The UK will be withholding £21m of aid to Rwanda amid concerns the state is supporting rebels in the Democratic Republic of Congo.
Announcing the decision, International Development Secretary Justine Greening said the money, which was due to be handed over next month, would not be released because President Paul Kagame's regime had breached agreements.
"The Government has already set out its concerns over credible and compelling reports of Rwandan involvement with M23 in DRC," she said.
"This evidence constitutes a breach of the partnership principles set out in the Memorandum of Understanding and, as a result, I have decided not to release the next payment of budget support to Rwanda.
"We are committed to finding lasting solutions to the conflict in this region and will work with the Governments of Rwanda and DRC to secure a peaceful resolution to the situation in eastern DRC."
Pressure to halt aid payments intensified earlier this month when UN experts presented more evidence of Rwanda's involvement in fuelling the conflict.
Violence in DRC has been spiralling, with reports of summary executions by the rebel M23 group and growing numbers of refugees.
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