No one is reported to have been injured, but the police have launched a major operation in the area overnight, VG reports.
The explosion occurred at the consular entrance to the embassy, and the damage to the building is described as "minor".
"I was sleeping when I was woken by the explosion. It was very powerful. We also saw thick smoke coming from the embassy," a person who lives nearby tells VG.
The alarm came around 1 a.m. Sunday. There are no reports of any arrests, and it is unclear what exploded.
"We have an idea of what caused it, but we don't want to reveal it right now," Michael Dellemyr with the police told the newspaper.
