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    Former Ohio Speaker Householder Faces Sentencing in Bribery Scheme

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    Larry L. Householder, former speaker of the Ohio House of Representatives, awaits sentencing on Thursday after being convicted of participating in a racketeering conspiracy that resulted in a bailout for two struggling nuclear power plants.It is, federal prosecutors say, perhaps the biggest public corruption scandal in Ohio’s history, a three-year conspiracy in which one of Ohio’s biggest corporations funneled some $60 million to one of the state’s most powerful politicians in exchange for a $1.3 billion bailout.And those investigators say they are only coming to the end of Act I.On Thursday, the former Republican speaker of the Ohio House of Representatives, Larry L. Householder, will be sentenced in federal court in Cincinnati for violating racketeering and bribery laws.The outlines of the charges have been known since his arrest, with four other men, three years ago: FirstEnergy Corporation, a Fortune 500 electric utility based in Akron, funneled the $60 million though various nonprofit entities. In return, Mr. Householder rammed a law through the state legislature that gave the company the bailout for two troubled nuclear power plants. Prosecutors have recommended a sentence of up to 20 years.But, as described early this year in a 26-day trial, the alliance between the utility and Mr. Householder, 64, was far more than a bribery scandal. Among other things, prosecutors and experts say, it was an almost cinematic example of how the dark money that pervades both state and federal politics slithers unseen from donor to beneficiary.It is also a cautionary tale about how state legislatures — second-rung political bodies that are often run by part-time politicians, but increasingly dealing with issues of national importance — are at least as prone to manipulation by special interests as their Washington counterparts.David DeVillers, who oversaw the federal investigation as the U.S. attorney in Cincinnati until early 2021, said in an interview that the gusher of dark money was crucial to the plot and an issue well beyond Ohio.“Any time you have a supermajority, whether it’s Republicans or Democrats, and industries that are based on passing laws like marijuana or sports gambling or energy, it’s a formula for corruption,” he said.In a memorandum on sentencing last week, Mr. Householder’s lawyer, Steven L. Bradley, said that his client had not admitted wrongdoing, and that Mr. Householder genuinely believed that the legislation enacting the bailout “was an important piece of legislation, which is why he advocated and voted for it.” The blare of publicity and the ignominy of conviction, Mr. Bradley wrote, had left Mr. Householder “a broken man.” In an email, Mr. Bradley said he plans to “vigorously pursue an appeal with the hope of winning a new trial.”Mr. Householder, a onetime insurance agent from an impoverished rural county in southeast Ohio, had been House speaker from 2001 to 2004. He left his legislative seat because of term limits and faced a federal corruption investigation after leaving the post then, but was not charged.After returning to the legislature in 2016, Mr. Householder secretly spent millions in 2018 to support Republican candidates for 21 seats in the State House — more than a fifth of the 99 seats — who would back his insurgent campaign to again become House speaker. He spent more millions on a media campaign to push the nuclear bailout law to passage, and then tens of millions on a scorched-earth crusade to undermine a ballot initiative that threatened to undo it.By the time he was arrested in July 2020, Mr. Householder was soliciting secret contributions from others seeking legislative favors — and plotting to change the State Constitution’s term limits clause to extend his tenure by 16 years.At each step, a web of political action committees and dummy nonprofit organizations called 501(c)(4)s, after their place in the federal tax code, ensured that money fueling the schemes could not be traced to Mr. Householder or FirstEnergy.“The scope of the conspiracy was unprecedented,” prosecutors wrote in their sentencing memorandum. “So was the damage it left in its wake, both in terms of its potential financial harm to Ohioans and its erosion of public trust.”In a wiretap disclosed during the trial, a lobbyist charged in the affair, Neil Clark, boasted to undercover F.B.I. agents about his handiwork.“I spent close to $20 million in the last eight weeks, $20 million,” he said. “FirstEnergy got $1.3 billion in subsidies, free payments.”He later added: “So what do they care about putting in $20 million a year for this thing?”FirstEnergy sought a bailout for two nuclear power plants, including this one in North Perry, Ohio.Amy Sancetta/Associated PressFirstEnergy had sought state subsidies for two nuclear power plants on the shore of Lake Erie for years when Mr. Householder returned to the State House in 2016. The company claimed that renewable energy and cheaper fuels had made both plants unprofitable.Mr. Householder left little doubt that he wanted his old job as speaker back. After his 2016 election, FirstEnergy’s chief executive at the time, Chuck Jones, invited him to fly on the company’s private jet to attend the inauguration of President Donald J. Trump.Over several days of socializing at high-end restaurants, prosecutors said, they discussed a deal: Mr. Householder needed money to regain the speaker’s post when its occupant left office in 2018. The company needed a legislative solution to its nuclear power woes.What began with a handshake became a multimillion-dollar political operation, with the money laundered through nonprofit groups allowed by the tax code to conceal donors’ names.