The Affray at the Monaco Grand Prix was a confrontation between Tony Stark (wearing his Iron Man Mark III armor) and Ivan Vanko (wearing his Whiplash Mark 1 harness) at the Circuit de Monaco in Monte Carlo.
After obtaining a forged passport, Vanko traveled to Monaco and infiltrated the Grand Prix by posing as a safety worker named "Boris Turgenov". While attending the Grand Prix as the owner of a car in the race, Stark decided to pull his driver out and operate the Formula One racer himself.
After the race had begun, Vanko stepped onto the track and activated his harness, which burned away his jumpsuit. He then attacked car #6, slicing the front end of the vehicle in half and causing the car to cartwheel down the track. Witnessing the attack on live television from the bar of a nearby hotel, Pepper Potts and Happy Hogan rushed to the racetrack, crashing onto the course in Stark's Rolls-Royce Phantom Coupé and driving against traffic in order to deliver Stark's mobile Iron Man armor.
Vanko next attacked Stark's #11 car as it rounded the corner, severing the entire front end of the vehicle and causing it to flip down the track and crash into the wreck of car #6. As Vanko approached Stark's car, three more racers rounded the corner and crashed behind him, cartwheeling down the track as well. When Vanko reached Stark's crashed car, he sliced the wreck in half in an attempt to kill Stark, but discovered the vehicle empty; Stark then attacked Vanko from behind, hitting him in the head with a piece of debris.
Vanko proceeded to beat back Stark with his electrified whips until Stark collided with a car and spotted fuel leaking from the vehicle's gas tank. Stark waited while Vanko approached, diving away when Vanko swung at him, causing Vanko to ignite the fuel and blow up the car. Moments later, Hogan reached the scene, crashing the Rolls-Royce into Vanko and pinning him to the track wall, but Vanko survived the impact and assaulted the car, cutting it to pieces. Potts finally managed to deliver Stark's briefcase to him, and Stark suited up in his Mark V armor.
Stark then shoved the Rolls-Royce down the track and away from Vanko and fired repulsor blasts at him which Vanko deflected with his whips. Vanko then tangled Stark in his whips and used them to hurl Stark into the Rolls-Royce before dragging him to the ground and weakening his suit with an electrical surge. Stark retaliated by further tangling himself in Vanko's whip, using it to get close enough to batter Vanko and flip him onto the asphalt. Stark then ripped Vanko's power source from his chest, deactivating his harness as riot police moved in to secure Vanko.
Even as he was dragged away by police, Vanko laughed at Stark, insisting that Stark "will lose." Identifying Vanko's power source as a rudimentary Arc Reactor, Stark crushed the device, destroying it.
Stark later confronted Vanko in a French prison, and learned that Vanko was the son of Anton Vanko, who had worked with Stark's father to develop the Arc Reactor. Vanko revealed that he had not meant to kill Stark, but only to wound him and destroy his reputation of invincibility, opening the floodgates to more attacks on Stark by others.
Vanko also revealed his knowledge of Stark's palladium poisoning, calling it a "painful way to die."