The Rwandan government has launched legal action against the UK to seek payments it claims it is owed under a scrapped migrant deal between the two countries.

Rwanda has filed a case with the Netherlands-based Permanent Court of Arbitration, arguing the UK has failed to honour commitments made in a deal to send some asylum seekers to the African nation.

Under the deal, which was signed by the previous Conservative government, the UK agreed to make payments to Rwanda to host asylum seekers and support its economy.

But after Prime Minister Sir Keir Starmer axed the deal in 2024, the Home Office said £220m in 'scheduled future payments will not have to be paid' to Rwanda.

The BBC has asked the Home Office for comment.

The prime minister's spokesman said the government would 'robustly defend our position to protect British taxpayers'.

'The Rwanda scheme was a complete disaster,' the spokesman told reporters. 'It wasted £700m of taxpayer cash to return just four volunteers.'

The Rwandan government has not responded to the BBC's requests for comment. However, the country's ministry of foreign affairs pointed towards an article about the arbitration proceedings in the New Times, a Rwandan newspaper.

The article states that the arbitration 'concerns the performance of specific commitments under the treaty'.

The previous Conservative government spent around £700m on the Rwanda policy, which was meant to deter migrants from crossing the English Channel in small boats. Only four volunteers arrived in Rwanda when the deal was operational, and Sir Keir declared the plan 'dead and buried' shortly after Labour won the 2024 general election.

The deal included a break clause, which stipulated that each party may terminate the agreement by providing written notice. The £700m included £290m of payments to Rwanda.

In December 2024, the Home Office indicated that a further £100m in payments would have been due as per the treaty.

The New Times article quotes a government adviser stating that Rwanda engaged in diplomatic exchanges before initiating arbitration. Michael Butera, chief technical adviser to Rwanda's minister of justice, explained that through arbitration, Rwanda seeks a legal determination of the parties' respective rights and obligations under the treaty, following international law.

The treaty signed by Rwanda and the UK stipulates that any disputes not resolved between the countries would be referred to the Permanent Court of Arbitration (PCA).

The PCA, based in The Hague, Netherlands, is a forum for resolving international disputes between states and can issue binding resolutions if disagreements persist.

Rwanda initiated the arbitration proceedings in November, with the PCA listing the case's status as pending. Typically, the PCA establishes a timeline with parties outlining when to present arguments, and cases may take years to conclude.

Conservative shadow home secretary Chris Philp commented that the legal action is 'yet another catastrophic consequence of Labour's decision to scrap the Rwanda scheme'. He suggested this legal action could lead to a significant financial burden on British taxpayers.

The UK government previously stated it was assessing what funds could be recouped following the scheme's cancellation, while the Rwandan government asserts it is under 'no obligation' to repay any money.