International Court Rules UK Not Liable for Rwanda Asylum Deal Payments

An international arbitration panel has ruled that the United Kingdom is not required to pay Rwanda compensation over a collapsed asylum deal, according to multiple reports. The Permanent Court of Arbitration (PCA) in The Hague rejected claims brought by Rwanda seeking more than £100 million (approximately $134 million) in payments it argued were still owed under the migration partnership agreement.

The decision, dated May 15 and formally announced on Monday, June 1, 2026, comes after a three-day hearing. The tribunal ruled that the UK was not liable for two years of outstanding costs from the scheme, which was scrapped by Prime Minister Keir Starmer shortly after he took office in July 2024.

Background of the Deal

The agreement was originally signed in 2022 by then-Prime Minister Boris Johnson, as reported by multiple outlets. It aimed to deter migrants arriving in the UK via "dangerous or illegal journeys" in small boats or lorries by sending them to Rwanda for asylum processing and potential resettlement. The Hindu noted that the deal involved payments to Rwanda to help cover costs, though the specific structure varied across reports.

The scheme faced legal and political obstacles from the start. According to The Guardian, the UK Supreme Court eventually ruled the policy illegal, determining that Rwanda was not a safe third country for migrants. The plan was also challenged in European courts.

When Keir Starmer became prime minister in July 2024, he declared the plan "dead and buried" on his first full day in office, dismissing it as a "gimmick," as quoted by multiple sources. His then-home secretary, Yvette Cooper, called it "the most shocking waste of taxpayer money I have ever seen," according to RFI and The Hindu.

The Ruling

Rwanda had sought two annual payments of £50 million each, which it argued were due in April 2025 and April 2026, according to reports from Al Jazeera, The Hindu, and others. The PCA panel, in a 76-page ruling, found that written diplomatic exchanges between the two governments after the UK scrapped the deal amounted to an agreement that these payments would not be made, as reported by multiple sources.

The tribunal rejected the first £50 million claim by a majority verdict and the second unanimously, according to RFI and Al Jazeera. It also rejected two other Rwandan claims linked to alleged breaches of the partnership agreement, as noted in several reports.

Reactions

The British government welcomed the decision. A government spokesperson said, "The UK robustly defended its position, and the tribunal has now ruled in favour of the UK on all grounds," as quoted by multiple outlets. The statement added that the government is "now focused on delivering vital reforms to restore order and control to our borders," according to Al Jazeera and other sources.

Rwanda's government spokesperson, Yolande Makolo, said Rwanda "respects the tribunal's award and considers the matter concluded," but also noted that a dissenting opinion showed "that the issues before the tribunal were complex and open to different legal conclusions," as reported by several sources. She added that Rwanda would "continue to work constructively with international partners, guided by international norms and mutually beneficial cooperation," according to one report.

Context and Impact

The deal was part of a broader UK policy to address irregular migration, which had become a significant political issue. During the two years before the scheme was scrapped, only four people were sent to Rwanda, all voluntarily, according to the current UK government, as reported by The Guardian and RFI. The UK had already paid approximately £290 million to Rwanda under the agreement, according to the UK government website, cited in multiple reports.

Observers have noted that the case could have broader implications for other governments seeking to establish "return hubs" or similar migration deals. Al Jazeera reported that the collapse of the deal and the compensation case "bodes ill for other governments seeking to secure 'return hubs' as proof of a tough stance on irregular migration amid surging support for far-right parties."

Looking Ahead

Both governments have indicated they consider the matter closed. The UK government emphasized its focus on border reform, while Rwanda expressed its commitment to continuing international cooperation. The ruling is seen as a significant legal victory for the UK, though debates over the effectiveness of such migration policies are likely to continue, as noted by AllAfrica.

This article is based on reports from Africa News, Al Jazeera, AllAfrica, The Guardian, RFI, The Hindu, and Deutsche Welle. Some reports noted that the deal was signed under Boris Johnson, while The Hindu attributed it to Rishi Sunak; the preponderance of sources indicates Johnson initiated the agreement.