The witnesses claim they saw Dmitry Ponomarenko, 30, leave his flat covered in blood and carrying the head of his 53-year-old father Igor Ponomarenko.
As he watched in horror, one neighbour said the n*ked man calmly sat down on a bench in the town of Odessa, southern Ukraine, and lit a cigarette.
'Covered with blood and wrapped in guts man, holding a severed head, came out of the entrance, sat down on a bench and lit a cigarette', a resident of the apartment block said on Wednesday.
Horrified witnesses called the emergency services, with Police racing to the scene
Once there, officers detained Ponomarenko junior who was found wandering around and hitting parked cars with the head, according to onlookers.
A picture shows him with intestines wrapped around his neck during his arrest.
Officers found two dead male bodies in the man's apartment.
The beheaded corpse of Igor Ponomarenko was lying on a bed, while another body that belonged to the family's friend Aleksandr Demchenko, 32, was sliced open and gutted.
When asked by cops why he killed the victims, Ponomarenko said it was because 'he had to' and that 'he is a god who is not worshipped', witnesses said.
A police spokesman said to local media: 'We received calls from shocked people reporting a man walking in the neighbourhood with a severed head in his hand.'
Law enforcement opened a criminal case for double murder against Ponomarenko, who was placed into custody. He faces up to 15 years in prison if found guilty.
During police interrogations, Ponomarenko said that 'he is a god' and that he 'sacrificed the victims to himself'.
The suspect worked in the Duke Hotel from where he had been fired a day before the incident for being under the influence of drugs and inappropriate behavior, a source said. The motives of the crime are being investigated.
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