diff --git a/server/src/com/cloud/network/NetworkManagerImpl.java b/server/src/com/cloud/network/NetworkManagerImpl.java
index eb176f7f49f..45f335fbbd8 100755
--- a/server/src/com/cloud/network/NetworkManagerImpl.java
+++ b/server/src/com/cloud/network/NetworkManagerImpl.java
@@ -170,7 +170,6 @@ import com.cloud.user.User;
 import com.cloud.user.UserContext;
 import com.cloud.user.dao.AccountDao;
 import com.cloud.user.dao.UserStatisticsDao;
-import com.cloud.uservm.UserVm;
 import com.cloud.utils.NumbersUtil;
 import com.cloud.utils.Pair;
 import com.cloud.utils.component.Adapters;
@@ -1929,15 +1928,14 @@ public class NetworkManagerImpl implements NetworkManager, NetworkService, Manag
         if (_accountVlanMapDao.findAccountVlanMap(ipVO.getAllocatedToAccountId(), ipVO.getVlanId()) != null) {
             throw new InvalidParameterValueException("Ip address id=" + ipAddressId + " belongs to Account wide IP pool and cannot be disassociated");
         }
+        
+        //don't allow releasing elastic ip address
+        if (ipVO.getElastic()) {
+        	throw new InvalidParameterValueException("Can't release elastic IP address " + ipVO);
+        }
 
         boolean success = releasePublicIpAddress(ipAddressId, userId, caller);
         if (success) {
-        	Long vmId = ipVO.getAssociatedWithVmId();
-        	UserVm vm = null;
-        	if (vmId != null) {
-        		vm = _userVmDao.findById(vmId);
-            	return _rulesMgr.enableElasticIpAndStaticNatForVm(vm, true);
-        	}
         	return true;
         } else {
         	s_logger.warn("Failed to release public ip address id=" + ipAddressId);
diff --git a/server/src/com/cloud/network/rules/RulesManagerImpl.java b/server/src/com/cloud/network/rules/RulesManagerImpl.java
index 3e28d229e18..ef1173c8b19 100755
--- a/server/src/com/cloud/network/rules/RulesManagerImpl.java
+++ b/server/src/com/cloud/network/rules/RulesManagerImpl.java
@@ -1022,22 +1022,13 @@ public class RulesManagerImpl implements RulesManager, RulesService, Manager {
     	Account caller = ctx.getCaller();
     	IPAddressVO ipAddress = _ipAddressDao.findById(ipId);
         checkIpAndUserVm(ipAddress, null, caller);
-        
-        Long vmId = ipAddress.getAssociatedWithVmId();
+                
+        if (ipAddress.getElastic()) {
+        	throw new InvalidParameterValueException("Can't release elastic IP address " + ipAddress);
+        }
 
-    	boolean success = disableStaticNat(ipId, caller, ctx.getCallerUserId(), false);
-    	if (success && vmId != null) {
-    		s_logger.debug("Allocating ip and enabling static nat for vm id=" + vmId + " as a part of disassociateIp command");
-    		UserVm vm = _vmDao.findById(vmId);
-    		success = enableElasticIpAndStaticNatForVm(vm, true);
-    		if (!success) {
-        		s_logger.warn("Failed to allocate ip and enable static nat for vm id=" + vmId + " as a part of disassociateIp command");
-    		} else {
-    			s_logger.debug("Successfully allocated ip and enabled static nat for vm id=" + vmId + " as a part of disassociateIp command");
-    		}
-    	}
+    	return disableStaticNat(ipId, caller, ctx.getCallerUserId(), false);
     	
-    	return success;
     }
 
     @Override @DB