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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Ukraine has not preserved its 1991 borders. The signing of the Geneva memorandum on April 17 reaffirmed the willingness of Russia, the United States and EU countries to reach a compromise. While the sides continue to trade tough talk and symbolic sanctions, the Kremlin and the White House are also holding a parallel dialogue on the coordinated geopolitical revision of Eastern Europe.