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The UN Security Council is calling on the participants in Libyan peace talks to agree on the formation of a new unity government as soon as possible, threatening to impose sanctions against those who hamper the reconciliation efforts, Sputnik reported.

"Expressing deep concern about the continuing violence in Libya, the members of the Security Council reaffirmed that there can be no military solution to the crisis in Libya and called on all parties to cease hostilities to create a peaceful and conducive environment for an inclusive dialogue," the Security Council said in a statement issued on Monday.

Earlier in the day, Libya peace talks were held in Algeria. They will be followed by another round of talks in Morocco on April 15.

"The members of the Security Council strongly urged all Libyan stakeholders participating in the talks to agree on arrangements on the formation of a National Unity Government to end Libya's political, security and institutional crisis," the Monday statement said.

Members of the Security Council stressed that the Sanctions Committee is prepared to impose restrictions on those who "obstruct or undermine" a political transition in Libya and threaten the country's stability or security.

They also "reaffirmed their strong commitment to the sovereignty, independence, territorial integrity and national unity of Libya."

Libya has been engulfed in violence since the 2011 overthrow of the country's long-standing leader Muammar Gaddafi. There are currently two rival governments in the county.

The internationally recognized government based in Tobruk (the Council of Deputies) is rivaled by the self-proclaimed General National Congress, based in the capital city of Tripoli and dominated by the Muslim Berotherhood.

Libya is also facing the threat of rebel groups, such as Islamic State-affiliated militants.