This paper examines the impact of the COVID-19 pandemic on firm performance in different parts of Russia. We construct regressions explaining the revenue of small and medium-sized Russian firms, taking into account their individual, spatial, and regional characteristics. The strictness of the quarantine during the pandemic did not affect firm performance, while agglomeration effects and the situation in neighbouring regions became less influential on business performance during the COVID-19 pandemic. Fast-growing regions also stimulate the development of surrounding areas, while the impact of agglomeration effects on firms is weaker in Eastern Russia.
