Ukrainian Prime Minister Arseny Yatsenyuk announced his resignation on Thursday over parliament's "ineffectiveness" after two political parties withdrew from Ukraine's ruling coalition.

"I am announcing about my resignation due to the collapse of the coalition and blocking of the government initiatives," Yatsenyuk said while speaking in the parliament.

He said the break-up of the ruling coalition means the parliament is unable to work in a proper way and pass the laws needed for normal functioning of the economy.

Earlier in the day, two political parties, Ukrainian Democratic Alliance for Reforms or "Udar" and the National Patriotic Party "Freedom", announced their departure from the parliamentary coalition.

Following the move, the parliament failed to approve the bills on the state budget amendments, on the country's future energy policy and on increasing funding for the army, as government demanded.

The ruling coalition, "the European Choice", was formed in the parliament in late February after the ouster of ex-President Viktor Yanukovych and the former government.

Yatsenyuk took over as the country's new prime minister on Feb. 27.