Ukraine PM, Cabinet dismissed after parliamentary election

Ukraine's President has dismissed Prime Minister Mykola Azarov and his Cabinet following October's parliamentary elections.

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.

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