Telegram’s $500 Million Russian Bond Freeze Exposes Lingering Moscow Ties
Sanctions on National Settlement Depository immobilise half a billion in debt despite Durov’s efforts to distance platform from Kremlin
Half a billion dollars worth of Telegram bonds remain frozen in Russia’s central securities depository, revealing the messaging platform’s continued financial exposure to Moscow despite founder Pavel Durov’s repeated efforts to sever ties with his native country. The disclosure highlights how Western sanctions on Russian financial infrastructure continue to create complications for international companies with legacy exposure to Russian capital markets.
According to sources familiar with Telegram’s discussions with investors, approximately $500 million of the company’s outstanding bonds have been immobilised in Russia’s National Settlement Depository (NSD) following asset freezes imposed by the European Union, United States, and United Kingdom in the wake of Russia’s 2022 invasion of Ukraine. The sanctions, which potentially affect any Western organisation with Russian bondholders, are particularly awkward for Durov, who has consistently criticised speculation about ties to the Kremlin as “conspiracy theories.”
The frozen debt represents a portion of Telegram’s broader bond programme launched in 2021. The company issued a series of bonds in recent years as part of a refinancing strategy, culminating in a $1.7 billion offering in May 2025 that attracted major institutional investors including BlackRock and Abu Dhabi’s Mubadala Investment. While Telegram successfully repurchased most bonds maturing in March 2026 using cash reserves and proceeds from the new issuance, the $500 million trapped in the NSD remains beyond the company’s immediate reach.
Telegram responded to reports of the frozen assets by emphasising that its 2021 bond issuance included only “a small number of Russian buyers” and that those bonds have largely been repaid. The company insisted its May 2025 offering had “zero Russian buyers” and that it complies fully with the 2022 sanctions regime, making regular payments to bondholders via the NSD as required for Western companies operating under the sanctions framework.
However, the revelation underscores the extent to which Telegram’s financial structure remains entangled with Russian capital, despite Durov’s public distancing from Moscow. The billionaire entrepreneur, who also holds French and UAE citizenship, relocated Telegram’s operations to Dubai and has been vocal in dismissing allegations of cooperation with Russian authorities. Yet the company’s debt architecture reveals a more complex relationship with Russian financial markets than its public positioning might suggest.
The frozen bonds add another layer of uncertainty to Telegram’s already complicated path toward a potential initial public offering. The company has been preparing for a listing that could value it at over $30 billion, offering bond investors the option to convert their debt into equity at a discount of up to 20% when the IPO materialises. However, those plans remain on hold due to ongoing criminal proceedings against Durov in France, where he faces investigation over allegations that Telegram failed to adequately moderate criminal activity on the platform.
Telegram’s financial performance has been robust despite these challenges. The company reported revenue of $870 million in the first half of 2025, marking a 65% increase year-over-year, with projections to reach $2 billion in full-year revenue. Approximately $300 million of that income stemmed from “exclusivity agreements” linked to Toncoin, Telegram’s associated cryptocurrency. The platform reached 1 billion monthly active users in March 2025, with over 15 million paying subscribers—double the previous year’s figure.
Yet profitability remains elusive. Telegram posted a net loss exceeding $220 million in the first half of 2025, primarily driven by a write-down of its Toncoin holdings, which depreciated by 69% during the period. The company sold over $450 million worth of Toncoin during the first six months of the year, representing approximately 10% of TON’s market capitalisation. Despite this volatility, Telegram maintains it will repay the frozen debt at maturity, leaving the paying agent and depository to determine whether payments can flow to Russian investors under the sanctions regime.
The situation reflects broader challenges facing technology companies navigating geopolitical tensions. While Telegram has positioned itself as a neutral platform championing digital rights and free expression, its financial infrastructure reveals vulnerabilities to jurisdiction-specific risks tied to its origins and early funding arrangements. The NSD asset freeze demonstrates that even companies with globally distributed user bases cannot fully insulate themselves from traditional sovereign and sanctions-related exposures.
For Durov, the frozen bonds represent more than a financial inconvenience—they underscore the difficulty of completely severing ties with Russia while maintaining business relationships that predate the current geopolitical climate. As Western sanctions on Russia continue to expand and deepen, Telegram may face further complications in managing its Russian-linked debt obligations, potentially complicating its eventual path to public markets and raising questions about due diligence in international capital raising.
The company has notified bondholders it intends to fulfill its repayment obligations when the debt matures, though the mechanics of such payments remain subject to evolving sanctions regimes and regulatory interpretations. Meanwhile, Durov continues to await resolution of his French legal proceedings before pursuing the long-anticipated IPO that could finally provide liquidity to the platform’s early investors and bondholders—those whose assets aren’t frozen in Moscow, at least.
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