Russian Federation launches High Court action against decision to block new embassy in Canberra

The Russian Federation has officially launched legal action in the highest court in Australia as it challenges the PM’s decision to block its plans for a new Canberra embassy.

The Russian Federation has officially launched legal action in the highest court in Australia as it challenges the government’s decision to block its plans for a new embassy in Canberra.

Lawyers acting on behalf of Russian Ambassador Alexey Pavlovsky filed an injunction in the High Court on Friday afternoon against new laws that tore up the Kremlin’s lease for the proposed embassy site in Yarralumla.

The Albanese government had been preparing for a potential High Court challenge after crushing Russia’s embassy plans over concerns the site’s proximity to Parliament House posed a spying risk.

The Kremlin is challenging the new laws on constitutional grounds, arguing the commonwealth didn’t have just terms for terminating its lease, according to court documents filed on Friday.

Russia will fight in the High Court to prevent the commonwealth from entering the site in question or making any moves to re-lease the parcel of land until the legal dispute is resolved.

A Russian diplomat was found squatting on the disputed site. Picture: David Beach

He was still there on Friday night. Picture: NCA NewsWire / Martin Ollman

Prime Minister Anthony Albanese isn’t concerned about the squatter. Picture: NCA NewsWire / Martin Ollman

The court documents reveal Russia paid more than $2.75m in 2008 to be allowed to sign a 99-year lease for the parcel of land, with ongoing annual rental payments of just five cents.

Under the terms of the lease, Russia was to be granted “quiet enjoyment of the land without interruption by the commonwealth” as long as it paid the rent and met its other obligations.

But the embassy plans were dogged by issues from the start, with court documents showing Russia has spent more than $US5.5m on developing the land with little success.

Russia agreed to start building its new diplomatic complex on the site within 18 months of signing the lease but failed to do so.

The commonwealth didn’t terminate Russia’s lease at the time, even though it would have been allowed to because the embassy hadn’t been built within the agreed time frame.

From 2010 to 2020, the commonwealth and the National Capital Authority continued to assist Russia to construct the embassy, court documents show.

Prime Minister Anthony Albanese says the government is confident. Picture: NCA NewsWire / Martin Ollman

Russia started construction on the site in 2016 but had to down tools the following year after it fell into dispute with its building contractor.

After finding a new contractor, Russia restarted construction in 2020 but the process was slowed by Covid-19 shutdowns.

By June last year, a consular building had been erected on the site but the remainder of the planned diplomatic complex was yet to be built.

In August last year, Canberra’s National Capital Authority issued an eviction order to the Russian embassy to leave the site.

The planning authority said Russia hadn’t met the conditions of its lease because it hadn’t finished construction in the agreed upon time frame or been granted an extension by the commonwealth.

Russia then successfully challenged this decision in the Federal Court, prompting the federal government to enact new laws to permanently prevent the new embassy from being built.

Those laws were rushed through parliament last week and Russia now intends to challenge them in the High Court, with an initial hearing expected to take place on Monday.

Anthony Albanese said last week the government had received “clear national security advice” that the proximity of the parcel of land to parliament could enable “potential interference” by Russian President Vladimir Putin’s envoys to Australia.

Australian officials were expecting Russia to file an injunction late this week to buy time to prepare a formal case, although the High Court must agree to hear the case if it is to proceed.

A spokesman for Home Affairs Minister Clare O’Neil said the Russian Federation had informed the commonwealth of its plans to challenge the laws in the High Court.

“Russia’s challenge to the validity of the law is not unexpected, this is part of the Russian playbook,” the spokesman said.

Russian President Vladimir Putin’s plans for a new embassy in Canberra have been thwarted. Picture: Sergei Bobylyov / AFP

Court documents show Russia is being represented in its High Court action by Canberra-based law firm Nelson & Hill Lawyers, which NCA NewsWire has attempted to contact for comment.

NCA NewsWire also contacted the Russian Embassy in Canberra, where a spokesman said: “We do not comment on the Yarralumla issue”.

Speaking before the injunction was filed, the Prime Minister brushed off concerns about the potential legal challenge, saying he was confident of the commonwealth’s ability to evict Russia from the site.

Mr Albanese vowed to stand up for Australia’s national security but downplayed any risks posed by a Russian diplomat who was discovered illegally squatting on the site formerly proposed for the new embassy.

“The national security threat that was represented by a Russian embassy on-site is not the same as some bloke standing on a blade of grass. We don’t see as a threat to our national security,” Mr Albanese said.

Last week’s legislative changes have invalidated Russia’s lease, making the diplomat — who was photographed at the site on Thursday dressed in casual attire and nonchalantly smoking a cigarette — an illegal squatter.

Opposition foreign affairs spokesman Simon Birmingham accused Mr Albanese of failing to take the issue seriously enough.

Senator Birmingham called on the government to explore every possible legal avenues to evict the squatter and to prevent Russia from occupying the contested site.