In January 1918, Yudovsky was appointed Chairman of the local Council of the People's Commissars and formed a government that included Bolsheviks, anarchists and members of the Socialist-Revolutionary Party. The government proclaimed Odessa a free city and pledged allegiance to the Bolshevik government in Petrograd. The following month, the government was liquidated by Mikhail Muravyov and merged with the regional Central Executive Committee Rumcherod.