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The United States has slammed Russia over conviction of jailed tycoon Mikhail Khodorkovsky and his associate, saying "selective application" of the law to them will have a "negative impact" on Moscow's reputation.
"This and similar cases have a negative impact on Russia's reputation for fulfilling its international human rights obligations and improving its investment climate," the Secretary of State Hillary Clinton said on Monday.
Clinton said the verdict "raises serious questions about selective prosecution -- and about the rule of law being overshadowed by political considerations."
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Khodorkovsky and co-accused Platon Lebedev, already in prison on previous fraud charges, were convicted on embezzlement and money laundering charges that the head of the now-defunct Yukos oil giant insists were politically motivated by his support for Russia's opposition.
On Monday, a Russian court found jailed tycoon Mikhail Khodorkovsky and his associate guilty of embezzling and laundering a whopping $23.5 billion, a sentencing that has upset Western rights campaigners.
Khodorkovsky and Platon Lebedev, a co-accused, were convicted of embezzlement and money laundering, said judge Viktor Danilkin.
Police officers detain a protester during a rally to support jailed Russian former oil tycoon Mikhail Khodorkovsky in front of the court building in Moscow.
The verdict came less than two weeks after Prime Minister Vladimir Putin said Khodorkovsky was a proven criminal who should sit in prison.
The blunt statement reflected his stance against the man who challenged his power. His remarks were denounced by critics as interference in the trial.
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The sentencing dashed the hopes of Russian liberals that the trial would show a new approach from Russian courts.
The duo was charged with embezzling 218 million tonnes of oil from Khodorkovsky's Yukos oil giant between 1998 and 2003 and laundering $16 billion. They received $7.5 billion from the oil.
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"This is an unjust verdict by a court that is not free," Khodorkovsky's lead lawyer Vadim Klyuvgant told reporters.
"It is shameful for the country. We will appeal the verdict."
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Only a handful of journalists were allowed into the courtroom for the verdict. The judge then asked even those journalists to leave as the rest of the verdict was read out.
The court has established that M Khodorkovsky and P Lebedev committed embezzlement acting in collusion with a group of people and using their professional positions, said the judge.
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Both reacted impassively to the judgement in the glass-fronted defendants' cage in the packed courtroom.
Hundreds of supporters gathered outside the court shouted "Russia without Putin" and "down with the police state."
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Klyuvgant said it was not clear when the final sentence would be delivered but said it was unlikely to be pronounced on Monday.
Khodorkovsky, 47, was once the country's richest man, now its most prominent prisoner, is already serving an eight-year sentence for fraud on charges his supporters insist were trumped up by the authorities.
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But with his release scheduled for 2011, Khodorkovsky was put on trial last year on charges of money laundering and embezzlement that could see the head of the now-defunct Yukos oil giant stay in jail until 2017.
"We are troubled by the allegations of serious due process violations, and what appears to be an abusive use of the legal system for improper ends," the White House Press Secretary Robert Gibbs said in a statement.
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"The apparent selective application of the law to these individuals undermines Russia's reputation as a country committed to deepening the rule of law," he said.
Gibbs said the Obama administration stands in solidarity with the many people in the Russian government, in the legal system, and in civil society who are committed to strengthening the rule of law and deepening the commitment to universal values enshrined in the Russian constitution.
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"Russia's failure to keep this commitment to universal values, including the rule of law, impedes its own modernisation and ability to deepen its ties with the United States," he said.
"President Obama has spoken frequently with President Medvedev about this case and others as part of their ongoing conversation about President Medvedev's important campaign to strengthen the rule of law and modernize Russia's political and economic system," he said.
"We will continue to monitor closely the next stages in this case, including the fairness of the sentences and the review by higher courts during the appeals process," Gibbs said.
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Image: Marina (2nd L) and Boris Khodorkovsky (C), parents of jailed Russian former oil tycoon Mikhail Khodorkovsky, and Mariya Lebedev (L), wife of Khodorkovsky's business partner Platon Lebedev and his son Mikhail Lebedev listen to the verdict in Moscow.
Photograph: Denis Sinyakov/Reuters