Australia has blocked Russia from building a new embassy near its parliament, citing a spying risk.
Prime Minister Anthony Albanese said intelligence agencies had given “very clear security advice” on the move.
Laws specifically drafted to halt construction were rapidly passed today after legal attempts to block the Canberra development failed.
The Kremlin said it was “yet another unfriendly action” which Russia would “take into account” in the future.
The new legislation acknowledges that Russia may be eligible for financial compensation.
The current embassy will not be affected by the new laws, which have bipartisan support.
Moscow currently holds the lease for a patch of land, acquired in 2008, from Canberra’s Parliament House.
It has been laying the foundations for a new embassy building, but construction has proceeded slowly.
As relations between both countries soured in the wake of the invasion of Ukraine, Australia moved to rescind permission for the new building.
A previous attempt to cancel the lease was thrown out by the federal court last month, prompting the new legislation.
The Australian government has not said if it has security concerns about the Chinese embassy, which is close to the Russian site.