In an effort to supply Kazakhstan’s miners with electricity, Russia is seeking to increase Kazakhstan’s energy needs as part of an amendment to their bilateral cooperation.
The decision was made as Kazakhstani cryptocurrency miners’ demand for electricity is rising as mining activity picks up.
Russian media outlet RBC revealed the development in a recent story. According to the article, the Russian government has asked for changes to be made to the bilateral energy agreements between the two neighbors. The Russian government’s directive in this regard is reflected in this development.
The amendment aims to make sure that the energy systems of the two nations operate concurrently. Due to the recently designed alteration, Russia will be able to supply Kazakhstan with enough energy, particularly for its bitcoin mining operations.
Through Inter RAO, one of its largest energy holding firms, Russia aims to make this transition easier. Inter RAO is significant in this move because it is the only energy import-export contractor for Russia.
Inter RAO, a Russian company, and the Kazakhstan Electricity Grid Operating Company have signed a business contract (KEGOC).
The agreement will guarantee Kazakhstan’s access to energy on a buy-and-sell basis between the two businesses and beyond.
As a result of China’s crackdown on cryptocurrency mining operations on its soil, mining companies have fled the East Asian nation. Several mining companies migrated to Kazakhstan in search of a more favorable environment.
Nevertheless, Kazakhstan has its share of problems. The nation of Central Asia has experienced a fair share of energy degradation problems. The importance of the Russian alliance is demonstrated by the worsening energy situation in Kazakhstan.
Following an energy crisis in Kazakhstan in January, the government’s energy firm disconnected roughly 200 bitcoin mining operations from the nation’s power grid.
Despite being brief, this divergence demonstrated how vulnerable the nation’s energy industry is.