GENEVA, July 15 (Reuters) - Medecins Sans Frontieres (MSF) expressed shock on Tuesday at a Swiss court order to repay the Netherlands a quarter of the one million euro ($1.60 million) ransom paid for a Dutch aid worker released in Russia in 2004.

"This decision sets a grave precedent for independent humanitarian action in zones of conflict," MSF Switzerland (Doctors Without Borders) said in a statement.

The medical charity reasserted its long-standing charge that the Dutch government had "negotiated and paid a ransom and then passed on the bill to MSF."

The civil case pitting MSF Switzerland against the Dutch government has wound its way through Swiss courts since Arjan Erkel was released in Russia in April 2004 after being held for 20 months as a hostage in the Caucasus region of Dagestan.

The dispute turned on whether the Dutch government had the right to reclaim ransom money it had made available to MSF.

MSF won two earlier rulings by lower courts in Geneva, but the Federal Tribunal, the top court based in Lausanne, ruled on Monday that MSF should pay 270,000 euros to the Netherlands.

The court was to release its reasoning at a later date.

"This judgment of Solomon is appalling," MSF said.

Isabelle Segui-Bitz, President of MSF Switzerland, said: "This ruling, given in the very country where the Geneva Conventions were signed, is worrying for the teams working in zones of conflict, such as Somalia, or Darfur." (Reporting by Stephanie Nebehay; Editing by Jonathan Lynn and Jon Boyle)

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