The Commonwealth is considering its next move after being ordered to compensate Russia for forcefully acquiring land earmarked for an embassy.

The High Court ruled federal laws passed to reclaim land the former Soviet nation had leased to build a new embassy in Canberra on national security grounds were valid.

But the Commonwealth was liable to pay a reasonable amount of compensation for acquiring the land under the constitution, it said in its judgment on Wednesday.

The Commonwealth will need to pay half of Russia's cost for the case.

The court rejected Russia's argument the laws weren't supported by the constitution.

Federal parliament can make laws about acquiring property but needs to do so "on just terms" as outlined in the constitution, the High Court's reasons stated, rejecti

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