Australia’s High Court upholds cancellation of Russian embassy site near Parliament, orders compensation to Moscow

Russia’s government lost its legal challenge in Australia’s High Court on Wednesday over plans to construct a new embassy less than a kilometre from the national parliament. The court’s decision brings an end to a prolonged diplomatic and legal dispute between the two countries.

Russia had been granted a 99-year lease in 2008 after paying nearly Aus$3 million ($2 million) for the site, located about 400 metres from the parliamentary precinct in Canberra. However, in 2023, the Australian parliament passed a law revoking the lease and blocking the project from proceeding.

Prime Minister Anthony Albanese at the time said the move followed “very clear security advice” from Australia’s intelligence agency regarding “the risk presented by a new Russian presence so close to Parliament House”. Lawyers representing Moscow later argued that the legislation was unconstitutional, sparking a lengthy legal battle.

Court upholds law but orders compensation to Moscow

The High Court, on Wednesday, ruled that the 2023 law was valid but determined that the Australian government must pay compensation to Russia for the revoked lease.

Following the legislative change last year, Australia’s attempt to seize control of the land faced an unusual setback when a Russian diplomat began squatting inside a small security shed on the site. The man reportedly endured freezing temperatures, spending his days watching television, eating vegetable chips, and occasionally stepping outside to smoke.

His brief occupation ended after a preliminary High Court ruling sided with the government, allowing authorities to evict him and regain control of the land.