Former PM jailed for 7 years over energy deal with Putin

The court also ordered Tymoshenko to pay £120 million to cover apparent losses caused by the deal negotiated with Russian prime minister Vladimir Putin in 2009 after a dispute between the two had cut supplies to western Europe.

In a rapid response Mr Putin said “he could not understand why they had handed her seven years” in prison. “It is dangerous and counterproductive to cast the entire package of agreements into doubt,” he added.

Criticism from Moscow will worry Ukraine. It depends heavily on Russian energy supplies so any dispute with its giant neighbour could cause future disruption to energy imports.

Catherine Ashton, the European Union’s foreign policy chief, said the decision to jail Tymoshenko “risks having profound implications for EU-Ukraine bilateral relations”.

Brussels had already voiced deep concerns over the trial saying it called into question Ukraine’s democratic values owing to fears that the proceedings were orchestrated politically by the politician’s foes, in particular president Viktor Yanukovich.

Tymoshenko’s supporters say the trial outcome reflects Mr Yanukovich’s plans to eliminate her as his only real opposition. If she ends up serving a long prison term, she will be unable to contest elections next year or run again for president in 2015.

The verdict also comes as an association agreement between Ukraine and the EU was under negotiation, but with Tymoshenko now facing jail that deal is now under threat.

“The EU will reflect on its policies towards Ukraine,” said Lady Ashton “The way the Ukrainian authorities will generally respect universal values and the rule of law, and specifically how they will handle these cases, risks having profound implications for the EU-Ukraine bilateral relationship, including the conclusion of the Association Agreement, our political dialogue and our co-operation more broadly.”

In Kiev the sentence was greeted with uproar by Tymoshenko supporters outside the court. The golden-haired politician shot to fame as one of the leaders of the 2004 Orange Revolution against Mr Yanukovich, and although many of the dreams of the revolution have soured she still commands the respect of many Ukrainians.

Riot police struggled to contain the crowd while in the court cries of “shame” reverberated around the room after Judge Rodion Kireyev sent her down.

On hearing the verdict Tymoshenko, flanked by her husband and daughter, remained calm but said Mr Yanukovich had returned Ukraine to the era of Stalinist purges.

“The year 1937 has returned to Ukraine with this verdict and all the repression of citizens,” she said, adding she would appeal. “As for me, be sure that I will not stop my fight even for a minute.”

Earlier, she claimed the sentence “is not being pronounced by Judge Kireyev but president Viktor Yanukovich.”

The rapid international condemnation appeared to rattle Mr Yanukovich. He told reporters later: “It [the verdict] has made the European Union anxious and we understand why this is so.

“Today the court took its decision in the framework of the current criminal code. This is not the final decision.”