“Growth is expected to be led by a modest recovery of investment from a low base following large declines for three consecutive years,” it said.

However, it added: “Further deterioration in trade relations with Russia could result in prolonged recession as reorientation of Ukrainian exports towards other markets will require more time and investments.”

Ukraine’s $17.5bn (£11.4bn) lifeline from the IMF was approved last month, providing swift assistance for the country’s struggling finances as part of a larger four-year bailout.

The World Bank urged policymakers to act quickly to reduce inefficient subsidies on energy, agriculture, and coal, as well as implement reforms to the pension system.

Ukraine’s conflict with Russia, which began after its annexation of Crimea, has also hurt the Russian economy.

Dmitry Medvedev, it’s prime minister, admitted last week that the double shock of the collapse in oil prices and Western sanctions following the annexation last year presented an unprecedented challenge for the economy.

He said the economy had contracted by 2pc in the first quarter alone compared with the same quarter in 2014, and added that the sanctions could cost Russia €75bn this year – or around 4.8pc of gross domestic product (GDP).