MOSCOW, August 3, 2008 (AFP) - Georgia's Moscow-backed breakaway region of South Ossetia is close to a 'large-scale' military conflict, Russia said on Sunday, adding that Georgian manoeuvres were undermining hopes of peace.

'The threat of large-scale military action between Georgia and South Ossetia is becoming ever more real,' Russia's foreign ministry said.

'Despite various declarations by the Georgian leadership on the need for urgent measures to reduce tension, in practice Tbilisi's actions undermine these declarations,' the ministry said in a statement.