At least 103 people were killed and 130 others injured in an explosion caused by a pyrotechnics display in the Russian Urals city of Perm.

The blast, which occurred around 1:00am local time early on Saturday, sparked a fire which engulfed the Lame Horse club, where over 200 people were gathered to party. The venue was almost completely destroyed by the blaze.

Officials immediately ruled out the possibility that the accident was an act of terror, and bomb experts from the Federal Security Service (FSB) said they have found no traces of explosive devices at the club, according to reports.

 "The accident was due to a violation of instructions when launching fireworks," said Vladimir Markin, spokesman for the Russian Investigation Committee.

"We are not talking about a terrorist attack, we are talking about a failure to observe fire regulations," Itar-Tass news agency quoted a spokesman for the prosecutor-general's main investigative unit as saying.

 The latest reports from Russian News sources say that the death toll has climbed to 103, and over 130 have been injured with many of them in serious condition.

Markin also said that both the owner and the manager of the Lame Horse have been arrested, and four more suspects are being sought. 

Anatoly Zak and Svetlana Yefremova, have been charged with breaching fire safety rules, and face jail terms of up to seven years.

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