Energy Sector Assesses Damage from Mining Activities in the North Caucasus, 2026/02/19 15:34:58

In the regions of the North Caucasus Federal District, Russian law enforcement agencies shut down 128 mining farms last year—three times more than the previous year. The damage from electricity theft exceeded 1 billion rubles, marking a 42.6% increase compared to 2024, as reported by “Rosseti North Caucasus.”

The total amount of stolen electricity reached 141.7 million kWh, which is 5.85% higher than in 2024, according to energy officials. In Ingushetia, the volume increased from 32.4 million to 82.3 million kWh, in North Ossetia—from 0.8 million to 2.4 million, and in Karachay-Cherkessia—from 12.2 million to 13.2 million.

In Dagestan, the amount of stolen electricity decreased from 86.4 million to 43 million kWh, while in Kabardino-Balkaria it fell from 2.1 million to 0.8 million, and in Stavropol Krai to 0.1 million kWh.

Dagestan emerged as the leader in the number of discovered mining farms with 94, followed by Ingushetia with 19 farms. In Karachay-Cherkessia, energy officials identified six sites, in Kabardino-Balkaria—four, in North Ossetia—three, and in Stavropol Krai—only two.

Miners are employing increasingly sophisticated methods of concealment: they relocate equipment frequently and alter connection points. Energy officials lament that significant police resources are required to combat these miners.

Mining is officially prohibited by the Russian government in six regions of the North Caucasus Federal District—except for Stavropol Krai. The ban took effect on January 1, 2025, and is formally set to expire on March 15, 2031, but it may be extended at any time.

Earlier, Nikolai Shulginov, chairman of the State Duma Committee on Energy, stated that the total damage caused to the Russian economy by illegal miners is estimated at around 20 billion rubles annually.