“They can give as much or more to the (c)(4) and nobody would ever know,” the lobbyist, Mr. Clark, told Mr. Householder in another wiretapped conversation. “So you don’t have to be afraid.”Chuck Jones in 2015, when he was FirstEnergy’s president and chief executive.Phil Masturzo/Akron Beacon Journal, via Associated PressNeil Clark, a lobbyist, was also charged in the affair.Jonathan Quilter/The Columbus Dispatch, via USA Today NetworkWeeks later, Mr. Householder established a 501(c)(4) called Generation Now. Other nonprofits, both new and old, were rolled into the scheme: a PAC called Hardworking Ohioans, two new nonprofits and many more.Rivers of anonymous money — most, but not all, from FirstEnergy — began to flow. In one typical transaction, Generation Now shunted $1 million of FirstEnergy donations to the newly formed Coalition for Growth and Opportunity, whose only reported officer was a Kentucky lawyer who oversaw other nonprofits. The Coalition for Growth and Opportunity donated $1 million to its separate PAC, which spent it on media campaigns supporting Republicans friendly to Mr. Householder and opposing unfriendly ones.And so it went: At least $3 million spent in 2018 to elect Republicans backing Mr. Householder’s speaker ambitions. Nearly $17 million more in 2019 on a successful media campaign supporting House Bill 6, the legislation bailing out FirstEnergy nuclear plants.Clean energy advocates and the natural gas industry opposed the $1.3 billion measure, which propped up two unrelated coal-fired plants and solar energy projects besides the $1 billion nuclear subsidy. And when they began collecting signatures for a ballot initiative to overturn the bailout, FirstEnergy devoted another $38 million to quash that effort.The money paid for a private detective and bullies to disrupt signature gatherers, as well as a saturation advertising campaign claiming that China was “quietly invading our energy grid” with the help of opponents of the bailout.Backers considered it money well spent. When House Bill 6 became law in July 2019, Mr. Jones, the FirstEnergy chairman, sent a picture of Mount Rushmore to Samuel C. Randazzo, then the chairman of the state Public Utilities Commission. Supplanting the mountain’s four presidents were faces of the two men and executives at FirstEnergy and another utility.Below that, prosecutors said, was an all-capital-letters caption that extolled their political clout with a common sexual vulgarity.Meanwhile, Mr. Householder’s Generation Now nonprofit was already plowing new ground. In a wiretapped conversation in 2018, Mr. Householder said he was “expecting big things in (c)(4) money from payday lenders,” an industry that has lobbied federal and state officials against regulating high-interest loans to the poor.For some, the cost of exposure has been heavy.FirstEnergy fired its top executives. Later, it paid $234 million in fines to federal agencies and surrendered another $115 million in ill-gotten gains after admitting to large-scale fraud.Mr. Clark, the lobbyist, died by suicide in 2021 after publishing a book that alleged a lifetime of dirty deals in state politics.Federal prosecutors say their inquiry is continuing, although they have not said where it might lead.F.B.I. agents removing items from the home of Samuel C. Randazzo, then the Ohio Public Utilities Commission chairman, in 2020.Adam Cairns/The Columbus Dispatch, via Associated PressIn what was, in effect, a plea bargain with federal prosecutors, FirstEnergy confessed that it had given Mr. Randazzo $4.3 million “to further FirstEnergy Corp.’s interests” on nuclear and other issues in 2019, weeks before Gov. Mike DeWine named him to head the state Public Utilities Commission.Mr. Randazzo, who denies wrongdoing, has not been charged.Court filings and related lawsuits have referred to Governor DeWine and Lt. Gov. Jon Husted, who have said they were unaware of the illegal payments. Both supported House Bill 6, and Mr. DeWine benefited from hundreds of thousand of dollars in get-out-the-vote support from FirstEnergy during his 2018 election campaign. The company also donated $75,000 to his daughter’s failed bid for a local elective office.FirstEnergy, meanwhile, faces investigation by the federal Securities and Exchange Commission and shareholder lawsuits.And in the five states where it owns electric utilities, utility commissions are likely to require tens of millions of dollars in refunds to customers, in part involving scandal-related spending.On Wednesday, the company said in a statement that it “has accepted responsibility for its actions related to House Bill 6 and has taken significant steps to put past issues behind us.”