The method is buried about 60% through the article, but it's interesting. It seems incredibly risky for the cloud companies to do this. Was it agreed by some salespeople without the knowledge of legal / management?
Leaked documents from Israel’s finance ministry, which include a finalised version of the Nimbus agreement, suggest the secret code would take the form of payments – referred to as “special compensation” – made by the companies to the Israeli government.
According to the documents, the payments must be made “within 24 hours of the information being transferred” and correspond to the telephone dialing code of the foreign country, amounting to sums between 1,000 and 9,999 shekels.
If either Google or Amazon provides information to authorities in the US, where the dialing code is +1, and they are prevented from disclosing their cooperation, they must send the Israeli government 1,000 shekels.
If, for example, the companies receive a request for Israeli data from authorities in Italy, where the dialing code is +39, they must send 3,900 shekels.
If the companies conclude the terms of a gag order prevent them from even signaling which country has received the data, there is a backstop: the companies must pay 100,000 shekels ($30,000) to the Israeli government.