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The government of Rwanda has announced that it is pursuing an international arbitration claim against the United Kingdom, seeking payment of £100 million related to an asylum agreement that was cancelled by Prime Minister Sir Keir Starmer. This agreement, initially established under the previous Conservative government, involved the UK making financial contributions to Rwanda to host asylum seekers who had entered Britain illegally. Rwanda’s decision to initiate arbitration comes amid frustration over what it describes as the UK’s unwillingness to resolve disputes concerning the deal.
Rwanda’s official statement outlines three main grievances: the UK’s breach by publicly disclosing the financial details of the agreement, the failure to fulfill payments totaling £100 million, and the refusal to arrange the resettlement of vulnerable refugees currently in Rwanda. The partnership, signed in 2022 during Boris Johnson’s premiership, also included a provision for the UK to resettle a small number of vulnerable refugees already hosted by Rwanda, not those transferred from the UK. At the time, the Home Office anticipated this could affect “tens” of individuals with complex humanitarian needs, such as severe health issues.
Despite spending around £700 million on the policy aimed at deterring small boat Channel crossings, the scheme saw minimal implementation, with only four volunteers arriving in Rwanda before the plan was discontinued. Following Labour’s victory in the 2024 general election, Sir Keir described the strategy as “dead and buried.” The agreement contained a clause allowing either party to terminate it by written notice, leading to the treaty’s end being set for 16 March 2026. The £700 million included £290 million paid directly to Rwanda, with further payments of £100 million due over the following two financial years, alongside an additional £120 million contingent on transferring 300 people to Rwanda.
Government spokespeople have emphasized their intention to defend the UK’s position, labeling the previous administration’s Rwanda policy a misuse of taxpayer funds. Rwandan officials report that in November 2024, the UK requested deferral of two £50 million payments due in 2025 and 2026, and although Rwanda indicated willingness to accept this under new negotiated terms, no further discussions took place. The UK subsequently informed Rwanda of the agreement’s termination, and Rwanda asserts that the UK has expressed no intention of making further payments or fulfilling commitments to resettle vulnerable refugees in the UK.
Any unresolved disputes from the treaty are being addressed via the Permanent Court of Arbitration (PCA) in The Hague, an international body that issues binding rulings in such cases. The PCA has yet to announce a schedule for handling Rwanda’s complaint, but cases can often extend over several years. Meanwhile, opposition figures have criticized Labour for abandoning the policy, warning that the UK taxpayer faces a costly fallout. The UK government had previously indicated efforts to recover funds spent before scrapping the scheme; however, Rwanda maintains it is under no obligation to return any monies
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