The Permanent Court of Arbitration in The Hague (Netherlands) ruled on Monday (June 16) to reject all of Rwanda's compensation claims in a case linked to a migration deal canceled by the UK. Rwanda had previously demanded the UK pay over £100 million (approximately $134 million) under the terms of this contentious agreement.
According to the 76-page ruling, a three-judge panel determined that diplomatic exchanges between the two governments after the UK canceled the deal constituted an agreement that the payments—including two installments of £50 million ($67 million) each that Rwanda argued were due in April 2025 and April 2026—would not be made. The panel also dismissed two other Rwandan claims related to alleged breaches of the partnership agreement.
A spokesperson for the UK government stated: 'The UK firmly defended its position, and the court ruled in favor of the UK on all counts.' London said it is focusing on 'crucial reforms to restore order and border control.'
The original agreement was signed in 2022 by former UK Prime Minister Boris Johnson, aiming to deter migrants from reaching the UK by small boats or trucks by sending them to Rwanda for asylum processing. However, the deal was rejected as unlawful by the UK Supreme Court before it could be fully implemented. Prime Minister Keir Starmer canceled the agreement on his first day in office in July 2024, calling it 'dead and buried' and a 'con trick.'
Britain's then-Home Secretary Yvette Cooper described the deal as 'the worst waste of taxpayer money I have ever seen.' Only four individuals traveled to Rwanda under this program, all voluntarily. The UK had paid approximately £290 million ($390 million) to Kigali before the deal was terminated.
Rwanda argued that the UK was obligated to comply with the terms of a legally binding treaty regardless of rulings by UK domestic courts and initiated arbitration in November 2025 after diplomatic talks failed to reach an agreement on outstanding payments. However, the arbitral panel concluded that Rwanda, in diplomatic correspondence, had agreed in November 2024 'to waive any additional payments from the United Kingdom in April 2025 and April 2026.'
This case is seen as a lesson for other governments seeking to establish 'return hubs'—part of a strategy to show a hardline stance on illegal migration, which is rising as far-right parties gain support. The European Union (EU) is the latest bloc attempting to set up migration centers in third countries, targeting an agreement on a Return Regulation earlier this week. However, following the failure of the UK's Rwanda plan and the scrapped Italy-Albania deal, Brussels remains tight-lipped about which countries it hopes could host migration centers.
