Key Points:
- Russia held a 99‑year lease from 2008 for land about 300 metres from Parliament House in Canberra for a new embassy
- The government stated that the site posed a “very clear security risk” due to its proximity to Parliament
- Australia must pay Russia compensation and cover approximately half of Russia’s legal
- Russia continues to operate its existing embassy in Griffith, Canberra
ISLAMABAD: Australia’s highest court has rejected Russia’s legal challenge to prevent the termination of its lease on a prominent site in the capital, concluding that the government’s law cancelling the lease is constitutionally valid, while also ruling that compensation must be paid.
In a unanimous decision, the High Court found that the Home Affairs Act 2023 validly exercised Parliament’s power by cancelling Russia’s 2008 99‑year lease on a high-security site about 300 metres from Parliament House.
While acknowledging the government’s right to cancel the lease on security grounds, the court held that the action amounted to an “acquisition of property” under the constitution and ordered that Russia be compensated and have roughly half its legal costs covered.
The Australian government stated that it decided after receiving “very clear security advice … about the nature of the construction … and the capability that that would present in terms of potential interference with activity that occurs in this Parliament House.” Prime Minister Anthony Albanese cited these assessments when the lease was terminated in 2023.
Russia had intended to build a new embassy facility on the site to replace its older compound in Griffith, but construction remained incomplete after years of delay. Australia argued that the unused site, combined with its location, posed a strategic risk.
The ruling underscores Australia’s willingness to prioritise national security over diplomatic land allocations. However, the requirement for compensation illustrates the legal limits of the government’s power to extinguish a foreign state’s property rights. Attorney‑General Michelle Rowland welcomed the decision, stating, “Australia will always stand up for our values and we will stand up for our national security.”
