• Rwanda has filed arbitration against the UK for payments due under a canceled asylum deal.
• The UK government claims the deal, aimed at deterring illegal migration, was a financial failure.
• Discussions to negotiate new financial terms collapsed after the deal's termination.
• Rwanda's legal action emphasizes the need for formal acknowledgment of treaty obligations.
• Payments totaling £240m had already been made before the deal's abandonment.

Rwanda has initiated legal proceedings against the United Kingdom, claiming unpaid funds under a now-terminated agreement designed to relocate asylum seekers to Rwanda. The case has been filed with the Netherlands-based Permanent Court of Arbitration, where Rwanda seeks around £50 million in compensation, asserting that the UK failed to fulfill its financial obligations related to the treaty that allowed certain asylum seekers to be sent to East Africa. The agreement was scrapped by Prime Minister Sir Keir Starmer shortly after he took office in July 2024, who stated the deal was “dead and buried,” following its controversial implementation under the previous government, according to BBC and Al Jazeera.

The UK has previously disbursed approximately £240 million to Rwanda as part of the agreement, which was intended to deter people from crossing the Channel in small boats. However, only four asylum seekers were sent to Rwanda during the program, which faced severe legal and operational challenges. Following the termination, the UK government decided to cease further payments, asserting that £220 million in scheduled payments would no longer be made to Rwanda, as reported by Reuters and AA.

In its statement regarding the arbitration, the Rwandan government emphasized that it had sought diplomatic discussions prior to engaging in legal action but faced “the United Kingdom’s intransigence” on these matters. Rwanda's officials have indicated that without the successful negotiation of new financial arrangements, the remaining payments under the treaty are still due. Rwandan officials mentioned their regret at resorting to arbitration but viewed it as necessary due to the UK's failure to formally terminate the treaty and fulfill its obligations, according to Al Jazeera and Reuters.

While the UK government has maintained that the Rwanda scheme was a costly failure, the Rwandan leadership argues that they were entitled to uphold the agreement until a formal termination was negotiated. The strained relations between the nations further complicated the situation, especially following the UK's reduction of development aid over Rwanda's alleged support for rebel groups in the Democratic Republic of Congo. Despite these tensions, Rwanda continues to stress the importance of the legal proceedings to affirm its rights under the arbitration agreement, as mentioned in reports from BBC and AA.