Telegram’s $500M Bonds Frozen in Russia: Revenue Up, Losses Mount

Telegram’s $500 million in bonds are frozen in Russia due to Western sanctions, complicating debt management and buybacks. Despite a 65% revenue surge, Telegram posted a $222 million net loss, mainly from crypto write-downs.

Telegram has encountered a major financial setback as $500 million in bonds remain frozen in Russia due to Western sanctions imposed after the 2022 invasion of Ukraine. The bonds, held at Russia’s National Settlement Depository, are inaccessible to Telegram and complicate its debt buyback and refinancing plans. The freeze is part of broader sanctions targeting Russian financial institutions, affecting numerous foreign-held securities. Telegram has assured investors it will repay the frozen debt at maturity, but logistical challenges persist, especially for Russian bondholders. Despite these obstacles, Telegram’s revenue surged by 65% year-on-year to $870 million in the first half of 2025, driven by advertising, subscriptions, and crypto-linked services. However, the company reported a net loss of $222 million, largely due to a write-down in the value of its cryptocurrency, Toncoin. Telegram’s leadership continues to emphasize its independence from Russian authorities and is considering an IPO, though ongoing investigations and the bond freeze may delay these plans. The situation underscores the risks global tech firms face from lingering financial ties to Russia and the impact of international sanctions on their operations.