Australia's High Court has ruled in favor of the government, confirming the cancellation of Russia's lease for a new embassy site near Parliament House. The decision was made after Australian officials deemed the location a security threat, prompting legislation to revoke the lease. The court found that the government's actions were a valid exercise of its legislative power. Although Russia criticized the move as 'Russophobic hysteria' and challenged the legality of the cancellation, the court upheld the government's stance. However, it also ruled that Russia is entitled to compensation for the lease it paid in 2008. This ruling comes amid strained relations between Australia and Russia, exacerbated by events such as the downing of Malaysia Airlines flight MH17 and Russia's invasion of Ukraine.