American Wrestling Event in Moscow Raises Serious Sanctions Concerns

What’s Happening in Simple Terms

Imagine you’re not allowed to do business with a specific store because the owner did something really bad. Now imagine an American wrestling company decides to hold a big event inside that very store. That’s basically what’s happening here.

Real American Freestyle (RAF) — an American wrestling league — plans to hold a major event on September 5, 2026 at VTB Arena in Moscow, Russia. The problem? The arena is owned by VTB Bank, which is under strict U.S. sanctions because of Russia’s war in Ukraine.

IMPORTANT POINT
U.S. sanctions are like a "do not touch" list. American people and companies are generally forbidden from doing business with sanctioned entities — in this case, VTB Bank and its subsidiaries.

The Venue Problem: Why VTB Arena Is Off-Limits

Who Owns the Arena?

• VTB Arena is owned by VTB Arena LLC
• VTB Arena LLC is a subsidiary of BM-Bank
• BM-Bank is owned by VTB Bank
• VTB Bank is majority-owned by the Russian government

The Sanctions Chain

Think of it like a family tree: VTB Bank (parent) → BM-Bank (child) → VTB Arena LLC (grandchild) → VTB Arena (great-grandchild). Sanctions apply to the whole family.

Who’s Involved in This Event?

The Organizers

• Real American Freestyle (RAF) — Founded in 2025
• CEO: Chad Bronstein
• Co-founders: Late Hulk Hogan, Eric Bischoff, Izzy Martinez
• Investors: General Atlantic, Left Lane Capital

The Star Wrestlers

Total: 9 Americans vs. 11 Russians — most matches pit Americans against Russians.

The Broadcaster (Who Backed Out)

• Fox Nation (part of Fox News Media) — originally agreed to stream ALL RAF events
• Pulled out after ESPN asked questions about sanctions violations
• Statement: "Fox Nation will not be streaming the Moscow episode of Real American Freestyle."

What Do the Experts Say?

Two top sanctions experts reviewed the situation for ESPN:

Richard Nephew

• Senior research scholar at Columbia University
• Former State Department sanctions policy coordinator

Peter Harrell

• Attorney and former White House senior director for international economics

Their Verdict: Likely Violates Sanctions

KEY EXPERT FINDINGS

1. No obvious exemption applies — Humanitarian aid and journalism exemptions don’t fit a wrestling event
2. Specific licenses are possible — Companies can apply for case-by-case permission from Treasury
3. RAF hasn’t confirmed — They declined to say if they applied for or received a license
4. Even with a license, it’s "deeply problematic" — Legal ≠ morally right, says Nephew

Potential Penalties for Violations

• Civil fines (money penalties)
• Criminal prosecution (prison time) — usually for knowing, secret violations
• Reputational damage — loss of partners, sponsors, public trust

Political Reactions: Rare Bipartisan Agreement

Lawmakers from both parties are criticizing the event:

Representative Marcy Kaptur (D-Ohio)

"On top of traveling to do business in a country actively trying to destroy the free democratic nation of Ukraine, RAF’s plan to host a wrestling event at an arena owned by VTB Bank is deeply offensive… Hosting a sporting event and parading American athletes around Moscow is morally repugnant — and doing so violates U.S. sanctions and will have serious consequences."

• Co-founder/co-chair of Congressional Ukraine Caucus
• Senior member of House Appropriations Defense Subcommittee

Representative Don Bacon (R-Neb.)

"I urge that this event not be held in Russia. Russia, under Putin, is a pariah state that is committing war crimes every day. Every Russian should know that the free world disdains Putin and his bombings of innocent civilians."

• Member of Congressional Ukraine Caucus

Representative Gregory Meeks (D-N.Y.)

"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, especially not by U.S.-based sports organizations and certainly not in violation of U.S. sanctions."

• Ranking Democrat on House Foreign Affairs Committee

Background: Why This Matters More Than Just Wrestling

RAF’s Recent Moves

1. 11 events in U.S., 1 in Georgia (the country, not the state)
2. Announced U.S. Air Force partnership — for recruiting and outreach
3. Air Force clarification: Partnership ≠ endorsement of commercial ventures

VTB Bank’s Role in the War

Bigger Picture

• Democratic lawmakers accuse White House of 17 months without new Russia sanctions
• Event seen as legitimizing Putin’s regime during ongoing war
• Normalization concern: Sports events make aggressive regimes look "normal"

What Happens Next? (Step-by-Step)

1. September 5, 2026 — Event date at VTB Arena
2. Before then: RAF must clarify if they have Treasury license
3. If no license: RAF, wrestlers, and any U.S. partners risk penalties
4. Political pressure may increase on Treasury to act
5. Other U.S. sports leagues will watch as precedent
6. Public opinion may affect RAF’s future sponsorships and broadcasts

Summary

The Core Issue: An American wrestling league (RAF) plans a major event in Moscow at an arena owned by a sanctioned Russian state bank (VTB Bank).

Why It’s a Problem:

• Clear ownership chain from sanctioned bank to arena
• No obvious sanctions exemption applies
• Bipartisan congressional opposition
• Major broadcaster (Fox Nation) already withdrew
• Experts say it likely violates presidential order

What We Don’t Know:

• Does RAF have a specific Treasury license?
• Will the event proceed as planned?
• Will U.S. wrestlers choose to compete?
• What penalties might follow?

The Big Picture: This isn’t just about wrestling — it’s about whether American businesses will respect sanctions designed to pressure Russia over its invasion of Ukraine, or whether sports "normalization" creates loopholes.

FAQ: Your Questions Answered

What exactly are U.S. sanctions?

Think of sanctions like a national "do not play with" list. When the U.S. government sanctions a foreign bank, company, or person, it becomes illegal for Americans to do business with them — send money, sign contracts, or provide services — without special government permission.

Can RAF just get permission to do this?

Yes, technically. The Treasury Department can issue specific licenses for individual cases. But RAF hasn’t confirmed they applied for or received one. Even if they did, experts say it would still be morally questionable to profit from a venue owned by a bank helping Russia’s war effort.

Why did Fox Nation pull out?

Fox Nation likely didn’t want the legal risk or bad publicity of streaming an event that might violate federal law. After ESPN started asking questions, they quickly announced they wouldn’t broadcast the Moscow show.

What happens to the American wrestlers if they compete?

If the event violates sanctions and wrestlers knowingly participate, they could theoretically face penalties. But experts say criminal charges are usually reserved for deliberate, hidden schemes — not athletes showing up for a scheduled match. Still, reputational damage is almost certain.

Why does the U.S. Air Force partner with RAF?

The Air Force says it’s for recruiting and public outreach — reaching potential recruits through sports fans. They explicitly stated this doesn’t mean they endorse RAF’s business decisions (like the Moscow event). It’s a marketing partnership, not a political endorsement.

This article is based on reporting by Robert Klemko (ESPN, Aug 14, 2026) and includes contributions from ESPN researcher Gueorgui Milkov.