Why floating ips do not work if the network node is an RHEV guest?

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Issue

I am using an RHEV guest as my network node and Openstack controller. Floating ips do not work and communication to and from vm using floating ips fails completely. How can I resolve this?

Environment

Red Hat Enterprise Linux Openstack Platform
Network node running as a guest in Red Hat Enterprise Virtualization v3.2 and above

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