As Ukraine deals with the conflict with separatists in the east of the country, and the downing of the Malaysia Airlines plane, it has been thrown into new political turmoil.

The country’s prime minister, Arseniy Yatsenyuk, has resigned.

“I declare my resignation because of the dissolution of the coalition,” he said, “and because of government initiatives that have been blocked.”

Yatsenyuk criticised parliament for failing to back laws designed to stabilise the energy sector and increase military spending. Earlier two parties quit the government coalition, and the country now faces new elections.

Oleh Tyahnybok, the leader of the nationalist Svoboda party, and one of the parties that quit the coalition, said: “The president may declare early elections, but we insist that martial law must be introduced before then. We believe it’s the only chance to ensure peace and tranquility in the east of Ukraine.”

President Poroshenko welcomed the decision by the two parties to quit the coalition government, saying society wants a “full reset of state authorities”.

Mykhaylo Chechetov, a member of the former ruling Party of Regions, said: “Of course will go to the polls. Today there is no coalition. And we will set up the party machine to participate in the election campaign:”

The collapse of the government comes amid high political tension. Yesterday another fight broke out in parliament amid accusations that some MPs support the separatists.

Ukraine has a new president, but is yet to hold parliamentary elections after President Yanukovich was ousted in February.