The accidental grenade blast occurred on Wednesday during a regiment-level tactical exercise with live firing at the Zavitinsky training center in the Far Eastern military district.
A preliminary investigation indicates that a crewmember of a BMP-1 infantry fighting vehicle inadvertently fired a grenade at a command post.
"The suspect, a 23-year-old contract soldier, is facing at least five years in prison if convicted," the source said.
The wounded, including five officers, are being treated at a regional military hospital.
The live firing exercise started on June 24 and involved 1,500 contract soldiers, 300 vehicles and aircraft. It was supposed to last until June 30, but was immediately suspended after the incident.
A total of 442 servicemen died in accidents and other non-combat incidents in the Russian Armed Forces in 2007. Twenty-three soldiers died due to negligence.
No statistics on the number of non-combat fatalities since the beginning of 2008 have been provided by the Defense Ministry yet.