Libyan leader Moamar Kadhafi has launched a mediation effort to try to improve relations between Russia and Ukraine following a landmark visit to the region, a Libyan source said on Saturday, AFP reported.

"Libya is working to ease tensions between the two countries," the source said on condition of anonymity.

Kadhafi had said during a press conference in Kyiv on Thursday that he would do his best to help repair the strained relations, which have deteriorated over Ukraine`s NATO membership bid and its refusal to renew a lease for a Russian naval base in the Crimean port of Sevastopol.

The two countries are also at odds over the recent conflict between Russia and Georgia over South Ossetia.

"What is dangerous is that external forces could profit from this situation which is not in the interest of Russia, Ukraine or Georgia," Kadhafi said as he wrapped up a tour of former Soviet states.