Telegram Faces $500 Million Bond Freeze in Russia as Western Sanctions Disrupt Payments

Telegram Faces $500 Million Bond Freeze Amid Western Sanctions and Russian Ties

Telegram is confronting a fresh financial and geopolitical challenge as roughly $500 million of its bonds remain frozen in Russia, caught up in Western sanctions targeting the country’s financial system following the 2022 invasion of Ukraine.

How Did Telegram’s Bonds Get Stuck

The affected securities are held at Russia’s National Settlement Depository (NSD), which has faced sanctions from the European Union, the United States, and the United Kingdom.

These measures have blocked key settlement channels, leaving the bonds immobilised.

Telegram has stated it will repay the debt at maturity, but whether payments can reach Russian holders depends on the depository’s compliance with sanctions.

This freeze is part of a broader disruption impacting foreign companies with exposure to Russian capital markets.

Telegram, despite its global operations, continues to feel the effects of historical financial links to Moscow.

Growth Amid Legal and Geopolitical Pressures

Even as the bond freeze complicates its debt strategy, Telegram reported strong revenue growth for the first half of 2025.

Revenues rose over 65% year-on-year to $870 million, fueled by advertising, premium subscriptions, and activity on its TON blockchain.

Cash reserves reached $910 million, and the company may be on track for $2 billion in total revenues for the year, with up to $300 million attributed to TON-related on-chain activity.

Telegram remains a lean operation with a small staff, yet it continues to serve over 1 billion users globally.

Founder Pavel Durov, who relocated the company’s headquarters to Dubai and has publicly distanced Telegram from Russia since 2014, emphasises the company’s independence.

Durov has said, defending Telegram’s free speech stance and resistance to government pressure,

“These claims of influence are conspiracy theories.”

Does The Bond Freeze Affect Future Plans

Telegram has a history of issuing international bonds to refinance debt and support expansion, including buybacks for debt maturing in 2026.

The current freeze complicates these operations, creating uncertainty for investors and bondholders, who may have the option to convert debt into shares at a discount in a potential IPO.

The freeze arrives as Durov faces legal proceedings in France over content moderation issues, which could delay any public offering.

Telegram continues to navigate scrutiny over hosting unregulated content, though Durov denies deliberate wrongdoing.

Global Sanctions Continue to Ripple Through Markets

The NSD sanctions highlight how lingering Russian financial exposure can affect global companies.

Western restrictions on Russian infrastructure have frozen hundreds of billions of dollars in assets, creating complications for international investors and companies that rely on Russian counterparties for bond settlements.

While some funds have been partially released in limited cases, the process remains complex.

Financial Strategy and Crypto Ambitions

Telegram has sought greater exposure to US investors and strengthened its TON blockchain integration, removing Ethereum and other chains from its wallet to boost activity on its native network.

While TON’s value had fallen, it has recovered by over 19% in the past month, reaching $1.92, offering some optimism for future revenues and investor confidence.

Despite these hurdles, Telegram continues to present itself as a global technology company aiming for long-term growth and potential public listing, balancing revenue growth against regulatory and geopolitical risks.