Ukraine's Prime Minister Mykola Azarov resigns Serhiy Arbuzov, who will serve as acting prime minister Mykola Azarov, Ukraine's prime minister, resigned on Tuesday and was replaced by his deputy, the latest attempt by the administration of President Viktor Yanukovich to defuse an escalating two-month stand-off with anti-government protesters. In a statement posted on the government website, Mr Azarov, a longtime Yanukovich loyalist and prime minister since 2010, explained his decision as being driven in the spirit of "compromise" and desire for a "peaceful resolution to the conflict." "The conflict situation which has emerged in the nation threatens the economic and social development of Ukraine, and carries with it a threat towards all of Ukrainian society and each citizen," Mr Azarov said. Mr Yanukovich accepted the resignation and ordered all ministers to remain in post as acting ministers until a new government is formed. Mr Azarov will be replaced by Serhiy Arbuzov, the first deputy prime minister, as acting prime minister, according to a statement from Mr Azarov's office. Mr Arbuzov, 37, is a former central bank chief and personally close to the Yanukovich family. Separately, in line with compromise talks between pro-presidential and opposition politicians, Ukraine's parliament voted by 361 votes to two to repeal controversial anti-protest legislation adopted on January 16 which imposed hefty fines and lengthy jail sentences on myriad protest activities. It remained unclear who would replace Mr Azarov as prime minister and what further compromise agreements both sides would agree upon to defuse Ukraine's worst crisis since independence in 1991. The development came hours after Mr Yanukovich late on Monday made a further concession to anti-government protesters, agreeing to repeal harsh anti-protest laws adopted this month that inflamed the demonstrations against him. On Monday, the fourth day of crisis talks between the president and opposition leaders, it was agreed that parliament would hold a vote of no-confidence in the government, and to work towards potentially reinstating an earlier constitution that boosted parliamentary powers and curtailed those of the president. Mr Yanukovich's administration also offered to grant amnesty to all protesters if they retreated from seized buildings in central Kiev and other cities, while also clearing streets for traffic in the capital. But the offer was unlikely to be accepted by protesters still calling for snap presidential and parliamentary elections. In another sign that the two sides remained far apart on many issues, opposition leaders Arseniy Yatseniuk and Vitali Klitschko officially refused Mr Yanukovich's offer made on Saturday to head a new government.