful free capacity. Pripachkin also pointed out that, “when considering the current free capacity of Russian energy companies of about 100 GW, the attracted investments into the economy will be about 1.7 trillion rubles a year.”

Also Read: Russia To Provide Electricity Support For Bitcoin Mining

Shcheltsin stated out to Tass last week that “in Russia, favorable prices for electricity” are responsible for increasing interest in mining but overall “it is about placing containers from several hundred miners with a capacity of 3 MW, which gives a daily yield of 0.5 BTC or approximately 200,000 rubles.”

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