Ukraine: Yanukovitch accepts cabinet resignation

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Ukrainian President Viktor Yanukovich has accepted the resignation of Prime Minister Mykola Azarov and his cabinet.

The president asked them to stay on in an interim capacity.

A number of cabinet members were re-elected in October and therefore expected to resign their posts.

Azarov has led tough and so far unsuccessful negotiations with Moscow in an attempt to get a reduction in the price Kiev pays for Russian gas.

Yanukovich now has the option of re-appointing Azarov and individual ministers if he so chooses.

There is talk in the capital that the president may discard Azarov and replace him with central bank chief Serhiy Arbuzov.

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