Tallinn- Herman Simm, a former senior Estonian intelligence official was found guilty of treason charges on Wednesday and sentenced to 12 and a half years in prison.

Simm was also ordered to pay a fine of more than 2 million dollars for selling state secrets to Russia over more than a decade.

Harju County Court in the Estonian capital, Tallinn, released its verdict after a trial held in strict secrecy.

Simm, who began his career at the Estonian Defence Ministry in 1995, was arrested in September 2008 on treason charges.

He served until 2006 as head of the security department at the Defence Ministry and had high-level access to secret information.

The Simm case has caused a sensation in Estonia, reinforcing fears that a "new Cold War" is beginning between Russia and the West.

The case is doubly significant as Simm is an ethnic Estonian.

One quarter of Estonia's population is ethnically Russian, and riots in the capital Tallinn in April 2007 following the relocation of a Soviet-era war memorial caused many Estonians to question the loyalty of Russian residents.

When it emerged that an ethnic Estonian could have been selling information to Russia, many Estonians could hardly believe their ears.

German publication Der Spiegel has claimed Simm also operated as a double agent for the German intelligence service, the BND, and may have revealed the secrets of a vital NATO encryption system to Russia. (dpa)