The Russian-Ukraine war can hit the global supply chains that are already constrained due to the pandemic and the worst impact will be on ongoing chip shortage because the warring nations brutally control supplies of key raw materials that go into making semiconductors, warns a report. Since Russia controls as much as 44 per cent of global palladium suppplies, Ukraine produces a significant 70 per cent of the global supply of neon -- the two key raw materials that go into making chips. The markets can expect the global chip shortage, that began with the pandemic, to worsen if the military conflict lingers on, says a Moody's Analytics report on Friday. Palladium and neon are the two resources that are key to the production of semiconductor chips and these chips are necessary in almost all other industries like automobiles, mobile phones and consumer electronics and many others. The Russian invasion of Ukraine will also lead to higher oil (oil is already at nine-year high and hovering around USD 111 a barrel) and natural gas prices worldwide, even if additional supply outside of Russia comes on line, impacting every oil importing countries, the report notes.