In 2024, OFAC designated Galaxy Bearings under Executive Order 14024 for exporting high-priority dual-use equipment to Russia, specifically to OFAC-sanctioned Russian companies. The designation resulted in Galaxy Bearings being placed on OFAC’s List of Specially Designated Nationals and Blocked Persons (SDN List), effectively barring them from the U.S. and European financial systems and rendering the company unable to transact in US dollars.

Following its own investigation and enhancement of the client’s compliance program, King & Spalding filed a Petition for Administrative Reconsideration to OFAC in early 2025, seeking to remove the client from OFAC’s sanctions list. On June 30th, 2026, OFAC announced that it removed Galaxy Bearings from the SDN list based on the King & Spalding petition.

The King & Spalding team included Andrew Hruska, Kyle Sheahen, and Shas Das.