“Today we are a different, stronger company with a sound strategy and focused on a bright future,” it added.Mr. DeVillers, the former U.S. attorney, said that nonprofits like those central to the FirstEnergy scandal have been largely ignored by law enforcement. Enforcement of restrictions in the federal tax code on 501(c)(4) groups has been lax.Dave Anderson, the communications director of the Energy and Policy Institute, a watchdog group that follows the energy industry, said that might now change.“This is a case that really illustrates how they can be used for criminal malfeasance,” he said, referring to nonprofits. Now, he said, lawyers who told clients that 501(c)(4) groups are safe conduits for secret cash may be “holding their breath and thinking, ‘Maybe the convictions will be thrown out.’” More

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      Biden Administration Engages in Long-Shot Attempt for Saudi-Israel Deal

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      The president and his aides are pressing an aggressive diplomatic effort as Riyadh makes significant demands in exchange for normalization, including a nuclear deal and a robust U.S. security pact.Shortly after his plane took off earlier this month from Riyadh, where he had held a lengthy meeting with Saudi Arabia’s crown prince, Secretary of State Antony J. Blinken called a different Middle East leader, Prime Minister Benjamin Netanyahu of Israel.Over 40 minutes, Mr. Blinken gave the Israeli leader a briefing about the significant demands the young crown prince, Mohammed bin Salman, was making for his nation to normalize diplomatic relations with Israel. Mr. Netanyahu had an update on his own demands.The phone call — described by two American officials — was a turn in the Biden administration’s long-shot bid to broker a landmark diplomatic deal between Saudi Arabia and Israel, two historical adversaries who in recent years have been engaged in a discreet courtship in part over their shared distrust of archrival Iran.The White House, which for more than two years has largely been content to sit out the poker game of Middle East diplomacy, has decided to make a bet and push some of its chips in. The United States is now in the midst of complex negotiations among three leaders who have their own reasons for a deal but are making demands that might prove to be too costly. And they simply do not much like or trust each other.Several senior American officials said the chances of a deal could be less than 50 percent, and Mr. Blinken said he had “no illusions” the path to a deal would be quick. Still, a normalization of relations between Saudi Arabia and Israel would be one of the most dramatic events in a continued realignment of the Middle East, and could reap benefits for leaders of both countries, as well as President Biden, who faces re-election next year.It would also make explicit what has been true for a long time: that the government of one of the Arab world’s most influential countries has effectively made its support for a Palestinian independent state a lower priority.For Mr. Netanyahu, Saudi Arabia’s recognition of Israel would be a significant political victory for the embattled leader, whose hard-right coalition government faces fierce domestic opposition.For his part, Prince Mohammed is seeking a strengthened security relationship with the United States, access to more American weapons and U.S. consent for the kingdom to enrich uranium as part of a civilian nuclear program — something that Washington has long resisted.For Mr. Biden, drawing closer to Saudi Arabia carries political risks — he once pledged to make Saudi Arabia a “pariah” — but a diplomatic pact in the Middle East could be a boon ahead of the 2024 election. American officials also see strategic importance in bolstering ties with Saudi Arabia: as a way to keep Riyadh from gravitating further toward China, two nations that have engaged in an increasingly warm embrace.Working against the prospects of a deal is the fact that all sides would have to reverse course on at least one long-held position: for Israel, that the country would never allow nuclear enrichment in the Saudi kingdom; for Saudi Arabia, that peace with Israel can only come after an established state for the Palestinian people; for Mr. Biden, cementing a closer alliance with Saudi Arabia would force him to make a public case for why he changed his position on Prince Mohammed.Several American officials described the current push by the Biden administration, and the chances for success, on the condition of anonymity because of the sensitivity of the negotiations. They said they believe a confluence of factors have created a window of time — perhaps before next year when the American election cycle intensifies — to pull together a possible accord. One of the factors is that a Democratic president might have a better chance than a Republican president of selling the deal to party members and bringing some in the political opposition along.Quiet efforts to repair U.S.