American Wrestling Show in Moscow Might Break US Rules — Here’s What’s Happening

Think of it like this: Imagine your school principal says "nobody can trade snacks with the kid who keeps pushing people on the playground." Then your wrestling club decides to hold a big match at that kid’s house, in his backyard. That’s basically what’s happening here — but with countries, banks, and international law instead of snacks and playgrounds.

What Is Real American Freestyle?

Real American Freestyle (RAF) is a new American wrestling league started in 2025. Here’s what makes it different:

• Real wrestling, not fake: Unlike WWE (where matches are scripted like a TV show), RAF features actual Olympic-style freestyle wrestling — real competition, real athletes, real wins and losses.
• Big names involved: Co-founded by Chad Bronstein (CEO), the late Hulk Hogan (famous pro wrestler), Eric Bischoff (longtime wrestling executive), and Izzy Martinez (wrestling coach).
• Big money backers: Investors include General Atlantic and Left Lane Capital (these are companies that invest in growing businesses).
• TV deal: Fox Nation (part of Fox News) agreed to stream all their events — until recently.

The Moscow Event: What’s Planned?

Key Point: This would be one of RAF’s first international events — and they chose Moscow.

Why This Might Be a Problem: The Sanctions Issue

What Are Sanctions? (ELI5 Version)

Sanctions = "Time-out rules for countries." When a country does something really bad (like invading another country), other countries say: "You can’t use our banks, buy our stuff, or do business with our companies until you stop."

The VTB Bank Connection

• VTB Arena is owned by VTB Arena LLC → owned by BM-Bank → owned by VTB Bank
• VTB Bank is majority-owned by the Russian government
• VTB Bank has been under US sanctions since 2014 (when Russia took Crimea)
• Sanctions say: Americans and American companies cannot do business with VTB Bank — unless they get special permission from the US Treasury Department

Why This Event Might Break the Rules

By holding an event at VTB Arena, RAF would likely be:

1. Paying money to use the arena → money goes to VTB Bank
2. Signing contracts with a sanctioned entity
3. Bringing American athletes/employees to work at a sanctioned venue

IMPORTANT CALL OUT
Two top sanctions experts told ESPN this likely violates US law:

• Richard Nephew — Former State Department sanctions coordinator, now at Columbia University
• Peter Harrell — Former White House senior director for international economics

Both said: The usual exemptions (for things like humanitarian aid or journalism) probably don’t apply here. RAF could apply for a special license — but they won’t say if they did.

What the Experts Say

Richard Nephew (Columbia University / Former State Dept.)

"Even if they’ve got the licenses, that just means they can’t be held liable by the US government. That doesn’t mean that they are not doing something that is deeply problematic."

Peter Harrell (Attorney / Former White House)

• Confirmed exemptions for sports entertainment are very unlikely
• Said specific licenses are possible but RAF hasn’t confirmed they have one
• Treasury Department won’t comment on specific licenses (standard policy)

What Could Happen If They Break the Rules?

What Happened With the TV Partner?

Fox Nation (streaming service, part of Fox News) had agreed to broadcast ALL RAF events — including Moscow.

Timeline:

1. ESPN started asking questions about sanctions violations
2. Thursday: Fox News announced Fox Nation will NOT stream the Moscow event
3. Other RAF events will still be on Fox Nation

Simple Takeaway: When a major media company pulls out immediately after journalists ask legal questions… that’s usually a sign the lawyers said "uh-oh."

What Lawmakers Are Saying (Both Parties Agree!)

Rep. Marcy Kaptur (Democrat, Ohio)

• Co-chair of Congressional Ukraine Caucus
• Senior member of House Defense Appropriations
• "Hosting a sporting event and parading American athletes around Moscow is morally repugnant — and doing so violates US sanctions and will have serious consequences."

Rep. Don Bacon (Republican, Nebraska)

• Member of Congressional Ukraine Caucus
• "Russia, under Putin, is a pariah state that is committing war crimes every day. Every Russian should know that the free world disdains Putin."

Rep. Gregory Meeks (Democrat, New York)

• Ranking Democrat on House Foreign Affairs Committee
• "Sports can serve as a bridge between nations… But Russia’s illegal war against Ukraine is not a mere geopolitical disagreement — it is an act of unprovoked aggression that must not be normalized."

BOTTOM LINE: Democrats AND Republicans agree — this is a bad look for America.

Who’s Behind RAF?

Investors: General Atlantic & Left Lane Capital (major investment firms)

The US Air Force Connection

This week, RAF announced: "The US Air Force is an official partner!"

Air Force Statement (translated to plain English):

• Yes, we have a recruiting partnership with RAF
• We share values like discipline and fitness
• BUT this does NOT mean the Air Force endorses RAF’s business decisions
• We don’t disclose financial details
• Partnership follows ethics rules

Questions this raises: Did the Air Force know about the Moscow event? Does this partnership extend to sanctioned venues?

About VTB Bank and the Arena

VTB Bank’s Role in the Ukraine War

• 2024: Opened branches in occupied parts of Ukraine (serving Russian soldiers & civilians)
• 2023: Putin transferred government stake in warship builder United Shipbuilding Corporation to VTB
• 2014-present: On US sanctions list (Crimea annexation, Donbas invasion)
• June 2026: Treasury fined FTI Consulting $1.05M for doing work for VTB in a Singapore lawsuit

Recent Political Context

• Democratic lawmakers sent a letter to Secretary of State Marco Rubio & Treasury Secretary Scott Bessent
• Accused White House of not issuing new Russia sanctions for 17 months
• VTB has been a known sanctions target for over a decade

Summary: What You Need to Know

THE BIG PICTURE: An American sports league wants to put on a show in a venue owned by a bank that helps fund Russia’s war — and US rules say that’s probably not allowed.

FAQ: Your Questions Answered

Q: Can’t RAF just get permission from the Treasury Department?

A: Yes, they could apply for a specific license (case-by-case permission). But:

• They won’t confirm if they applied or got one
• Experts say sports events rarely qualify
• Even with a license, lawmakers say it’s morally wrong

Q: Why would RAF risk this?

A: Possible reasons:

• Money: Moscow arena, Russian sponsors, new market
• Prestige: "International expansion" looks good to investors
• Miscalculation: They might have thought it was a gray area
• Defiance: Some people oppose sanctions on principle

Q: What happens to the American wrestlers if they go?

A:

• Legally: Individual athletes probably won’t be prosecuted (criminal cases target organizers who knowingly hide violations)
• Reputationally: Could face backlash, lose sponsors, hurt future opportunities
• Ethically: Many see competing in Moscow as legitimizing Putin’s regime

Q: Has the US banned all sports in Russia?

A: No. But:

• NHL, NBA, MLB pulled out partnerships after 2022 invasion
• FIFA/UEFA banned Russian teams from international competition
• WWE canceled events in Russia
• Individual athletes can still compete as neutrals in some Olympic sports — but not at sanctioned venues

Q: Why does the Air Force partnership matter?

A: It creates confusing signals:

• US military partners with a league…
• That league does business with a sanctioned Russian bank…
• That bank helps fund the war the US military opposes…
• Taxpayers might wonder: "Is my money indirectly supporting this?"

Final Thought: This isn’t just about wrestling. It’s about whether American businesses follow the rules — even when there’s money to be made breaking them. The next few weeks will show if RAF moves the event, gets a license, or dares the government to act.

Article based on ESPN reporting by Robert Klemko (Aug 14, 2026) with contributions from researcher Gueorgui Milkov.