Rwanda has launched legal action against the UK, claiming it is owed money following the cancellation of a controversial migrant relocation agreement between the two countries.
The case has been filed with the Netherlands-based Permanent Court of Arbitration, with Rwanda arguing that the UK failed to meet financial commitments set out in the deal.
The agreement, signed under the previous Conservative government, allowed the UK to send some asylum seekers to Rwanda in exchange for payments to support the country’s economy.
However, Prime Minister Sir Keir Starmer scrapped the scheme in 2024 after Labour came to power, with the Home Office stating that £220m in future payments would no longer be made.
Downing Street said the government would robustly defend its position, arguing the policy was a failure that cost taxpayers around £700m while relocating only four volunteers.
The Rwandan government has not formally commented, but its foreign ministry referred to a report in the state, which said the arbitration focuses on whether specific treaty commitments were fulfilled.
According to the Home Office, the total cost of the policy included £290m already paid to Rwanda, with a further £100m due over the 2025–26 and 2026–27 financial years, as well as an additional £120m that would have been triggered by the transfer of 300 people.
Rwanda has previously said it is under no obligation to refund any of the money received.
A Rwandan government adviser told the media that diplomatic efforts were made before arbitration was launched. Rwanda’s justice ministry said the case seeks a legal ruling on the rights and obligations of both parties under international law.
Under the treaty, unresolved disputes were to be referred to the Permanent Court of Arbitration in The Hague, which can issue binding decisions.
The court has confirmed that proceedings began in November and that the case is currently pending, with no timetable yet set.
Conservative shadow home secretary, Chris Philp criticised Labour’s decision to cancel the scheme, claiming it had exposed taxpayers to further financial risk.
The UK government has previously said it was exploring whether any funds could be recovered following the deal’s cancellation.
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