The decision of the Provisional Government on assuming of the offensive at the battle-front, its compromise agreement with the Central Rada, which demanded wide autonomy for Ukraine, deterioration of economic situation caused a new political crisis.
Ministers - Constitutional Democrats obeying the decision of their Central Committee on July 2 send in their resignation as a sign of protest against the agreement with Central Rada. Central Committee of Russian Social-Democratic Party of workers (Bolsheviks), taking advantage of the situation, proclaimed the slogan "All authority to Soviets!" and started preparation for mass action to force the Provisional Government to hand over the authority to Soviets. Demonstrations and meetings began in Petrograd on July 3. Bolsheviks called on the 1stmachine-gun regiment and other formations to rise in rebellion. 0,5 million people went into the street of Petrograd on July 4. A part of armed demonstrators rushed into the Tavrichesky palace and demanded of All-Russian Central Committee's members to take authority immediately.
There were armed conflicts between demonstrators and supporters of the Provisional Government. More than 700 persons died and were wounded during disorders. Under these conditions the party leadership of Bolsheviks took a contradictory position. The majority, seeing, that the parity of forces was not in favour of Bolsheviks, on July 3-4 acted as supporters of peaceful character of the demonstration. At the same time the other part of Bolsheviks, including members of the Military organization (I.T.Smilga, M.I.Latsis, V.I.Nevsky, N.I.Podvoysky etc.), relying on the mood of people, insisted on armed revolt. Only after sharp discussions in the evening of July 4 the majority of leaders, among them V.I.Lenin (later he recognized, that it was an attempt to seize power by peace), decided to stop demonstration.
After this the Provisional Government passed to the offensive. Bolsheviks leaders were accused of high treason. The order about V.I.Lenin's arrest was issued on July 7. Editorial office of "Pravda" newspaper was smashed up, and L.D.Trotsky, F.F.Raskolnikov, L.B.Kamenev and other heads of Bolsheviks were arrested. On July 8 Kerensky became the head of the Provisional Government. Under pressure of Constitutional Democrats on July 12 he restored the death penalty at the battle-front. Popular in Russia general L.G.Kornilov was appointed the Supreme Commander-in-Chief instead of general A.A.Brusilov on July 19. After long negotiations with representatives of some parties the second coalition government was formed on July 24, 1917