The exercise has been scheduled for July 19-28 in the north of the Black Sea.
The ministry said the exercise had been called off because the USS Barry, which was to have been used as command and control center for the exercise, had been sent on an evacuation mission to Lebanon.
Lebanon's prime minister has said more than 300 have been killed since Israeli missile and air strikes started over a week ago, and hundreds of thousands have been forced to flee. Israelis casualties from attacks mounted by militant group Hizbollah have been put at 29.
Legislators in the southern Crimea region declared the peninsula a NATO-free zone after a U.S. cargo ship, the Advantage, called at the Black Sea port of Feodosia on May 27 ahead of Sea Breeze 2006, sparking mass protests in the largely Russian-speaking area.
Ukraine's Foreign Ministry said in May the country had originally planned to host six multinational military exercises in 2006, including exercises with the United States and other NATO countries.
But the ministry said that the country's parliament, the Supreme Rada, would have to give permission for the exercises to be held after it banned foreign troops from participating in military exercises in Ukraine in early 2006.
