PARIS (Reuters – Global wine trade could be affected by supply chain disruptions or the conflict in Ukraine. After rebounding last year, it reached a new record as many countries lifted coronavirus-related restrictions. OIV International Wine Body said Wednesday.

The International Organisation of Vine and Wine (OIV), reported that the world wine trade increased 16% to $34.3 billion dollars ($36.15 trillion) and 4% to 111.6 millions hectolitress (mhl) as a result of total exports. Both indicators have reached all-time highs.

One hectolitre equals 133 standard bottles.

The overall recovery of wine markets was evident in 2021. “The real problem is how this sector will deal with the situation in 2022,” Pau Rocca, OIV director general said at a press conference.

He said that Russia’s invasion in Ukraine, which was a result of the pandemic, could increase inflation and lower consumer demand.

He said that Russia could be affected by Western sanctions on Moscow. Russia spent 949million euros last year to import wine mainly from Spain, France, and Italy.

OIV reported that the growth in last year was driven by Spain’s top three wine exporters, Italy, France and just under half of global total exports.

France’s wine sector has reported record sales of wines for 2021.

According to OIV, imports from the United States were the most valuable destination for importers last year. They increased 21% to 6.2 million euros.

U.S. import volumes increased 13% to 13.9 MHL, surpassing Britain as world’s 2nd-largest Importer. However, UK imports contracted due to Brexit.

Germany remains the top importer in volume and continues to import stable quantities at 14.5 million mhl.

OIV reported that the global wine consumption increased by 1%. This is due to an increase in demand from China following a earlier boom.

The global production for 2021 was 260 million mhl. This is a decrease of 1% over the previous year, as the impact of weather in Western Europe on grape harvests was greater than the record southern hemisphere output.

It was still higher than the initial range of 247.1-253.5 MHL given by OIV November. However, it had been significantly revised up for Italian production.

($1 = 0.9488 euros)