For years, the Russian Federation has been interacting with the crypto-blockchain industry. Despite interacting with the sector, Russia has still proven to be very skeptical about fully adopting crypto-blockchain technology.
Russia is now among the countries that have welcomed cryptocurrencies more than the majority of the other developed countries.
Still, Russia is hesitant when it comes to giving cryptocurrencies a legal status. This is the reason why cryptocurrency payments and cryptocurrency trading firms do not have a legal presence in Russia.
Regardless of the skepticism by the Russian Government and the regulators in regard to legalizing cryptocurrencies, the sector continues to thrive in the country.
Gazprom Neft Enters Cryptocurrency Industry
Just recently, a major announcement has been made by Gazprom Neft’s executives. Gazprom Neft executives have confirmed that they have joined hands with BitRiver, forming a contract.
The primary purpose of the partnership will be to provide hosting services in terms of mining operations for cryptocurrencies. It has been claimed by both entities that they are aiming to launch mega crypto mining projects.
Gazprom Neft is a state-owned gas giant from Russia, while BitRiver is the largest colocation services supplier for cryptocurrency mining in Russia.
As part of the agreement, the responsibility of Gazprom would be to provide the partners of BitRiver with electricity for their data centers. Gazprom will be using petroleum gas for the generation of electricity and powering the data centers in return.
While Gazprom will work on the generation of electricity, BitRiver would be investing its resources and manpower in the development of digital infrastructures.
These digital infrastructures will preside over the oil fields. The oil fields are managed by Gazprom and they use these fields to generate flare gas.
Using the flare gas, Gazprom will perform the duty of keeping the cryptocurrency mining centers managed by BitRiver, supplied with enough power.
Vadim Yakovlev Talks about Gazprom’s Latest Move
Vadim Yakovlev, the deputy CEO at Gazprom has clarified exactly what they aim to achieve with their partnership with BitRiver.
He clarified and emphasized that it is not part of their business model to interact with digital assets at all. However, their aim is to optimize the consumption of energy plus the sources of such energy as much as possible.
They want to be able to offer renewable energy to any entity and BitRiver seems to have understood their goal. They always wanted to try out new ways of generating and utilizing petroleum gas to decrease their carbon footprint as much as possible.
BitRiver will be able to benefit tremendously from the flare gas Gazprom is generating at locations that currently do not have an infrastructure to support gas transmission.