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Russian oil producers will organize cryptocurrency mining next to their extraction sites to generate electricity from excess gas released in minting coins.
The excess gas, classified as associated petroleum gas, would otherwise be wasted.
Experts say the project can attract foreign investors, mainly from China where authorities have been cracking down on bitcoin mining.
The Ministry of Industry and Trade has recently asked the Central Bank of Russia (CBR) and the Ministry of Digital Development for their feedback about the legitimacy of the undertaking.
State-run Gazprom Neft, Russia's third-largest oil producer, already has a crypto mining project and would like to scale it up but fears a negative reaction from the central bank.
Gazprom Neft launched its crypto mining project at its oil field in Khanty-Mansi Autonomous Okrug.
The company is able to mint 1.8 bitcoins in a month.
The Russian law regulating cryptocurrencies is “On Digital Financial Assets,” which took effect this year.
Additional legislation is needed regarding the circulation of cryptocurrencies in Russia and related operations.
The chairman of the parliamentary Financial Market Committee, Anatoly Aksakov, wants crypto mining registered as an industrial activity and taxed accordingly.
