In its statement, the Rwandan government said in November 2024, the UK requested that Rwanda forgo two payments of £50m that were due in April 2025 and April 2026.
The statement added: “Rwanda indicated it was prepared to accept these arrangements should the treaty be terminated, provided that new financial terms would be negotiated and agreed.
“Discussions between Rwanda and the United Kingdom did not however ultimately take place and the amounts remain due and payable under the treaty.”
Rwanda’s government said the UK had “made clear that it has no intention of making any further payment” under the treaty, or honouring “its further commitment to make arrangements to resettle in the UK a portion of the most vulnerable refugees hosted in Rwanda”.
“Disappointingly, Rwanda’s attempts to move the UK from its entrenched position have been unsuccessful,” the statement said.
It said the UK notified Rwanda of the termination of the treaty after responding to the east African country’s notice of arbitration in November last year.
Rwanda said the formal termination of the treaty will take effect on 16 March 2026.
The Home Office has been contacted for a further comment.
In the treaty signed by Rwanda and the UK, both countries agreed any dispute that could not be settled among themselves would be referred to the Permanent Court of Arbitration (PCA).
The PCA, which is headquartered in The Hague, Netherlands, is a forum for resolving international disputes between states.
It is a process that is similar to arbitration that companies regularly agree to as an alternative to potentially damaging and lengthy court battles.
The PCA has the power to issue binding, final rulings if disputes cannot be settled by the countries involved.
The PCA has not yet indicated how and when the complaint from Rwanda will be handled.
The arbitration body typically sets a timetable with the parties specifying when they need to present their arguments – and the cases can take years to resolve.
Conservative shadow home secretary Chris Philp said the legal action was “yet another catastrophic consequence of Labour’s decision to scrap the Rwanda scheme before it even started”.
“This legal action means the British taxpayer is now facing a huge bill for Labour’s weakness and incompetence,” Philp said.
He said Labour was “too weak to see this crucial policy through, and it’s the British taxpayer who is left to pay the price”.
The UK government previously said it was looking at what money could be recouped after scrapping the scheme.
But the Rwandan government has said it is under “no obligation” to refund any money.