Frozen bonds expose Telegram’s ongoing financial ties to Russia

Around $500 million worth of Telegram bonds have been frozen in Russia as a result of western sanctions, underscoring the messaging app’s continued financial exposure to the country despite founder Pavel Durov’s efforts to distance himself from Moscow, Financial Times reports.

Telegram launched a series of bond offerings in recent years, including $1.7 billion issued in May, largely to buy back existing debt. According to people familiar with discussions with investors, the company repurchased most of the bonds due to mature in 2026. However, Telegram has acknowledged that $500 million of outstanding bonds remain immobilised in Russia’s National Settlement Depository (NSD) as a consequence of sanctions imposed after Russia’s 2022 invasion of Ukraine.

The EU, US and UK imposed asset freezes and other restrictions on the NSD, a move that potentially affects any western organisation with Russian bondholders. For Telegram, the sanctions have complicated debt repayments and buyback efforts, highlighting the extent to which the company remains exposed to Russian capital.

The situation is particularly sensitive for Durov, who has sought to sever ties with his native Russia and has dismissed claims of Kremlin influence as “conspiracy theories.” Telegram declined to comment.

The revelations come as Durov explores a potential initial public offering for Telegram, although those plans have been delayed while he faces legal proceedings in France. Durov, who holds French and UAE citizenship, was placed under formal investigation in Paris in 2024 over the app’s alleged failure to address criminal activity, including child abuse content. He has denied any wrongdoing.

Telegram has told bondholders it intends to repay the frozen bonds at maturity, with the paying agent and depositary then determining whether funds can be transferred to Russian holders. Investors are closely watching the French case for signs it could derail IPO plans, particularly as recent bond offerings allow holders to buy shares in any future listing at discounts of up to 20 per cent.

Financial disclosures seen by the Financial Times show strong revenue growth despite these challenges. Revenues in the first half of 2025 rose more than 65 per cent year on year to $870 million, while premium subscriptions surged 88 per cent to $223 million. However, net losses reached $222 million, largely due to write-downs in the value of toncoin, a cryptocurrency closely linked to Telegram that Durov continues to champion despite a broader crypto market slump.

By Vafa Guliyeva