A former Ukrainian prime minister has been convicted for abusing her authority in office over a 2009 gas deal with Russia and sentenced to seven years in prison.
Amid emotional scenes in the packed court, Yulia Tymoshenko was convicted of exceeding her powers by ordering state energy firm Naftogaz to sign a gas deal with Russia in 2009.
The verdict is set to further strain ties between Ukraine and the West.
"The court rules that Y V Tymoshenko intentionally used her powers to criminal ends and, acting deliberately, carried out actions ... which led to heavy consequences," Ukrainian judge Rodion Kireyev said in his judgement.
"The court finds her guilty and sentences her to seven years in prison."
The sentence came in a lengthy judgment at the end of a three-month trial which has polarised society in the ex-Soviet republic.
EU officials have warned that a conviction would severely jeopardise Ukraine's hopes of signing an association agreement with the European Union this year which would be a first step towards its goal of joining the bloc.
The former Orange Revolution leader, flanked by her husband Olexander and daughter Yevgenia, immediately denounced what she said was a verdict ordered by her political rival, president Viktor Yanukovych.
After the judge announced his decision, Mr Yanukovych told journalists that the verdict was not final and he understood the European Union's anxiety over the case.
"It has made the European Union anxious and we understand why this is so," he said.
"Today the court took its decision in the framework of the current criminal code. This is not the final decision," he said, alluding to the court of appeal and possible law changes.
The verdict was in line with the demand of prosecutors, who wanted a sentence of seven years.
"We will fight and defend my good name in the European court," Tymoshenko said.
"We have to be strong and defend Ukraine from this authoritarianism."
Judge Rodion Kireyev said Tymoshenko sustained a loss to state gas firm Naftogaz of 1.5 billion hryvnia ($189 million) by agreeing the 10-year contract.
The judge ordered Tymoshenko to pay back the loss in full as compensation.
Despite being in custody since August, Tymoshenko, as ever, showed up in court with her hair plaited intricately around her head and wearing an immaculate beige dress.
She shouted "Glory to Ukraine!" after being led in.
EU ties at risk
Her supporters have portrayed the trial as a struggle for the future of Ukraine and a historic fight to ensure it has a future at the heart of Europe.
The Yanukovich leadership says the 10-year contract with Russia has saddled the country with an exorbitant price for vital supplies of Russian gas.
But Tymoshenko insists that the case is a vendetta pursued by Mr Yanukovych to eliminate her from politics after their tight tussle in 2010 presidential elections.
EU foreign policy chief Catherine Ashton warned earlier this week that the process could affect the integration of Ukraine, saying that "we're not optimistic about this trial".
Swedish foreign minister Carl Bildt was blunter.
"Political show-trials have no place in our Europe," he said.
After the verdict, the EU said it was "deeply disappointed" and that the trial "did not respect international standards".
Though Russia has rejected charges by the Yanukovich leadership that the deal was dishonestly negotiated, it is in talks with Ukraine on its terms.
The Ukrainian government says it hopes a new contract will be tied up by the end of the year.
Hundreds of Tymoshenko supporters gathered outside the court in central Kiev in a tense standoff with security forces as the verdict was read out.
Similar numbers of elite Berkut anti-riot police kept watch over the protestors and there were minor scuffles although no major clashes.
"Freedom for Yulia!" and "Down with the bandits!" were among the slogans shouted by the demonstrators who also put up tents outside the court in a sign they had no intention of moving away in a hurry.
Tymoshenko was first detained in August for contempt of court after she incessantly mocked the boyish judge Kireyev on Twitter messages sent from her iPad in the courthouse.
She has been in custody ever since.
Reuters/AFP
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