Index: subversion/libsvn_client/blame.c
===================================================================
--- subversion/libsvn_client/blame.c	(revision 7978)
+++ subversion/libsvn_client/blame.c	(working copy)
@@ -378,7 +378,9 @@
 
   SVN_ERR (ra_lib->get_repos_root (session, &reposURL, pool));
 
-  lmb.path = url + strlen (reposURL);
+  /* Convert path from URI to UTF-8 before placing it in the baton */
+  lmb.path = svn_path_uri_decode (url + strlen (reposURL), pool);
+
   lmb.cancel_func = ctx->cancel_func;
   lmb.cancel_baton = ctx->cancel_baton;
   lmb.eldest = NULL;