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Police were searching for a suspected bomber on Tuesday after three people were wounded by an explosion in the wealthy principality of Monaco which French and Ukrainian media said was an attack on a Ukrainian-born oligarch.

A manhunt was underway in Monaco and neighbouring France after the explosive device went off on Monday evening in Monaco, which is known for its casino and luxury yachts, its tight security and the luxury lifestyle of its super-rich residents.

The suspect was believed to have fled to France, Christophe Mirmand, minister of state of Monaco, told BFM TV.

The principality is surrounded by the sea on one side and France on the other, and there are no border checks between the two countries. Italy is also close.