The long-running conflict over the Russian Federation’s disputed embassy property in Canberra has recently undergone a significant development. In a landmark ruling, Australia’s Supreme Court has given the Australian government the right to reclaim the area in the heart of the capital on national security grounds. Despite this legal victory, Australia must pay the Russian Federation compensation for the property.
The dispute originated in 2023, when Prime Minister Anthony Albanese made an unusual decision to prevent the establishment of a new Russian embassy close to the Australian Parliament. Citing serious security concerns that would arise from the proximity of a Russian diplomatic facility to the country’s political center, a law was quickly passed that prohibited Russia from continuing to use the property. This legislative intervention attracted international attention and created significant tensions between the two countries.
The Kremlin responded to these measures with sharp criticism, calling the Australian government’s actions an expression of ‘Russophobic hysteria’. The case was subsequently taken to court, where the decision was in favor of Australia. The court order required the Australian government to pay “appropriate compensation” to Russia and cover half of the legal costs, Australian press agency AAP reported.
The property had already been leased to the Russian Federation in 2008. In an unusual and symbolic act, a Russian official temporarily tried to prevent the loss of the area by camping on the property. However, this curious protest failed to influence the Court’s verdict. The case highlights the complex diplomatic challenges facing Australia and Russia and is expected to have far-reaching implications for the two nations’ bilateral relations.