$1.7 billion bonds with no Russian investors, Telegram founder tries to downplay sanctions controversy

Telegram founder Pavel Durov directly responded to market rumors yesterday, denying that the company relies on Russia in its capital structure. This clarification comes after reports the day before that Telegram’s $500 million bonds in Russia were frozen due to Western sanctions, raising investor concerns. Durov’s response aims to dispel market worries but also exposes the real difficulties faced by this communications giant.

Founder’s Core Clarification

Durov emphasized three key points in his response:

• The recent $1.7 billion bond issuance involved no Russian investors
• The old bonds issued in 2021 have been mostly repaid and are not a current issue
• Bondholders are not the same as shareholders; Telegram’s sole shareholder remains him

The core intent of these statements is clear: to sever external associations between Telegram and Russian funds.

The Fundamental Difference Between Bonds and Equity

It’s important to understand a commonly confused concept. Bondholders and equity owners have completely different roles in corporate governance:

Durov’s clarification emphasizes that bondholders cannot influence company decisions. This sends a signal to the market: even if certain special interests are involved in the bonds, they cannot alter Telegram’s independence.

What’s the Situation with the Frozen $500 Million Bonds

We cannot ignore the background events. According to the latest news, Telegram’s $500 million bonds in Russia have been frozen by the national settlement depository due to Western sanctions. The issues with this bond include:

• The bonds are due for repayment but cannot be transferred directly to Russia because of sanctions
• Payment agents and custodians need to decide whether funds can flow to Russian holders
• This creates practical obstacles for Telegram’s debt redemption

Telegram has stated it will repay its debts on schedule, but how to bypass sanctions remains uncertain. This is why Durov quickly clarified that the newly issued $1.7 billion bonds do not include Russian investors—he is reassuring new investors that they won’t face the same sanctions-related difficulties.

Financial Context: Growth and Challenges

According to relevant information, Telegram’s financial situation is complex:

Highlights

• Revenue in the past six months increased by 65% year-over-year, reaching $870 million
• This reflects growth in advertising and other income sources

Challenges

• Net loss of $222 million due to a decline in Toncoin value
• Indicates that investments in their blockchain ecosystem face difficulties

This financial performance points to a key issue: while Telegram’s core business is growing, the gains from Toncoin and the Ton ecosystem are shrinking. This perhaps explains why Telegram needs to issue bonds to raise additional funds.

Two Levels of Market Impact

From an investor perspective, Durov’s clarification has two implications:

Short-term: Alleviating fears about Russian fund control. For institutional investors considering investing in Telegram bonds or participating in its ecosystem, the background of Russian funds could pose regulatory risks. Clarifying this helps stabilize market sentiment.

Long-term: Preparing for an IPO. Reports indicate Telegram is preparing for an IPO. Before going public, it is necessary to eliminate any doubts that could trigger regulatory scrutiny. Dependence on Russian funds would be a key concern for US or European regulators, so early clarification is essential.

Summary

While Telegram founder’s clarification is straightforward, it also reflects that the company is facing multiple challenges: Western sanctions, uncertainties in the Ton ecosystem, and upcoming IPO scrutiny. The frozen bonds reveal that even a founder like Durov cannot fully avoid geopolitical risks.

The key point is understanding the difference between bonds and equity—the former is a financial instrument, while the latter involves real control. This clarification is significant for investors but does not directly resolve the company’s actual difficulties (such as the frozen bonds). Future focus should be on how Telegram manages debt issues under sanctions and progresses toward its IPO.