As the energy crisis in the de facto South Caucasus state of Abkhazia worsens, officials are stepping up their efforts to crack down on private bitcoin miners.
Police Take Away Crypto Mining Equipment
According to a government press statement, the Abkhaz State Security Service (SSS) seized about 200 bitcoin mining devices from different places throughout the republic in just four days.
Acting Prime Minister Valery Bganba was notified by SSS head Dmitry Kuchuberia that between December 10 and 13, 194 mining rigs had been taken by police. The raids, which took place in the regions of Gudauta and Gagra, as well as in places like Ochamchira and Sukhum, demonstrated how pervasive illicit mining operations are.
Ten mining devices were also seized, according to the Interior Ministry. Five rigs were recovered from a residence on Voronov Street in Ochamchira, while five more were found in a residential flat in Agudzera. The ministry attested to the fact that every piece of equipment was privately owned.
Mining Continues in spite of the crackdown
Crypto mining operations seem to be going uninterrupted despite the increased raids. The head of Chernomorenergo, a state-owned power firm, Timur Dzhindzholiya, called the energy situation in Abkhazia “critical.” He pointed out that despite policies like rolling blackouts and increased prices for importing electricity from Russia, electricity consumption has not dropped. According to him, this clearly indicates that cryptocurrency mining farms are still operating throughout the area.
Extremely Low Electricity
Acting Prime Minister Bganba has urged acting President Badre Gunba and the parliament to declare a state of emergency in the energy sector due to the worsening power crisis in Abkhazia.
When internet service providers blocked web access for seven hours on December 10 in an effort to lessen the burden that cryptocurrency miners were placing on the grid, the situation grew worse. A day later, the Inguri hydroelectric power station, a vital source of energy for the area, had to temporarily close due to low water levels. Since then, media sites have stated that Abkhazia’s energy usage has escalated to a “critical point.”
Growing hostilities with Russia
Tense political relations with Russia further complicate matters. Although emergency electrical supplies have always been given by Moscow to Abkhazia, recent events indicate that this may no longer be an option. Russia has signaled the end of cheap energy supply by announcing intentions to charge Abkhazia conventional commercial electricity tariffs.
In the past, these emergency power supplies have helped alleviate Abkhazia’s shortages, but such aid is now doubtful as Russia removes itself from the separatist territory, which is internationally recognized as part of Georgia by most Western nations.
The situation is made worse by cryptocurrency mining operations, which presently use 10% to 15% of the republic’s electrical supply, according to Acting Minister of Energy and Transport Dzhansukh Nanba.
Gazing Ahead
The administration of Abkhazia is under increasing pressure to address the country’s deteriorating energy issue. The authorities must strike a compromise between the need for energy security and tougher enforcement measures against unauthorized mining activities, especially because Russia has not provided any immediate relief and unlawful crypto mining is still putting a pressure on the system.
