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Full Breakdown

Rwanda Seeks £100 Million from the UK Over Scrapped Refugee Deal

3/19/2026, 4:39:28 AM

Overview of the Dispute

Rwanda has initiated arbitration proceedings against the United Kingdom, claiming that Britain owes it £100 million ($134 million) under a controversial refugee resettlement agreement. This deal, established in 2022 by then-Prime Minister Rishi Sunak, aimed to transfer migrants arriving in the UK as stowaways or via boats to Rwanda for asylum processing. However, the agreement was scrapped by Prime Minister Keir Starmer on his first day in office in 2024.

Key Developments in the Arbitration

During a hearing at the Permanent Court of Arbitration in The Hague, Rwanda's Justice Minister and Attorney General, Emmanuel Ugirashebuja, stated that the UK had failed to notify Rwanda of the cancellation of the deal, leaving the country to learn about it through media reports. He emphasized that Rwanda had incurred substantial costs in preparation for the agreement, including establishing an asylum appeals chamber and creating necessary administrative structures.

The UK government is contesting Rwanda's claims, arguing that an agreement reached in November 2024 stipulated that Rwanda would waive the payments. This disagreement over the existence of such an agreement is central to the arbitration proceedings, which are expected to take several months to resolve.

Financial Implications

Yvette Cooper, who served as Starmer's home secretary at the time of the deal's cancellation, criticized the original plan as a significant misuse of taxpayer funds, estimating that it cost the UK approximately £700 million. This figure includes payments made to Rwanda, costs associated with chartered flights that were never executed, and salaries for over a thousand civil servants involved in the arrangement.

Legal Context and Criticism

The UK Supreme Court previously ruled that the Rwanda policy was unlawful, citing concerns that Rwanda does not qualify as a safe third country for migrants. This ruling has intensified scrutiny of the deal, which faced widespread criticism from human rights organizations and legal challenges.

Conflicting Reports & Gaps

While Rwanda asserts that the UK is legally obligated to fulfill its financial commitments under the scrapped deal, the UK government maintains that the terms of the agreement were altered in November 2024. The ongoing arbitration will need to clarify these conflicting claims and determine the validity of Rwanda's financial demands.

What's Next?

The arbitration panel is expected to deliberate on the evidence presented and issue a ruling in the coming months. The outcome will have significant implications for UK-Rwanda relations and the future of refugee resettlement policies.

Verbatim Quotes

  • “The United Kingdom did not do Rwanda the courtesy of informing it in advance. Instead, Rwanda was left to read about these developments in the media.” — Emmanuel Ugirashebuja, Rwanda’s Justice Minister and Attorney General.
  • “A lot of the arbitration is going to turn around on the proof of that agreement,” — Joelle Grogan, Visiting Senior Research Fellow at UCD Sutherland School of Law.
  • “most shocking waste of taxpayer money I have ever seen.” — Yvette Cooper, former Home Secretary.