-Saudi relationsSecretary of State Antony J. Blinken meeting with Prince Mohammed in Jeddah, Saudi Arabia, this month. Mr. Blinken said he had “no illusions” the path to a deal would be quick.Pool photo by Amer HilabiIn recent weeks the Biden administration has accelerated the cadence of top officials traveling to Riyadh and Tel Aviv to meet with Prince Mohammed and Mr. Netanyahu. This week, just days after Mr. Blinken’s visit, Brett McGurk, the top White House official handling Middle East policy, led a delegation on an unpublicized trip to continue the negotiations, according to two American officials. Jake Sullivan, the national security adviser, traveled to Saudi Arabia in May.“Biden has decided to go for it, and everyone in the administration now understands that the president wants this,” said Martin Indyk, a former U.S. ambassador to Israel, who adds that a committed American president has long been essential for diplomatic breakthroughs between Israel and Arab nations. “When you’re talking about Middle East peace, it takes three to tango.”A new defense pact or nuclear deal with Saudi Arabia would face another hurdle: getting approval from a sharply divided Congress in which some prominent members of Mr. Biden’s party would likely vote against it. But odd political alliances have also formed, with one prominent Republican senator, Lindsey Graham of South Carolina, quietly assisting the White House’s negotiations.The Saudi embassy in Washington did not respond to a request for comment. A representative for the National Security Council said that the Biden administration’s Middle East policy “includes efforts to expand and strengthen the Abraham Accords,” as well as efforts to normalize relations between Israel and Saudi Arabia. Mr. Netanyahu has made no secret of his hope to seal a deal with the Saudis.The prospect of a formal rapprochement between Israel and Saudi Arabia has percolated for years, but both sides have seen too many obstacles to make the idea a reality. When President Trump in September 2020 presided over the signing of the Abraham Accords — diplomatic agreements between Israel and two Gulf Arab nations — the Saudis were not ready to join the pact.Though Mr. Biden took a frosty attitude toward Prince Mohammed, known as MBS, in part over the killing of the journalist and Washington Post contributor Jamal Khashoggi, he reluctantly visited the kingdom last July. Relations between the two countries hit a nadir in October, when the Saudis announced they were cutting oil production, a move that blindsided American officials.Saudi special forces performing during a military parade in Mecca last year. The Saudis are seeking fewer restrictions on U.S. arms sales to the kingdom.Amr Nabil/Associated PressThe two governments made quiet efforts to repair relations over the winter. Then in May, when Mr. Sullivan, the national security adviser, visited Riyadh, Prince Mohammed indicated a greater willingness to normalize relations with Israel. He agreed with Mr. Sullivan that this year might be the time to do it — but for the right price, said two people familiar with what transpired on the trip. This message, which Mr. Sullivan conveyed to Mr. Biden, seems to have swayed the president to make a push on a deal.This led to the visits to Riyadh this month of Mr. Blinken and Mr. McGurk.For Saudi Arabia, normalization with Israel is less about Israel and more about what it can get out of the United States, its historical security guarantor. Given how unpopular Israel remains among Saudi citizens, normalizing relations with the country would cost Prince Mohammed political capital with his own people, Saudi officials say. To justify that, they say, he would need to secure significant concessions from the United States, with an eye toward deterring Iran.But Prince Mohammed’s initial demands were steep: U.S. guarantees to defend Saudi Arabia from military attack, a Saudi-American partnership to enrich uranium for a civilian nuclear program and fewer restrictions on U.S. arms sales to the kingdom.Richard Goldberg, a White House official during the Trump administration and now a senior adviser at the Foundation for Defense of Democracies, which advocates for greater security for Israel, met with senior Saudi officials last month. In an interview, he said officials talk about uranium mining and enrichment for export revenue, but he believes that glosses over the real purpose: to have the means to build up a nuclear arsenal if Iran does the same.“The open question — the big question mark — is this: Is the uranium enrichment a red line, as MBS says, or is it an opening position?” said Mr. Goldberg, who is opposed to Iranian enrichment and has “strong discomfort” over the prospect of Saudi enrichment. “Whether it’s a bargaining position or truly a red line is not really known.”A big Israeli hurdle: Saudi nuclear enrichmentPrime Minister Benjamin Netanyahu of Israel could still face strong opposition from Israel’s national security establishment if he agrees to a Saudi enrichment program.Ronen Zvulun/ReutersMr. Netanyahu is in the most serious political crisis of his years as prime minister: he is on trial for corruption and the legal reform he tried to pass was met with mass protests in the country. If new elections were held tomorrow, polls suggest Mr. Netanyahu would lose.A landmark diplomatic arrangement