Mr Navalny has always denied the charge, believing he was brought to trial because of his opposition to President Vladimir Putin.
The verdict may preclude him from running for Moscow mayor in September.
Mr Navalny was found guilty of heading a group that embezzled 16m rubles (£300,000) worth of timber from the Kirovles state timber company while working as an adviser to Kirov’s governor. The proscecution have asked for the maximum six-year prison sentence to be imposed.
Mr Navalny came to prominence in December 2011 when he inspired mass protests against the Kremlin and President Putin.
