MOSCOW. Dec 31: President Boris Yeltsin announced on national television today that he had resigned and presidential elections will be held within 90 days to replace him. reports AP.

The announcement caught Russia by total surprise, and is likely to launch the country into yet another political crisis as parties scramble for unexpected presidential elections.

Prime Minister Vladmir Putin, the country's most popular politician, immediately took control of the government and will serve as acting president until the elections.

Looking pale and grim in a speech on national television, the 68-year-old Yeltsin said it was time for him to go. He asked Russians to forgive him for his mistakes and failing to realise their dreams after the fall of the Soviet Union.

Today, on the last day of the outgoing century. I resign." said Yeltsin, speaking in front of a gaily-decorated New Year's tree and a blue, red and white Russian flag with a golden Russian

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"1 am stepping clown ahead of term. 1 understand that I must do it and Russia must enter the new millennium with new politicians, with new faces, with new intelligent, strong, energetic people, and we who have been in power for many years must go." Yeltsin said.

It was yet another unexpected move by Yeltsin, who has presided over Russia through eight tumultuous, often chaotic years. His attempts to build a market economy were deeply flawed by corruption and incompetence. and he became widely disliked by most Russians.

Looking emotional. Yeltsin asked several times for forgiveness for not solving Russia’s problems.

"I beg your forgiveness for having failed to |ump In one leap from the gray, stagnant, totalitarian past to the clear, rich and civilized future.” he said.

“I am leaving. I've done what I could." he added.

The Russian stock market Jumped to a 15-month high on the news, with dealers saying the hopes of strong new leadership after Yeltsin would boost the economy.

Yeltsin turned over to Putin the nuclear suitcase, which contains the codes to launch nuclear weapons. Yeltsin also gave Putin medals symbolizing his presidential status ana his presidential pen. while Russia's Orthodox Patriarch Alexy II looked on.

Yeltsin then left for his country residence outside Moscow, and Putin convened an emergency Cabinet session. The Kremlin said. Yeltsin still plans to travel to Bethlehem next month for Orthodox Christmas celebrations.

'The Yeltsin party of power has fallen." said Communist

leader Gennady Zyuganov, who came in second in 1996 presidential elections. He called on his supporters to rally for a Communist presidential candidate.

Under the Russian constitution. presidential elections must be held within 90 days of the president s resignation. The ITAR-Tass news agency said the Kresidential elections would be eld around March 27.

Putin, with effective control of the government, including state media, has a huge advantage in the race to succeed Yeltsin.

Yeltsin, who has been hit by corruption allegations In recent months, reportedly had been looking for assurances for the safety of himself and his family when he steps down. Putin as president would be able to give Yeltsin the immunity he reportedly wants.

Plagued for years by heart and other health problems. Yeltsin was often ill and out of sight during his second term. He spent many weeks sidelined at his country residence and was largely seen as a caretaker president.

But Yeltsin continued to dominate Russian politics, despite his ill health. He easily defeated a Communist-led effort in May to impeach him and had dismissed four prime ministers in the last two years.