could help reverse his political fortunes, some close to him believe. But consenting to a Saudi nuclear enrichment program would also be a reversal of longstanding policy in Israel, which worries that a Saudi nuclear program could lead to a nuclear arms race across the Middle East.Mr. Netanyahu could still face strong opposition from Israel’s national security establishment if he agrees to a Saudi enrichment program. A small group of Israeli aides has been entrusted to handle negotiations over a possible Saudi deal, including Ron Dermer, the minister of strategic affairs and a former ambassador to Washington, and Tzachi Hanegbi, the national security adviser. The group has visited Washington several times in recent months.With a hard-line government in Israel, there are no prospects for any deal that makes provisions for a Palestinian state. But for a rapprochement between Saudi Arabia and Israel to take place, the Saudis and the Biden administration have insisted that any deal includes some concrete gestures for the Palestinians, officials say.What those might be remains unclear.Muslim families at the Al Aqsa mosque in Jerusalem. The Saudis and the Biden administration have insisted that any deal includes some concrete gestures for the Palestinians.Afif Amireh for The New York Times“Bibi wants this so badly he can taste it,” said Mr. Indyk. But, he said, unless there were real accommodations made by Israel toward the Palestinians, the deal would be ephemeral and U.S. concessions to the Saudis would be wasted. “The Saudis are supposed to deliver the Muslim world, but if the U.S. lets MBS leave the Palestinians behind, the whole thing becomes unstable.”In public, Saudi officials have repeatedly said that they will not establish relations with Israel without a deal that includes the creation of a Palestinian state — a line they have maintained since the kingdom led the 2002 Arab peace initiative, which offered Israel diplomatic relations with Arab countries in exchange for the establishment of a Palestinian state. Prince Mohammed reiterated that message at an Arab League summit last month.“The Palestinian cause was, and still is, the pivotal issue for Arabs and Muslims,” Prince Mohammed said. “It comes at the top of the kingdom’s foreign policy priorities.”Among the largest barriers to Saudi Arabia expanding its ties with Israel is public opinion. Even as the Gulf’s authoritarian rulers and business elites lean toward deepening their relationships with Israel, most Gulf citizens are opposed to full normalization. In an April poll by the Washington Institute, 78 percent of Saudis said the Abraham Accords would have a negative impact on the region.A divided Congress on Saudi relationsSenator Robert Menendez, Democrat of New Jersey, left, has placed a hold on the sale of certain weapons to Saudi Arabia. Senator Lindsey Graham, Republican of South Carolina, right, has been more favorable to the Saudis.Tom Brenner for The New York TimesAny new defense pact or nuclear deal with the Saudis would require congressional approval, a tall order given the ambivalent or outright hostile attitude of some prominent Democratic lawmakers toward the kingdom.Along with Republican colleagues, lawmakers have denounced Prince Mohammed for the murder of Mr. Khashoggi — in which he has vehemently denied playing any role — and the mass killing of civilians in the war in Yemen. A top Democrat in the Senate, Robert Menendez of New Jersey, has placed a hold on the sale of certain weapons to Saudi Arabia.Lawmakers have also expressed their concerns over any move by Saudi Arabia to enrich uranium in its territory, citing proliferation concerns. For years, the State Department has been trying to negotiate what it calls a 123 agreement with the Saudis, which would lay out tough nonproliferation criteria to allow for American cooperation on civilian nuclear energy, though Saudi officials have balked at the restrictions in part because of Iran’s program. The United States has such an agreement with the United Arab Emirates, Saudi Arabia’s neighbor, that bans in-country uranium enrichment.But Democratic and Republican lawmakers are generally supportive of promoting normalization between Israel and Arab nations, and they know that such accords can be a political gain to win over pro-Israel voters during election seasons.Aides working for the two top senators on the Senate Foreign Relations Committee, Mr. Menendez and Jim Risch, Republican of Idaho, are drafting a bill that calls for the U.S. government to try to deepen the Abraham Accords and expand what they call “regional integration.”Among the Republicans, an unlikely figure has stepped forward offering to help: Mr. Graham. In an interview, he said he has been working with top Biden administration officials to help to broker Saudi-Israeli peace.