The Northern Secretary, Mr Paul Murphy, called the IRA decision to suspend contact with Gen De Chastelain's decommissioning body "regrettable and disappointing" while unsurprising.
"The Prime Minister has made it clear that all paramilitary activity needs to come to an end if the political process is to succeed," he added.
According to Mr David Trimble, the IRA has failed to "honour its undertakings" and the peace process will remain in a crisis until it does so.
Mr Trimble said republicans "were in a hole and digging deeper", adding that the statement could be seen as some in the movement "preparing others for the inevitable".
"They know what has to be done," he said. "They know the agreement meant, or should have meant, an end to paramilitarism. They are late in delivering that, they know that the time for dodging their commitments is over and the time for them to deliver on what they agreed to do years ago has come." Another senior Ulster Unionist said the statement highlighted a lack of cohesion among republicans over the peace process.
Mr Michael McGimpsey said: "Either Mr Adams and Mr McGuinness are insincere about the peace or else they are losing or have lost control of their movement."
The DUP treated the IRA statement with contempt. The East Londonderry MP, Mr Gregory Campbell, said: "Given the charade which the decommissioning process has become and the failure of the IRA to take any meaningful steps to disarm, this latest move is nothing short of meaningless. Contact over the previous six months has not made one shred of difference."
He said the statement was a diversion, claiming that the Provisionals were still active and very much in business.
The Conservative spokesman on the North, Mr Quentin Davies, accused republicans of speaking with two voices.
"Gerry Adams and Martin McGuinness have sounded conciliatory over the past few days. Other elements are playing hard to get. These are classic IRA tactics. They are attempting to intimidate the [British] government, and this is a moment when the government must keep its nerve".
The Alliance leader, Mr David Ford, said: "Now is the time for Mr Adams and Mr McGuinness to use their influence to ensure that all sections of the republican movement engage constructively with all aspects of the agreement".