The Haaretz daily said on its website that crime boss Ya'akov Alperon was killed in the blast, which was set off by remote control, and that two bystanders suffered minor injuries.
A local police spokesman confirmed the attack on Namir Road to RIA Novosti, but not the victim's identity. He denied an earlier report that a bus had exploded.
Haaretz said one of the casualties was a 13-year-old boy waiting for a bus, and that the other was a passenger in a car behind Alperon's vehicle.
The bomb is believed to have been set off by criminal rivals of the mafia boss.
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The main event of the third day of the 11th meeting of the Valdai International Discussion Club in Sochi was the closing session with President Vladimir Putin. The atmosphere was calm and open, despite the current political tensions and the Russia-West confrontation. The Russian president said that it corresponded to the spirit of the Valdai Club.