It's not an outright ban, which is what Russia threatened Telegram with, and the size of the fine implies that Russia's doing this for show. Telegram founder Pavel Durov posted about the decision on the social networking site VK (which he also founded). He claims that the demands of the FSB, Russia's state security organization, are unconstitutional. What's more, they are not feasible from a technological standpoint. After all, providing backdoor access to an app isn't exactly a simple endeavor.

Durov is currently working on appealing the decision. His VK post asks any lawyers interested in this case to contact him; they will choose from the candidates in the next few days. It's not a large fine, to be sure, so Telegram could just pay it, but it's clear that Durov wants to take a stand on the issue of user privacy.