“Ending the Arab-Israeli conflict would be a game changer for the world and further isolate Iran,” he said.Mr. Graham says he has spoken to Senator Mitch McConnell, the Kentucky Republican and minority leader, and other top G.OP. lawmakers, and said there would potentially be “a lot of support on the Republican side.” He met with Prince Mohammed in Riyadh earlier this year, and has frequent discussions with senior Israeli officials.Although he was one of the most strident critics of Prince Mohammed after Mr. Khashoggi’s killing and once called the crown prince “a wrecking ball to the region jeopardizing our national security interests on multiple fronts,” Mr. Graham has now changed his tune.While “the Khashoggi thing is no small matter,” he said he made a decision to re-engage with Saudi Arabia because it is in the interests of the United States — isolating Iran and possibly blunting China’s influence over Saudi Arabia.Mr. Graham also said it would also bring credit to former President Trump and Jared Kushner, the former president’s son-in-law, who brokered the diplomatic pacts between Israel and several Arab countries during the final months of his presidency.He also has parochial business interests: More arms deals with Saudi Arabia could bring economic benefits to his home state. In May, the senator praised Saudi Arabia’s decision to purchase more than $35 billion worth of Boeing Dreamliner jets, which are manufactured in South Carolina.During a celebratory event at Boeing’s South Carolina plant, he was ecstatic.“Let it be said that the journey to the future of the Middle East ran through Charleston, South Carolina!” he said.Eric Schmitt More

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      As Europe Piles Sanctions on Russia, Some Sacred Cows Are Spared

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      The European Union has been severing economic ties with Moscow to support Ukraine, but some countries have lobbied to protect key sectors.BRUSSELS — Eight months into the war in Ukraine, and eight rounds of frantic negotiations later, Europe’s sanctions against Russia run hundreds of pages long and have in many places cut to the bone.Since February, the European Union has named 1,236 people and 155 companies for sanctions, freezing their assets and blocking their access to the bloc. It has banned the trade of products in nearly 1,000 categories and hundreds of subcategories. It has put in place a near-total embargo on Russian oil. About one-third of the bloc’s exports to Russia by value and two-thirds of imports have been banned.But even now some goods and sectors remain conspicuously exempted. A look at just a few items reveals the intense back-room bargaining and arm-twisting by some nations and by private industry to protect sectors they deem too valuable to give up — as well as the compromises the European Union has made to maintain consensus.The Belgians have shielded trade in Russian diamonds. The Greeks ship Russian oil unimpeded. France and several other nations still import Russian uranium for nuclear power generation.The net impact of these exemptions on the effectiveness of Europe’s penalties against Russia is hard to assess, but politically, they have allowed the 27 members of the bloc to pull together an otherwise vast sanctions regime with exceptional speed and unanimity.“Ultimately, this is the price of unanimity to hold together this coalition, and in the grander scheme of things the sanctions are really working,” said Jacob Kirkegaard, a senior fellow in the Brussels office of the research group the German Marshall Fund, citing Russia’s diminished access to military technology as evidence.A Lukoil gas station in Priolo Gargallo, Italy, last month. The European Union has put in place a near-total embargo on Russian oil, but some sectors of trade remain conspicuously exempt from sanctions.Gianni Cipriano for The New York Times“We would love to have everything included, diamonds and every other special interest hit, but I am of the opinion that, if sparing them is what it takes to keep everyone together, so be it,” he added.The Ukrainian government has criticized some of the exemptions, with President Volodymyr Zelensky chiding European nations for continuing to permit business with Russia, saying they are skirting sacrifices.“There are people for whom the diamonds sold in Antwerp are more important than the battle we are waging. Peace is worth much more than diamonds,” Mr. Zelensky said to the Belgian Parliament during an address by video link in late March.Keeping Diamonds ComingThe continued success of Belgium and the broad diamond sector in keeping the Russian diamond trade flowing exemplifies the sacred cows some E.U. nations refuse to sacrifice, even as their peers accept pain to punish the Kremlin.Exports of rough diamonds are very lucrative for Russia, and they flow to the Belgian port of Antwerp, a historically important diamond hub.The trade, worth 1.8 billion euros a year — about $1.75 billion — has been shielded in consecutive rounds of the bloc’s sanctions, despite being raised as a possible target soon after the Russian invasion of Ukraine in late February.The Belgian government has said that it has never asked the European Commission, the E.U. executive body that drafts the measures, to remove diamonds from any sanctions list and that if diamonds were added, it would go along.Diamonds being sorted in Mirny, Russia, at a facility operated by Alrosa, the Russian state-owned diamond company. Russian diamonds have been shielded in consecutive rounds of European sanctions.Maxim Babenko for The New York TimesTechnically speaking, that