Russia has lost its battle with the federal government over a site for a new embassy in Canberra but the Commonwealth will have to compensate the federation for revoking the lease on the site.

The lease was granted to Russia in 2008, but was withdrawn when parliament passed a new law in 2023, citing advice from ASIO that the planned embassy could pose a threat to national security.

Lawyers for Russia argued the law was invalid because it was not supported by the constitution, and the act did not state the reason for the termination.

Today, the High Court found the new law was valid, but Russia was entitled to compensation.

National security threat

In 2008, Russia was granted a lease on the land.

Russia wanted a new embassy to replace the crumbling buildings it had occupied for decade

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