Russia exports its cheap excess power to Kazakhstan, this also have miners staying in Russia

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avatar of @daje10
8 months ago - 2 minutes read

In a move, not many saw, Russia has struck a deal to provide electricity to Kazakhstan and its mining sector.

Why now?

It appears to be yet another side of the perfect storm that semes to be ravaging most of the world with energy prices and inflation running wild. As Russia is becoming more and more isolated due to sanctions from the west, they are left with very few countries that even would consider picking up the phone when they see a Russian number calling.

But as Russia no longer exports gas and oil to the EU. And the extra pipelines going to China are no way near complete, Russia is in a very strange position. Unlike the rest of the world, they have a very large energy surpluses. And nowhere to use it.

If you then take into account that Kazakhstan got a large portion f the Chinees miners that migrated with the Crypto ban there. Kazakhstan has faced another problem. Lack of power and an electrical grid not really equipped to deal with all the miners. And in this case, 1 + 1 actually makes 2. 

Russia now can export some of its excess power, and Kazakhstan´s grid gets some much-needed relief.

Cheap power

And this cheap excess power Russia has is also said to be the reason that the Miners in Russia from the US, EU, and other places have more or less decided to stay put. 

This capacity, comparable to BitRiver’s, is in high demand among clients from Germany, the U.K., the U.S., Canada, Iran, Japan, New Zealand and other countries as well as local Russian miners, said MEATEC’s head of foreign relations, Alexander Swid

“No client is leaving,” Swid said. This is despite the Rubel being much stronger than at the start of the war. And the electricity is paid in Rubel. 

Do you think this will make Russa a new crypto superpower? Or will it be yet another reason for the west to put even more sanctions on crypto? Pleas sound off in the comment section down below. If you would like to support me and the content I make, please consider following me, reading my other posts, or why not do both instead.

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