Authorities in the town of Chekhov outside Moscow ruled that Pyotr Boronkevich's brand of Christianity, notable for its expressive style of worship and emphasis on preaching and personal conversion, contradicted the religious beliefs of most of the town residents and threatened to cause mass unrest.
The dominant religion in Russia is Orthodox Christianity.
Boronkevich filed an appeal with a local court in 2002, saying his constitutional rights and freedoms had been violated, but the court refused to consider the plea. The cleric then appealed to the Strasbourg court, citing several articles applying to his case in the European Convention on Human Rights.
The Strasbourg court's ruling said the bans on religious gatherings had no place in a democratic society.
A rights official said Friday Russians will keep turning to the European court until the country's judicial system is reformed.
Vladimir Tambovtsev, the head of the government's human rights department, said: "Our citizens are forced to turn to the European court, as our justice system does not ensure consideration of issues relating to infringements of human rights, but is focused on criminal investigation."
He said about 20,000 suits filed by Russian nationals against the government are due for consideration the Strasbourg court.
Tambovtsev proposed setting up a court panel on human rights under the country's Supreme Court, which could receive all appeals relating to violations of human rights and freedoms.
"Only in cases when the panel fails to restore violated rights will it be possible to turn to the European court. But unfortunately, no one is prepared to consider this idea yet," he said.
On Thursday, the European Court of Human Rights ordered Russia to pay 143,000 euros ($196,000) to the families of 11 Chechen residents allegedly killed by Russian servicemen near the capital Grozny in 2000.
The court recently ruled that Russia must pay 8,000 euros in compensation to a former Russian prosecutor general who was excluded from a candidate list in 2003 parliamentary elections, and partially upheld an appeal by a retired Russian security officer held in a Urals prison on treason charges, ordering the government to pay 3,000 euros ($4,100) in compensation.