The leadership of the Ulster Volunteer Force and Red Hand Commandos are tonight warning its commitment to the peace process is under "adverse strain".
In a statement this evening, it accused the IRA of the wholesale sectarian targeting of unionist people throughout the North.
It also warned the British and Irish governments not to make unilateral concessions to republicans as part of any attempt to revive the devolved institutions.
In a statement released to the BBC, the group's leadership said: "The words and actions of the republican movement have consistently created instability for the people of Northern Ireland.
"Their New Year statement displayed total arrogance amid a blind refusal to accept any modicum of complicity for the current stalemate.
"Such patent intransigence conveys an implicit threat to the peace process."
The statement said the group's leadership had shown a genuine and meaningful commitment to the search for an honourable settlement in Northern Ireland.
"Today that commitment faces adverse strain."
The Northern Ireland Assembly has been suspended since October last year following allegations that an IRA spy ring was operating at the heart of the Stormont government.
The Progressive Unionist Party, which is linked to the UVF, currently holds two seats in the devolved administration.
The statement comes a week after party leader Mr David Ervine announced it was withdrawing from talks aimed at restoring devolution after claiming it was being excluded from negotiations.
Mr Ervine said his colleagues could not be expected to "rubberstamp" a deal they had no sight of during negotiations.
Tonight's statement is believed to have followed a review of the peace process by the UVF and the Red Hand Commandos and it has been suggested that further developments in the coming days may show the extent of the organisations' lost confidence.
PA