The Russian government could lose its right to land for a new embassy if it doesn't show signs of using its existing vacant plot, according to the chief planner for the National Capital Authority.
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Andrew Smith has threatened to have the lease withdrawn if the Russians didn't show signs of building on the prime Yarralumla block in the diplomatic enclave.
Mr Smith said that the Australian authorities weren't at the point of withdrawing permission yet, but he raised the possibility in a recent parliamentary hearing.
The situation was "unsatisfactory", he said, adding, "It's a large site. It's prominent".
There were "levers" available that could be used. "We could withdraw the lease. If we were of a mind to, we could further put pressure on the Russian government to complete that project."
The site which is within view of Parliament House has been surrounded by a fence but no construction work appears to have started.
The saga of unused land in a prime Canberra area has been long-running.
Russia was reported to be starting work back in 2015, but then, last year, it said that the builder had gone broke. Since then, there has been some dialogue with the Australian authorities but not progress on the site.
"We've gone back to them and said, 'Look, you've got to start'," Mr Smith said. He was waiting for a response.
The Russian embassy didn't respond to requests from The Canberra Times for comment.
The National Capital Authority chief planner was also exasperated by delays in getting work started on a new Iranian embassy. "We continue to pressure the Iranians," he said after the hearing.
In the Iranian case, one of the difficulties has been the death of the original architect, though the allocated land has been empty for decades.
It was given a deadline for work to at least begin in 2015 and plans were produced but the death then set everything back.
The authorities now feel that the delay caused by the death is excessive. "We continue to pressure the Iranians in regard to commencement of work but they are less communicative than the Russians, I have to say", Mr Smith said.
Threats of "use it or lose it" have been made in the past. There was an enquiry into vacant, prized blocks of land in 2012 and a get-tough policy emerged. It's now being mooted again.
Mr Smith said one of the issues was that the demand for land for embassies seemed to have increased. More countries seemed to be wanting their own purpose-built premises in scarce Canberra space rather than using existing houses or offices.
The issues's been driven politically by Gai Brodtmann, the Labor MP for the area and a former Australian diplomat.
She told the hearing she was frustrated by the lack of progress on the site for the new Russian embassy. "A fence does not an embassy make," she said.
She said the problem of embassies tying up unused land needed to be pressed with vigour.
"We were going to implement this policy of 'use it or lose it'," she said. "There was a flurry of activity when we started a few years ago but things haven't progressed much."
