Tymoshenko's trial has seen criticism from both the European Union and the United States [GALLO/GETTY] |
Tuesday's verdict could further strain ties between Ukraine and the West.
State prosecutors asked the court to sentence Tymoshenko, 50, the main political opponent of President Viktor Yanukovich, to seven years in jail for illegally forcing through the gas deal.
The European Union, one of Ukraine's main trading partners along with Russia, has told Yanukovich, who narrowly beat Tymoshenko for the presidency in February 2010, that landmark economic agreements will be in jeopardy if she is jailed.
Judge Rodion Kireyev, who was expected to deliver a sentence on Tymoshenko later, said her actions had led to a loss for Naftogaz of $188m.
"In January 2009, Tymoshenko, exercising the duties of prime minister ... used her powers for criminal ends and, acting delibertately, carried out actions ... which led to heavy consequences," he said on Tuesday.
Even before the judge began reading his verdict, Tymoshenko, who was flanked by her daughter and husband in court, exuded defiance.
"You know very well that the sentence is not being pronounced by Judge Kireyev but by President Yanukovich," she said.
"Whatever the sentence pronounced, my struggle will continue. This sentence, written by Yanukovich, will not change anything in my life or in my struggle."
About 2,000 Tymoshenko supporters, scores of police and crowds of anti-Tymoshenko demonstrators who turned out at the behest of the ruling Regions Party had gathered outside the central Kiev court before the verdict was delivered.
EU warning
Speaking on Monday, the EU's foreign policy chief Catherine Ashton had said "we are not optimistic" about Tymoshenko's trial.
"Our impression remains [that it amounts to] selective application of justice," she said.
EU foreign ministers had expressed great concern about the upcoming verdict, she said after an EU meeting in Luxembourg.
The bloc warned Yanukovich, Tymoshenko's arch-rival, that bilateral agreements on association and a free trade zone would not be approved by EU members if she is jailed.
"Whatever the sentence pronounced, my struggle will continue. This sentence, written by [Ukraine's President] Yanukovich, will not change anything in my life or in my struggle" - Yulia Tymoshenko, former PM |
She has been held in police detention for contempt of court since August.
When the judge late last month called an adjournment until Tuesday it was widely seen as a strategic pause to give Yanukovich and his advisers time to consider their options in the face of the Western criticism.
He maintained her prosecution was a matter for the courts.
Her supporters say that Yanukovich wants to neutralise her as a political force before next year's parliamentary election.
A powerful orator, Tymoshenko was a leader of the 2004 Orange Revolution that doomed Yanukovich's first bid for presidency.
She went on to hold the post of prime minister twice, but stepped down after losing to Yanukovich in the 2010 presidential election.