Telegram Struggles to Manage $500 Million in Debt After Bonds Frozen in Russia

Telegram, the messaging app co-founded by Pavel Durov, is facing challenges due to its financial exposure in Russia, Bloomberg reported on January 6.

According to a Bloomberg report, $500 million in Telegram bonds were frozen in Russia’s central securities depository as a result of Western sanctions imposed after the invasion of Ukraine.

Despite Durov’s attempts to distance himself from Russia, these sanctions complicate Telegram’s debt repayments.

The company had initially paused bond purchases after the US sanctioned Russia’s largest oil producers in October. The bonds in question are part of a $1.7 billion offering to buy back existing debt, which Telegram had partially completed before the sanctions, Bloomberg wrote.

While Telegram has managed to avoid some of the effects of sanctions, its reliance on Russian capital remains significant. The frozen funds have created a financial burden, limiting the company’s ability to fulfill its debt obligations in full.

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Amid these difficulties, Durov is still working on Telegram’s plans for an initial public offering (IPO), which have been delayed due to ongoing legal proceedings in France, according to Bloomberg.

Telegram has experienced significant revenue growth, with projections for $2 billion in revenue by the end of 2025.

However, Bloomberg claimed that the company’s net losses for the first half of the year reflect issues with its cryptocurrency holdings and the downturn in the crypto market. Despite this, Telegram remains on track to meet its financial targets, including increasing premium subscriptions and advertising revenue.

Previously, it was reported that Ukraine’s National Cybersecurity Coordination Center has decided to prohibit the installation and use of the Telegram messenger on the official devices of government officials, military personnel, security and defense sector workers, as well as operators of critical infrastructure enterprises, according to the National Security and Defense Council (NSDC).

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