The attack is said to have taken place in Kosgantynivka in Donetsk Oblast, which is still controlled by Ukraine.
Images shared on social media show exploded store buildings and a large cloud of black smoke.
The head of the local Ukrainian military administration, Serhiy Gorbunov, told the Ukrainian Sospilny TV channel that there is talk of a Russian attack.
The head of the regional administration, Vadim Vilashkin, wrote on Telegram that four people have been killed so far and at least 24 wounded as a result of the attack.
According to him, a supermarket and a post office were bombed, and people are said to be trapped under the rubble.
– Rescue operation is underway and we will do our best to save lives.
They are working to get an overview of the scope, Velashkin adds.
In 2020, just under 70,000 people lived in the city, which is located about 30 kilometers southwest of Bakhmut.
According to VG's view, battles were fought for control of areas east of the city, which Ukraine partially regained.
Kostjantynivka also came under a major attack in September. Seventeen were killed and 32 wounded, in what was described as one of the worst attacks since spring 2023.
“Organizer. Social media geek. General communicator. Bacon scholar. Proud pop culture trailblazer.”