Sanader becomes the first premier from the former Yugoslav region to be tried and found guilty of profiting from the war, B92 reported Wednesday.
Prosecutors had sought the maximum penalty of 15 years in prison for Sanader.
In addition to jail time, Sanader has been ordered to reimburse the state $4.6 million for money he gained unlawfully.
He is currently undergoing another corruption trial on charges of transferring money from state institutions to an HDZ party slush fund.
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