Rwanda’s request for $134 million in compensation has been denied, raising concerns for other nations pursuing migrant return agreements.
Published June 1, 2026
An international tribunal has determined that the United Kingdom is not liable for compensating Rwanda with over £100 million ($134 million) for terminating a migrant deportation agreement.
The Permanent Court of Arbitration in The Hague dismissed Rwanda’s claims, stating that the UK should adhere to a controversial asylum plan that London had canceled in 2024.
Impact of Tribunal’s Decision
The tribunal’s rejection of Rwanda’s compensation claim raises serious implications for other countries aiming to establish “return hubs” as part of their efforts to present a firm approach towards irregular migration, particularly amidst rising support for far-right political parties across Europe.
In a detailed 76-page ruling issued on May 15, confirmed by the court on Monday, the three-judge panel concluded that diplomatic communications between the UK and Rwanda following the cancellation amounted to an informal agreement to forgo any payments, including the two installments of £50 million ($67 million) that Rwanda claimed were due in April 2025 and April 2026.
The tribunal also dismissed two additional claims from Rwanda related to alleged infringements of the partnership agreement, further solidifying the UK’s stance. A government spokesperson emphasized that the UK has consistently defended its position, and this ruling reinforces its commitment to border control reforms.
The Fate of the Asylum Deal
Originally initiated under former British Prime Minister Boris Johnson in 2022, the asylum deal intended to deter migrants arriving by small boats from seeking refuge in the UK. However, the plan was deemed illegal by the UK Supreme Court before it could be fully enacted. Upon assuming office in July 2024, Prime Minister Keir Starmer labeled the initiative “dead and buried,” criticizing it as a flawed scheme.
Critics of the plan, including then Home Secretary Yvette Cooper, condemned it as an egregious misuse of taxpayers’ money. Ultimately, only four individuals were sent to Rwanda under this scheme, all choosing to go voluntarily. Prior to the deal’s annulment, the UK had already transferred approximately £290 million ($390 million) to Rwanda.
Following unsuccessful diplomatic talks regarding the compensatory amounts, Rwanda initiated arbitration in November 2025, arguing that the UK was legally bound to comply with the treaty independent of domestic court decisions. However, a committee from the Permanent Court of Arbitration in The Hague concluded that Rwanda had consented, through diplomatic exchanges in November 2024, to waive further payments from the UK scheduled for April 2025 and April 2026.
This ruling represents a broader trend as the European Union explores the establishment of immigration centers in third countries. EU officials are expected to conclude discussions on return regulations shortly; however, they have remained largely silent on potential host nations following the collapse of Britain’s Rwanda plan and Italy’s withdrawal from a similar agreement with Albania.
