Australia's Prime Minister Anthony Albanese on Friday said the country's national security was not under threat after local media reported that a Russian diplomat appeared to be squatting on the site of Moscow's proposed embassy.

"Australia will stand up for our values and we will stand up for our national security and a bloke standing in the cold on a bit of grass in Canberra is not a threat to our national security," Albanese told reporters outside his Parliament House office.

Russia's embassy lease scrapped

Earlier in June, Canberra passed emergency legislation to block Moscow from building an embassy at the location for security reasons.

This was due to Australian security officials advising that the premises would be too close to Parliament House and potentially expose lawmakers to Russian attempts at espionage.

On Thursday, The Australian newspaper reported that a Russian diplomat was squatting on the land and was being monitored by police — who were unable to arrest him because he has diplomatic immunity.

The publication reported that the man had been seen smoking outside his accommodation and was a Russian diplomat.

While the official Russian Embassy has yet to comment on the situation, an Australian government spokesman told AFP news agency that Russia had decided to "challenge the validity of the legislation on constitutional grounds" at the High Court.

On Wednesday, Russia placed entry bans on 48 Australians in retaliation for Canberra's sanctions against Moscow.

Australia is one of the largest non-NATO contributors to Ukraine in its fight against a Russian full-scale invasion and has been supplying aid, ammunition and defense equipment while it has banned exports of alumina and aluminum ores, including bauxite, to Russia.

kb/sms (Reuters, AP, AFP)