The High Court has dismissed Russia's challenge to a 2023 Australian law that revoked a 99-year lease for land near Parliament and blocked plans for a new Russian embassy. The court ruled the law valid but ordered Australia to pay compensation to Russia. The dispute followed security advice cited by Prime Minister Anthony Albanese and included a brief episode in which a Russian diplomat squatted in a small shed on the site before being evicted.
High Court Rejects Russia's Bid to Build Embassy Near Australia's Parliament — Canberra Ordered to Pay Compensation
The High Court has dismissed Russia's challenge to a 2023 Australian law that revoked a 99-year lease for land near Parliament and blocked plans for a new Russian embassy. The court ruled the law valid but ordered Australia to pay compensation to Russia. The dispute followed security advice cited by Prime Minister Anthony Albanese and included a brief episode in which a Russian diplomat squatted in a small shed on the site before being evicted.
02:37 PM, 11/12/2025Politics
High Court upholds law blocking Russian embassy near Parliament
The High Court of Australia on Wednesday dismissed Russia's legal challenge to a 2023 law that blocked plans for a new Russian embassy less than a kilometre from the parliamentary precinct.
Russia had secured a 99-year lease for the site in 2008 after paying nearly Aus$3 million (about US$2 million). The plot is located roughly 400 metres from Parliament House. In 2023, the Australian Parliament passed legislation revoking the lease and prohibiting the development, citing national security concerns.
Security reasoning and legal dispute
Prime Minister Anthony Albanese said the government acted on "very clear security advice" from Australia's intelligence agencies about the risks of a Russian diplomatic presence so close to Parliament. Moscow argued the 2023 law was unconstitutional and took the matter to the High Court.
On Wednesday the High Court found the law valid but also ruled that the Australian government must pay compensation to Russia for terminating the lease.
Squatter episode and eviction
Following the legislative change, attempts by Australian officials to take immediate control of the site were delayed when a middle-aged Russian diplomat briefly occupied a small on-site security shed. Reports said he endured cold conditions, watched television, snacked on vegetable chips and stepped outside occasionally to smoke. He was removed a few days later after a preliminary High Court ruling supported the government's eviction efforts.
Implications
The decision resolves a years-long legal standoff between Canberra and Moscow. While the court upheld Australia’s ability to restrict construction on security grounds, it also reinforced the requirement to provide compensation when terminating long-term leases — a point likely to shape future diplomatic property disputes.