Australia’s High Court has said the government acted within its rights when it passed legislation canceling the 99-year lease on the site of the proposed Russian embassy.
Published November 12, 2025
Russia has lost a legal battle to build a new embassy near Australia’s parliament, with the country’s highest court ruling that Canberra acted within Russia’s rights when it terminated its lease on the site.
Australia passed legislation in 2023 that would put a moratorium on planned embassy buildings because authorities deemed them to pose a security threat.
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Australian Prime Minister Anthony Albanese said at the time that the government had decided to cancel the lease because of the “particular risks” posed by the site, which is about 300 meters (328 yards) from Parliament House.
Russia denounced the move as “Russophobic hysteria” and challenged the bill in court, arguing it was invalid under Australia’s constitution.
In a unanimous judgment on Wednesday, the high court found that the termination of the lease was a “valid exercise of legislative power” to enact laws relating to the acquisition of real estate.
But the court ruled that Russia was entitled to compensation after paying about $2 million in 99-year lease payments in 2008.
A court previously rejected Moscow’s bid to prevent officials from leaving the premises.
On June 15, the government introduced new legislation to end Russia’s lease on the land after intelligence agencies warned that the site posed a risk to national security.
“Australia will always uphold our values and we will uphold our national security,” Attorney General Michelle Rowland said in a statement after the verdict.
“The government welcomes the High Court’s decision finding that the government acted lawfully in terminating the Russian embassy’s lease,” Rowland said in a statement.
“The government will carefully consider its next steps in light of the court’s decision,” Rowland added.
According to Australian broadcaster ABC News, the Russian embassy said it was reviewing the ruling.
“The Russian side will carefully consider the precedent-setting court ruling,” an embassy official said in a statement.
Relations between Australia and Russia have been strained for years.
Relations deteriorated sharply after the downing of Malaysian Airlines Flight MH17, with multiple investigations pointing to pro-Russian separatists as the perpetrators, but relations worsened further when the Russian government launched a full-scale invasion of Ukraine in 2022.
#BREAKING: The lease was granted to Russia in 2008 but was rescinded when parliament passed a new law citing ASIO recommendations that the planned embassy could pose a threat to national security. https://t.co/6S6bf37h7m
— ABC News (@abcnews) November 11, 2025