may be true. But the latest round of penalties, adopted this month, exposed the intensive interventions when a coordination error occurred among the various services in the bloc that are involved in the technical preparation of sanctions.The incident, described to The New York Times by several diplomats involved as “farcical,” shows how the lobbying works. The diplomats spoke anonymously in order to describe freely what happened.The European Commission over the course of September prepared the latest round of sanctions and left diamonds off that list.But the European External Action Service — the E.U.’s equivalent of a foreign service or state department, which works with the commission to prepare sanctions — did not get the memo that diamonds should remain exempted and included in its own draft listings Alrosa, the Russian state-owned diamonds company.Once Alrosa had been put on the draft document, removing it became difficult. Spotting the error, Poland and other hard-line pro-Ukraine countries in the bloc dragged out the negotiations over the package as much as they could on the basis that Alrosa should indeed face sanctions.In the end, the need for unanimity and speed prevailed, and Alrosa continues to export to the European Union, at least until the next round of sanctions is negotiated. In proposals for a fresh, ninth round of sanctions, presented by Poland and its allies last week, diamonds were again included, but formal talks on the new set of penalties have not yet begun.A spokesman for the European External Action Service declined to comment, saying it does not comment on internal procedures involved in preparing sanctions.The Tricastin nuclear power plant in the Drôme region of southeastern France. France is one of several E.U. countries that depend on Russian uranium to operate civil nuclear power facilities. Andrea Mantovani for The New York TimesNuclear PowerMost exemptions have not been as clear-cut as diamonds because they have involved more complex industries or services, or affected more than one country.Uranium exported from Russia for use in civil nuclear power production falls under this category. Nuclear power plants in France, Hungary, Slovakia, Finland and other countries depend on Russian civilian uranium exports.The trade is worth 200 million euros, or about $194 million, according to Greenpeace, which has been lobbying for its ban. Germany and other E.U. countries have supported the calls to ban civilian nuclear imports from Russia, making this another issue likely to come up in the next round of sanctions talks.In August, Mr. Zelensky also highlighted the persistent protection of the Russian nuclear exports to Europe just as Ukraine’s Zaporizhzhia nuclear power plant came under fire.Some supporters of keeping Russian uranium running say that France and the other countries’ ability to generate electricity by operating their nuclear power plants during an acute energy crisis is more important than the political or financial gains that could come from a ban through E.U. sanctions, at least for now.Tankers in the NightOne of the most complex and important lobbying efforts to protect a European industry from sanctions is the one mounted by Greek diplomats to allow Greek-owned tankers to transport Russian oil to non-European destinations.This has facilitated one of the Kremlin’s biggest revenue streams. More than half of the vessels transporting Russia’s oil are Greek-owned, according to information aggregated from MarineTraffic, a shipping data platform.Supporters of the Greek shipping industry say that if it pulled out of that business, others would step in to deliver Russian oil to places like India and China. Experts say lining up enough tankers to make up for a total Greek pullout would not be simple, considering the sheer size of Greek-interest fleets and their dominance in this trade.According to European diplomats involved in the negotiations, their Greek counterparts were able to exempt Greek shipping companies from the oil embargo in a tough round of talks last May and June.Since then, the E.U. has come around to a United States-led idea to keep facilitating the transport of Russian oil, in order to avert a global oil-market meltdown, but to do so at a capped price to limit Russia’s revenues.The Greeks saw an opening: They would continue to transport Russian oil, but at the capped price. The bloc offered them additional concessions, and Greece agreed that the shipping of Russian oil would be banned if the price cap was not observed.The Greek-flagged oil tanker Minerva Virgo. Greek diplomats have lobbied for Greek-owned tankers to be allowed to transport Russian oil to non-European destinations. Bjoern Kils/ReutersEven if the economic benefits of such exemptions are hard to define, from a political perspective, the continued protection of some goods and industries is creating bad blood among E.U. members.Governments that have readily taken big hits through sanctions to support Ukraine, sacrificing revenues and jobs, are embittered that their partners in the bloc continue to doggedly protect their own interests.The divisions deepen a sense of disconnect between those more hawkish pro-Ukraine E.U. nations nearer Ukraine and those farther away, although geographical proximity is far from the only determinant of countries’ attitudes toward the war.And given that the bloc is a constant negotiating arena on many issues, some warn that what goes around eventually will come around.“This may be a raw calculation of national interests, but it’s going to linger,” Mr. Kirkegaard said. “Whoever doesn’t contribute now through sacrifice, next time there’s a budget or some other debate, it’s going to come back and haunt them.” More

