By citing a spying risk, Australia has prevented Russia from constructing a new embassy close to its legislative building.
The move had received "very clear security advice," according to Prime Minister Anthony Albanese, from the intelligence community.
Following the failure of legal efforts to halt the Canberra development, laws designed to halt construction were swiftly passed on Thursday.
The new laws, which have bipartisan support, won't have an impact on Moscow's existing embassy.
The new law also recognizes that Russia might be entitled to financial compensation.
The embassy is seeking legal counsel in the wake of the announcement, a Russian diplomat told AFP.
Currently, Moscow is the tenant of a plot of land that was purchased in 2008 and is 400 meters (0.25 miles) from the Parliament Building.
A new embassy building's foundation has been laid, but construction has been slow. .
In response to Russia's invasion of Ukraine, relations between Australia and Russia deteriorated, and the former moved to revoke the building permit.
The new legislation was prompted by the federal court's rejection of an earlier attempt to terminate the lease last month.
The House of Representatives passed the laws in less than five minutes after they were introduced.
When it comes to international law, Mr. Albanese said, "We don't expect Russia to be in a position to talk about it, given their rejection of it so consistently and so brazenly with their invasion of Ukraine." Mr. Albanese called Russia's invasion of Ukraine "illegal and immoral.".
Russian intelligence services are among the "largest, most capable, most aggressive, and least constrained" in the world, according to former UK diplomat Alex Bristow of the Australian Strategic Policy Institute.
Given the proximity, he continued, "it might be a form of electronic surveillance running out of the embassy.".
The Chinese embassy, which is close to the Russian site, has not been the subject of any comments from the Australian government regarding security issues.