His announcement comes after weeks of protests took place in all the cities of Ukraine, especially in Kiev.
As many as one hundred and thirty thousand protested each day in the capital city.
Police were unable to clear out the protesters on Tuesday, and only partially successful on Wednesday.
Their failure forced the administration to face the reality of the people's anger over Yanukovych attempting to back out of the deal.
Yanukovych had instead decided to seek closer ties with Russia.
Many Ukrainians worry that Yanukovych is taking their country back under Russian influence and fear a loss of their independence from their former Soviet masters.
The protests gained steam after three former presidents backed them.
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