Telegram's developer Pavel Durov had asked his lawyers not to attend the court hearing because he said he saw the verdict as a foregone conclusion.
The free application, which lets people exchange messages, photos and videos in groups of up to 5,000 people, has attracted more than 200 million users since its launch in 2013. It claims that "Telegram is more secure than mass market messengers like WhatsApp and Line".
A VPN is a technology used to get around restricted internet services and improve anonymity. Telegram has refused to comply with the demands, citing respect for user privacy.
Dmitry Peskov, spokesman for President Vladimir Putin, whose team uses Telegram to arrange briefings for reporters, said on Friday that Russia would not have made a decision to block the service if the company had fulfilled the requirements of Russian law.
In his Twitter account, Pavel Durov, a Russian entrepreneur and Telegram's CEO, said that Telegram "will stand for freedom and privacy".
In fact, the text, voice and video chat app is so ubiquitous in Russian Federation that local government officials, agencies and even President Vladimir Putin's press office routinely use it for both formal and informal communications. At any given moment, a government can crash their stocks by threatening to block revenue streams from its markets and thus force these companies to do unusual things (remember how a year ago Apple moved iCloud servers to China).
Telegram has been subject to blocks before in other countries, most notably Iran and Indonesia.
A POPULAR Russian messaging app utilized by ISIS terrorists has been blocked by a Russian courtroom following requires by authorities to share its encryption information. The government had said the app was used to spread "radical and terrorist propaganda".
Mind you, it's not clear whether Russian Federation actually can stop Telegram, even if it's technically banned.