Overview

• The UK has formally transferred sovereignty of the Chagos Archipelago to Mauritius under a £3.4 billion settlement while securing a 99-year lease on the Diego Garcia military base.
• Annual payments of £101 million to Mauritius form part of the financial package accompanying the transfer.
• Displaced Chagossians, who were removed in the 1960s to accommodate the base, were not consulted on the deal and continue to seek reparations.
• Critics warn the handover could undermine UK-US base operations and magnify Chinese and Russian influence in the Indian Ocean through Mauritius’s foreign policy ties.
• India has elevated its strategic partnership with Mauritius to counterbalance perceived shifts in regional power dynamics following the transfer.