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      Iran Atomic Agency Says It Thwarted Attack on a Facility

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      The attack was said to have been carried out by a small drone against a manufacturing center used in the production of centrifuges.Iran’s Atomic Energy Agency said on Wednesday that an attack on one of its facilities early in the morning had been foiled, with no casualties or structural damage to the site.The agency’s statement did not reveal the name of the site, but the targeted building was one of Iran’s main manufacturing centers for the production of the centrifuges used at the country’s two nuclear facilities, Fordow and Natanz, according to an Iranian familiar with the attack and to a senior intelligence official.The attack on the facility near the city of Karaj, on the outskirts of Tehran, was carried out by a small quadcopter drone, according to Iranian media and the Iranian familiar with the attack. While no one claimed responsibility for the attack, the centrifuge factory, known as the Iran Centrifuge Technology Company, or TESA, was on a list of targets that Israel presented to the Trump administration early last year. The Israeli government did not comment on the attack on Wednesday.The drone appeared to have taken off from inside Iran, from a location not far from the site, and hit the structure, the person familiar with the attack said. The person did not know what, if any, damage had resulted.If the attack was thwarted, it would be a welcome victory for Iran’s embattled intelligence and security agencies, which have been blamed for failing to stop a series of attacks over the past year, including two acts of sabotage on the Natanz nuclear facility and the assassination of the top nuclear scientist Mohsen Fakhrizadeh.The centrifuge production facility was on a list that Israel presented in early 2020 to President Donald J. Trump and senior administration officials, including Secretary of State Mike Pompeo and Gina Haspel, director of the C.I.A., as possible targets for attack, part of Israel’s wide-ranging campaign against Iran’s nuclear program, according to the senior intelligence official.Among the targets presented at the time, according to the senior intelligence official, were attacks on the uranium enrichment site at Natanz and the assassination of Mr. Fakhrizadeh. Israel assassinated Mr. Fakhrizadeh that November, and struck the Natanz plant the following April, damaging a large number of centrifuges.According to the intelligence official, the campaign against Iran’s nuclear program was carried out with the knowledge and blessing of the Trump administration. While it is still too early to determine if any damage was inflicted on the centrifuge manufacturing plant on Wednesday, it is easy to assess why it would be a top target for anyone seeking to harm the Iranian nuclear program.Hundreds and possibly even more centrifuges were taken out of action in the April attack on Natanz, and the factory targeted on Wednesday had been tasked with replacing those that were destroyed.In addition, the factory also produces Iran’s more advanced and modern centrifuges, which can enrich more uranium in a shorter time. And Iran’s ability to develop, manufacture, assemble and operate such centrifuges, which significantly shorten the time needed to enrich a sufficient quantity for a bomb, is one of the central negotiating points in talks in Vienna about the future of the 2015 nuclear deal.Iran’s Atomic Energy Agency said the details of Wednesday’s attack were under investigation.“Given the precautions taken to protect sites belonging to the atomic nuclear agency, this morning’s attack was foiled before it could damage the building,” the statement said. The agency praised security and intelligence forces for their prevention of threats “aimed at attacking Iran’s peaceful nuclear activities.”Iran’s aviation agency announced a new law on Wednesday requiring all civilian drones, regardless of size and purpose, to be registered on a government website within six months. The registered drones would be issued licenses.The drone attack on Wednesday has similarities to one carried out against a Hezbollah facility in Beirut in August 2019, which destroyed what Israeli officials described as machinery vital to Hezbollah’s precision-missile production efforts.In that attack, tiny armed drones took off from the coastal area of Beirut, and crashed into the facility. The operatives behind the attack, who Hezbollah officials identified as Israelis, withdrew to a submarine that came to pick them up.Israel and Iran have been fighting a shadow war, with clandestine attacks across the region occurring on land, in the air and at sea. More