Russian news agencies say a blast in an upscale residential block in Moscow has killed one person and wounded four others.

A bomb tore through the lobby of a luxury apartment block in Moscow on Monday, killing at least one person and injuring four others, Russian state media reported, citing emergency services.

High-end real estate in the city is seeing a surge in demand as Russians invest back home and turn away from overseas deals because of sanctions.

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One person was killed and four were wounded, according to Russian news agencies. Armed security were outside the scene as authorities said a criminal case has been launched.

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Law enforcement authorities said the suspected arms trafficker is believed to be part of a criminal group that has smuggled weapons from the U.S. to Russia.