According to the World Bank, Ukraine's GDP would decline by nearly half this year as a result of the war.
Russia's invasion is expected to do greater economic harm in eastern Europe and portions of Asia than the coronavirus outbreak, according to the institute.
According to the World Bank, Ukraine's war has closed half of the country's enterprises and reduced exports.
The bank's vice-president, Anna Bjerde, stated that Ukraine need "urgent major financial help."
The bank has already given about $1 billion to Ukraine and has pledged another $2 billion in the coming months.
According to the report, the suspension of Black Sea shipping from Ukraine has cut off 90 percent of Ukraine's grain exports and half of its overall exports.
Ukraine is the largest country in the world. According to the World Bank, the war has rendered economic activity in huge portions of the nation difficult, interrupting agricultural and harvesting activities.
"The scale of the humanitarian disaster wreaked by the conflict is mind-boggling. The Russian invasion has dealt a major hit to Ukraine's economy and caused massive infrastructural damage "Ms. Bjerde said.
The bank stated that the 45.1 percent shrinkage projection did not account for the impact of physical infrastructure destruction, but that this would significantly impede future economic growth.
While the war will wreak the most havoc on Ukraine's economy, the World Bank claims that sanctions imposed by Western nations have already sent Russia's economy into a deep recession.
Sanctions have included severing links with Russian banks and targeting Russian officials and billionaires, as well as prohibiting the import of luxury items and aircraft.
As a result of the sanctions, the bank predicted that Russia's GDP will fall by 11.2 percent in 2022. However, although the United States has prohibited all Russian oil and gas imports, the European Union, which buys a quarter of its oil and 40% of its gas from Russia, has refrained.
Every day, EU members pay Moscow up to €800 million (£674 million; $884 million) for energy, accounting for around 40% of the Kremlin's revenue.
The EU has suggested a strategy to wean Europe from Russian fossil resources by 2030.
Belarus, the Kyrgyz Republic, Moldova, and Tajikistan, in addition to Russia and Ukraine, are expected to enter recession this year, according to the World Bank.
It stated that the conflict had caused growth predictions to be reduced in all economies, with weaker-than-expected growth in the euro area.
"The Ukraine war and the epidemic have once again demonstrated how crises can devastate economies and set back years of per capita income and development achievements," Asli Demirgüç-Kunt, World Bank head economist for Europe and Central Asia, said.
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