Rwanda has sued the United Kingdom over unpaid funds from their canceled asylum deal. The Rwanda asylum deal lawsuit was filed at the Permanent Court of Arbitration in The Hague. It demands about $138 million in missed payments.

The dispute centers on a 2022 agreement. Under it, the UK promised to pay Rwanda to take in asylum seekers who entered Britain illegally. But in 2023, the UK Supreme Court ruled the plan unlawful. Prime Minister Keir Starmer’s government officially ended it in 2024.

Rwanda says UK officials asked it in 2024 to skip two scheduled payments. Each payment was worth roughly $69 million—due in April 2025 and April 2026. Kigali agreed—but only if the UK formally ended the treaty and discussed new terms. Those talks never happened. So Rwanda insists the money is still owed.

Before scrapping the deal, the UK had already sent nearly $331 million to Rwanda. A spokesperson for Starmer said Britain will “robustly defend our position to protect British taxpayers.” The government now favors “effective ways to stamp out illegal migration, not costly gimmicks.”

This legal fight comes amid wider tensions. Last year, the UK paused some aid to Rwanda. It accused Kigali of backing the M23 rebel group in the Democratic Republic of the Congo. Rwanda denies supporting the militia. It blames Congolese and Burundian forces for recent violence that killed thousands and displaced many more.

In short, the Rwanda asylum deal lawsuit shows the fallout from a failed migration policy. While the UK wants to move on, Rwanda demands payment under the original contract. The case could shape how countries handle compensation after canceling sensitive international deals.

READ: BRICS Bets on Digital Payment System Over New Currency