The blast caused by an explosive device went off at 5.00 a.m. Moscow time (2.00 a.m. GMT) in Oryol's Sovetsky district killing one man. The explosion shattered windows in nearby shops. No other casualties were reported.
"Three suspects, including the suspected organizer of the blast have been arrested," Marina Kostikova said adding that the suspects at the time of the arrest were carrying firearms, drugs and explosive parts.
The dead man was identified as an Oryol resident working for the alleged planner of the explosion. Investigators said the blast could be linked to a turf war between local gangs.
A criminal case has been launched.
In 2004 the city of Voronezh, located in the same part of the country, was hit by three separate blasts at bus stations. One 26-year-old woman was killed and ten other people were injured.