Russia’s demand for video cards used for cryptocurrency mining has increased significantly this year as crypto prices have increased and low electricity rates in some regions have driven illegal coin mining activities.
According to observers interviewed by local press, the financial losses caused by this phenomenon this year are expected to exceed 10 billion rubles in damages registered by Russian authorities in 2024.
Video cards sought for mining, gaming and AI
The growing expansion of illegal mining in Russia was revealed by a surge in sales of graphics processing units (GPUs). It is also known as a video card. These are often used in rig types that Russians install in basements or garages, or they are hidden near currents to use the grid for free.
The so-called “black mining” is one of the most common crypto crimes in the country, with many regions struggling to deal with the consequences, Russia’s Daily Izvestia wrote in an article published Friday.
Using “black miners” who created stolen energy and some Russian subsidies, “Grey Minor” needs strong tips. As a result, their sales almost tripled in the first half of 2025, the newspaper said.
M.Video-Eldorado, a leading Russian consumer electronic retailer, said that demand for GPUs in stores increased by 233% in terms of revenues and units sold during that period. The company is also a leading e-commerce operator, so Spikes are attributed to growing interest in gaming and AI applications.
Miners have contributed similarly, and IT specialist Daniil Arzhakov is convinced. He noted that the stronger Russian ruble made better performance and efficient video cards cheaper and more accessible in the domestic market.
High GPU demand seen as a sign of illegal mining
According to Vadim Kovalenko, an instructor in the esports division at Synergy University, the increase in graphics card sales indicates an increase in illegal mining. He warned that this trend could cause an energy crisis and escalate the size of suspicious businesses.
He fears that unless Russia controls the situation, it may be following in the footsteps of countries like Iran and Kazakhstan. They condemned the illegal mining of power outages and breakdowns in both countries before authorities took steps to curb their activities.
Kovalenko explained in detail:
“Without rules – established tariffs, government control, fighting theft – we expect an increase in blackouts and criminal mining.”
And the Russian government has worked in that direction, both at the federal and local levels. Mining is currently prohibited in around 12 regions, from Siberia to occupied Ukraine. The North Caucasus is booming with illegal mining in Dagestan, Ingshechia and Karachey Cerkesia.
The ban on coin mining in data centers is being advanced in Congress to reserve AI development capabilities, and is also considering proposals to remotely cut legal crypto farms from the grid to limit peak consumption.
Igor Bederov, founder of the Russian company Internet Search, commented:
“Black mining is an attractive activity in many parts of the Russian Federation. The Caucasus remains a leader in the number of black miners, that is, those engaged in the theft of electricity.”
The damage caused by illegal mining facilities last year reached around 10 billion rubles (over $125 million), according to analysts at the Stolypin Institute for Growth. They have not yet published estimates for this year, and the losses could exceed previous totals.
Russia legalized the mining of cryptocurrencies like Bitcoin in 2024. Companies and individual entrepreneurs operating in this sector must register with the Russian tax authorities.
Individuals can mine without registration if they use less than 6,000 kWh of power per month. Failure to register when they exceed that limit will result in large fines and coin forfeitures immediately.