Bloomberg reported on Tuesday that Rwanda is demanding £50 million ($63 million) from the United Kingdom following the cancellation of a controversial asylum-seeker relocation agreement. The deal, initially brokered under former Prime Minister Rishi Sunak's government, was formally scrapped by Keir Starmer, prompting Rwanda to seek compensation for what it considers a violation of trust.

The arrangement, signed in 2022, aimed to transfer individuals seeking asylum in the UK to Rwanda, where their cases would be processed. However, Britain's Supreme Court ruled against the policy in September 2023, stating that Rwanda was not a safe destination for asylum seekers. Although the UK had already transferred a substantial portion of the agreed-upon funds, Rwandan officials insist that an additional £50 million is still owed.

A source familiar with the discussions stated that Kigali expects full payment, rejecting the UK's request to waive the outstanding amount. "It's about trust," the source told Reuters, suggesting that the abrupt policy shift has soured relations between the two nations.

M23 Controversy

The dispute over payments comes amid rising tensions over Rwanda's alleged support for the M23 rebel group operating in the eastern Democratic Republic of Congo (DRC). Britain recently halted some financial aid to Rwanda in response to these allegations, mirroring concerns raised by the US and the United Nations.

The UN Security Council recently urged Rwanda to withdraw all troops from Congolese territory and to cease backing the M23 movement. Meanwhile, reports of escalating violence in eastern DRC continue to surface. A UN statement revealed that M23 fighters recently abducted "at least 130 hospital patients" from the city of Goma.

Read more: Bukavu hospital patients shot in chaos of Congolese withdrawal

Adding to the diplomatic strain, the US government has imposed sanctions on Rwandan military officials, including General James Kabarebe. Washington accuses Rwanda of fueling instability in the region, but Kigali has pushed back against the claims. In response to the sanctions, Rwanda's foreign ministry dismissed the measures as "unjustified" and added that its border security remains a national priority.