KIEVL: Yanukovch accepted Azarov s resignation on Monday, saying the premier and his team will continue to serve until he appoints a new government.
The new prime minister will have to manage an economy that is heading into a recession due to a weakened external demand for Ukraine s main export, steel.
The national currency, the hryvna has also been weakened. Oleksandr Yefremov, a senior member of Yanukovych s party said that Azarov could be re-appointed.
Kiev has launched talks with the IMF on securing a new bailout loan. The previous aid program was frozen due to the government s refusal to implement unpopular austerity reforms.