Born into the family of a Cossack ataman, Panteleyev and his father both were keen yachtsmen, living in Saint Petersburg. With the Russian Revolution in 1917 Panteleyev volunteered with a group of sailors of the Workers' and Peasants' Red Navy, and was soon given his own commands. He took part in the defence of Petrograd during the Russian Civil War, and in the suppression of the Kronstadt rebellion in 1921. Undertaking further studies and naval courses, Panteleyev specialised in navigation and served on a number of ships of the Black Sea Fleet, and then as a staff officer of the Northern Military Flotilla. After command of submarine brigades in the Black Sea, Panteleyev was appointed chief of staff of the Baltic Fleet, in anticipation of future hostilities. He served during the Soviet-Finnish War, and after the German invasion of the Soviet Union, was tasked with the Soviet evacuation of Tallinn and then took charge of the naval defence of Leningrad. Success in this area was followed with an appointment to take charge of the and establish a safe supply of fuel for the armies operating in the region. Having achieved this, he then was appointed commander of the , with the important task of defending and keeping open the approaches to the Northern ports. He successfully arranged the escort and defence of the Arctic convoys, and made airfields and support available to British bombers carrying out attacks on the "Tirpitz". For this service he was made a Companion of the Order of the Bath by the British.