The back-rower then agreed terms with the Dragons but announced he will join Bath next summer after talks with the WRU broke down.
"I am very disappointed at the WRU. We had agreed a new contract with Taulupe and he was happy to stay with us," Hazell was quoted as saying by British media.
"It required the union to come up with more money and they wouldn't. I don't blame him for moving to Bath.
"We have been turned over by our own union. This affair has cost us 400,000 pounds in the transfer fee from Bath, who throughout all this have been excellent, and in wages.
"We will now receive nothing when Taulupe leaves us at the end of the season at the end of his contract, and the WRU will not give us any compensation."
(Reporting by Shravanth Vijayakumar in Bengaluru; editing by Sudipto Ganguly)
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