Russian oil industry asks regulators to let them mine crypto using wasted flare gas

Quick Take

  • The Russian oil industry is looking to redirect wasted flare gas into crypto mining near oil production.
  • Regulators are considering industry requests to mine amid a backdrop of legal uncertainty for crypto mining in Russia as a whole. 
  • This is happening amid a major expansion of the Russian crypto mining industry, following an exodus of miners from China.

Russian regulators are considering a push from oil and gas firms, seeking authorization to mine cryptocurrencies using natural gas that is otherwise wasted in oil drilling.

Per an October 20 report from business outlet Kommersant, the Russian Central Bank, Ministry of Industry and Trade and Ministry of Digital Development are discussing authorization for oil industry players who want to use wasted natural gas to power data centers for crypto mining.

"Associated petroleum gas" is natural gas that lies on