Energy transition to be supply shock, have strong and long-term pro-inflationary nature - Nabiullina

MOSCOW. Jan 14 (Interfax) - The energy transition is a strong and long-term structural pro-inflationary factor, Russian Central Bank Governor Elvira Nabiullina said at the Gaidar Forum.

"We must not forget that the strong, long-term structural pro-inflationary factor that is called the energy transition; the environmental, social and governance (ESG) transition, has already begun," Nabiullina said at the forum.

The factor will be pro-inflationary, as environmental technologies and investments in traditional energy will be more expensive, Nabiullina explained.

"Essentially, the ESG factor is a lasting supply shock that is similar to what probably happened with oil prices in the 1970s," Nabiullina said.