Pro-Russian insurgency leaders quickly accused a "terrorist group" of trying to topple the symbol of communist power that has loomed large over the main square of the eastern industrial city of Donetsk for nearly 50 years.
A small part of the monument's foundation was damaged in the explosion while the bronze statute itself was left unscathed.
"According to our information, the explosives were planted by a terrorist group that had already committed similar crimes in Donetsk," rebel military spokesman Eduard Basurin told AFP.
But the Donetsk insurgents' self-proclaimed interior ministry said it was treating the incident as a "terrorist act" and conducting a probe.
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The blast follows a series of similar attempts to remove statues of Lenin -- of which many are planted in cities of the ex-Soviet Union -- from the war-shattered regions of the separatist provinces of Lugansk and Donetsk.
Pro-Moscow forces have been waging a 21-month war against government troops that has claimed more than 9,000 lives.
Kiev has banned all Soviet symbols as well as the Communist Party in a bid to reaffirm its commitment to joining the European Union and possibly even the NATO military bloc.
Russia, whose leadership consistently denies any involvement in the pro-Moscow revolt, accuses its western neighbour of violating international law by banning the Communist Party.