Residents, including children at a nearby kindergarten, were evacuated, and the area where the explosion occurred was sealed off, police said. None of the children were hurt, police tweeted.
Police said 25 people had been injured. Local broadcaster MDR quoted police as saying one person had died and one other was missing. A photo tweeted by police showed a five-storey communist-era residential block with smoke rising from blackened windows on the second floor.
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