A court in The Hague dismissed a lawsuit from Rwanda, ruling that the United Kingdom does not owe compensation for a cancelled asylum partnership.

The decision ends a legal battle over the financial obligations of the UK after a change in government led to the termination of a deal to relocate asylum seekers. The ruling prevents the British government from paying millions in damages to the East African nation.

The legal dispute began after Prime Minister Keir Starmer scrapped the 2022-2023 Rwanda asylum agreement in July 2024, shortly after taking office [1]. Starmer said the Rwanda partnership was no longer viable and had been scrapped as soon as his government took office [2].

Rwanda sought compensation for the collapse of the agreement. A source close to the Kigali government said Rwanda was seeking a payment of about £50 million, or U.S.$63.6 million [3]. Other reports indicated the demand may have exceeded £100 million [4].

The Court of Arbitration in The Hague found no legal basis for the claim [1]. This means the UK will not be required to pay the requested sums to the Rwandan government [1].

"The UK will not have to pay Rwanda any further sums following the court's decision," a UK government spokesperson said [1].

The partnership had been a centerpiece of previous UK government policy, aimed at deterring illegal migration by processing asylum claims in Rwanda. However, the new administration determined the program was ineffective and legally unsustainable upon its inception in July 2024 [2].

The UK will not have to pay Rwanda any further sums following the court's decision.

This ruling provides a significant legal and financial victory for the current UK administration by removing the risk of a multimillion-pound payout for a policy it did not initiate. It validates the government's decision to terminate the partnership on viability grounds and closes a contentious chapter of UK migration policy that had faced years of domestic and international legal challenges.