Russia\u2019s invasion of Ukraine continues to have a devastating economic and humanitarian impact. In addition to the continuing combat in Eastern and Southern parts of Ukraine, air raids on Kyiv and other population centers have been escalating since early May; the recent destruction of the Kakhovka dam has added to the challenges. The war is having a severe impact on human and physical capital, with loss of life, drop in living standards and rise in poverty, as well as infrastructure damages. Despite the resilience of the Ukrainian people and the authorities\u2019 skillful policymaking in maintaining macroeconomic and financial stability, continuous external support is critical to help restore medium-term external viability, prepare the country for post-war recovery and reconstruction, and facilitate Ukraine\u2019s path to EU accession.<\/p>\n\n\n\n