Ukraine does not plan to continue with a joint project with Russia on the construction of a nuclear fuel plant in Kirovohrad region, Ukrainian Energy and Coal Industry Minister Volodymyr Demchyshyn said.

"We will break off [relations], they are not honoring their commitments [for the third and fourth units of the Khmelnytsky NPP] either," he told reporters in Kyiv on Tuesday.

Demchyshyn said earlier that that the agreement with Russia on the construction of the nuclear fuel plant was of no real importance and could be severed.

Ukraine is not satisfied with a number of conditions in the contract between the state Nuclear Fuel concern and Russia's TVEL to produce nuclear fuel, Ukrainian Deputy Energy and Coal Industry Minister Vadym Ulyda said in July 2014. "We have questions about the contract on the format of interaction, license terms. We raised these questions and are waiting for an answer," he said at the time.

The Ukrainian government in September 2010 named TVEL the winner of a tender to select technologies for the construction of a nuclear fuel plant.

A site measuring 6.8 hectares in Smoline, Kirovohrad region, was allocated for the plant. Nuclear Fuel owns a 50% plus one share in the company and TVEL owns 50% minus one share.

It was envisaged that the shareholders would invest about $100 million -$120 million in the plant on an equal footing and later raise loans for the estimated $450-million project.

The plant was supposed to start producing fuel elements and assemblies as well as zirconium and stainless steel components in 2015, and fuel powders and pellets in 2020.