Permanent Court of Arbitration Rejects Rwanda's Claim Against UK in Asylum Agreement Dispute
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TL;DR
- The PCA tribunal ruled against Rwanda's £100 million payment claim from the UK.
- The dispute concerned payments under a cancelled asylum transfer pact.
- Ruanda's other claims, including compensation or an apology, were also dismissed.
- Ruanda stated it respects the arbitral award and considers the matter closed.
Overview
A tribunal at the Permanent Court of Arbitration has rejected all financial and non-financial claims brought by Rwanda against the United Kingdom concerning payments allegedly owed under their terminated asylum transfer agreement. Rwanda claimed the UK owed it £100 million for the second year of the agreement, as well as additional compensation or a formal apology for alleged breaches.
What Happened
Rwanda initiated arbitration against the UK before the Permanent Court of Arbitration (PCA), seeking £100 million in payments it claimed were still owed after the cancellation of their bilateral asylum transfer agreement.
The arbitral tribunal ruled by majority that the UK was not obligated to make the claimed second-year payment of £50 million, nor the subsequent £50 million annual payment.
Rwanda also alleged breaches of several articles of the agreement and sought £6 million in damages or a formal apology. These claims were unanimously rejected by the tribunal.
The decision was made public in early June 2026, and Rwanda's government stated it respects the outcome and considers the matter closed, although noting the legal complexity of the issues.
Context
The asylum transfer agreement, known as the 'Rwanda Plan,' was signed in 2022 by the then UK Prime Minister Boris Johnson to transfer certain asylum seekers from the UK to Rwanda.
The plan faced legal and political challenges and was ultimately declared unlawful by the UK Supreme Court, citing risks of refoulement. Following a change in UK government in 2024, the agreement was terminated.
The UK had already paid at least £240 million to Rwanda under the initial terms of the agreement.
Why It Matters
- This arbitral decision confirms that no further payments are required from the UK to Rwanda under the cancelled asylum pact.
- The ruling may influence future state-to-state agreements involving large advance payments and cancellation terms.