diff --git a/Makefile b/Makefile
index 5cbffdb..9162516 100644
--- a/Makefile
+++ b/Makefile
@@ -25,11 +25,9 @@ rpms: rpms-vm
 rpms-vm:
 	rpmbuild --define "_rpmdir $(RPMS_DIR)" -bb rpm_spec/core-vm.spec
 	rpmbuild --define "_rpmdir $(RPMS_DIR)" -bb rpm_spec/core-vm-doc.spec
-	rpmbuild --define "_rpmdir $(RPMS_DIR)" -bb rpm_spec/core-vm-kernel-placeholder.spec
 	rpm --addsign \
 		$(RPMS_DIR)/x86_64/qubes-core-vm-*$(VERSION)*.rpm \
-		$(RPMS_DIR)/x86_64/qubes-core-vm-doc-*$(VERSION)*.rpm \
-		$(RPMS_DIR)/x86_64/qubes-core-vm-kernel-placeholder-*.rpm
+		$(RPMS_DIR)/x86_64/qubes-core-vm-doc-*$(VERSION)*.rpm
 
 rpms-dom0:
 	@true
diff --git a/Makefile.builder b/Makefile.builder
index 5766587..9324e0d 100644
--- a/Makefile.builder
+++ b/Makefile.builder
@@ -1,7 +1,6 @@
 ifeq ($(PACKAGE_SET),vm)
   RPM_SPEC_FILES := rpm_spec/core-vm.spec \
-  rpm_spec/core-vm-doc.spec \
-  rpm_spec/core-vm-kernel-placeholder.spec
+  rpm_spec/core-vm-doc.spec
 
   ifneq ($(filter $(DISTRIBUTION), debian qubuntu),)
     DEBIAN_BUILD_DIRS := debian
diff --git a/archlinux/PKGBUILD.install b/archlinux/PKGBUILD.install
index 3ca2a77..75e2fe0 100644
--- a/archlinux/PKGBUILD.install
+++ b/archlinux/PKGBUILD.install
@@ -94,9 +94,6 @@ update_qubesconfig() {
 	#  echo 'include=file:///etc/yum.conf.d/qubes-proxy.conf' >> /etc/yum.conf
 	#fi
 
-	# Revert 'Prevent unnecessary updates in VMs':
-	#sed -i -e '/^exclude = kernel/d' /etc/yum.conf
-
 	# Location of files which contains list of protected files
 	mkdir -p /etc/qubes/protected-files.d
 	PROTECTED_FILE_LIST='/etc/qubes/protected-files.d'
diff --git a/debian/control b/debian/control
index 44741c5..c971220 100644
--- a/debian/control
+++ b/debian/control
@@ -63,6 +63,3 @@ Conflicts: ${diverted-files}, qubes-core-agent-linux, firewalld, qubes-core-vm-s
 Description: Qubes core agent
  This package includes various daemons necessary for qubes domU support,
  such as qrexec.
-
-# Unresolved depends that exist in rpm_spec
-#qubes-core-vm-kernel-placeholder, qubes-core-vm,
diff --git a/rpm_spec/core-vm-kernel-placeholder.spec b/rpm_spec/core-vm-kernel-placeholder.spec
deleted file mode 100644
index bc8e0f6..0000000
--- a/rpm_spec/core-vm-kernel-placeholder.spec
+++ /dev/null
@@ -1,36 +0,0 @@
-# We don't install kernel pkg in VM, but some other pkgs depends on it.
-# Done as separate subpackage because yum allows multiple versions of kernel
-# pkg installed simultaneusly - and of course we don't want multiple versions
-# of qubes-core-vm
-Name:       qubes-core-vm-kernel-placeholder
-Summary:    Placeholder for kernel package as it is managed by Dom0
-Version:	1.0
-Release:	3%{dist}
-Vendor:		Invisible Things Lab
-License:	GPL
-Group:		Qubes
-URL:		http://www.qubes-os.org
-#  template released with 1.0-rc1 have kernel-debug installed by mistake. This
-#  line is required to smooth upgrade.
-Obsoletes:  kernel-debug
-#  this driver require exact kernel-drm-nouveau version; as isn't needed in VM,
-#  just remove it
-Obsoletes:  xorg-x11-drv-nouveau
-Provides:   xorg-x11-drv-nouveau
-#  choose the oldest Qubes-supported VM kernel
-Provides:   kernel = 3.7.4
-Provides:   kernel-modules-extra
-# for xl2tpd
-Provides: kmod(l2tp_ppp.ko)
-
-%description
-Placeholder for kernel package as it is managed by Dom0.
-
-%install
-
-mkdir -p $RPM_BUILD_ROOT/lib/modules
-
-%files
-%if %{fedora} > 18
-%dir /lib/modules
-%endif
diff --git a/rpm_spec/core-vm.spec b/rpm_spec/core-vm.spec
index 6490935..5e269b3 100644
--- a/rpm_spec/core-vm.spec
+++ b/rpm_spec/core-vm.spec
@@ -47,7 +47,6 @@ Requires:   tinyproxy
 Requires:   ntpdate
 Requires:   net-tools
 Requires:   nautilus-python
-Requires:   qubes-core-vm-kernel-placeholder
 Requires:   qubes-utils >= 3.1.2
 Requires:   initscripts
 # for qubes-desktop-run
@@ -74,6 +73,7 @@ Obsoletes:  qubes-core-commonvm
 Obsoletes:  qubes-core-appvm
 Obsoletes:  qubes-core-netvm
 Obsoletes:  qubes-core-proxyvm
+Obsoletes:  qubes-core-vm-kernel-placeholder <= 1.0
 Obsoletes:  qubes-upgrade-vm < 3.1
 BuildRequires: xen-devel
 BuildRequires: libX11-devel
@@ -160,9 +160,6 @@ fi
 # And actually setup the proxy usage in package managers
 /usr/lib/qubes/update-proxy-configs
 
-# Revert 'Prevent unnecessary updates in VMs':
-sed -i -e '/^exclude = kernel/d' /etc/yum.conf
-
 # Location of files which contains list of protected files
 mkdir -p /etc/qubes/protected-files.d
 PROTECTED_FILE_LIST='/etc/qubes/protected-files.d'