diff --git a/usr/share/rear/conf/default.conf b/usr/share/rear/conf/default.conf
index cf68bce6d5..3efb630b71 100644
--- a/usr/share/rear/conf/default.conf
+++ b/usr/share/rear/conf/default.conf
@@ -626,8 +626,7 @@ BEXTRACT_DEVICE=
 ##
 # TODO
 # Copy Borg stuff 1:1
-# Investigate propper locales setup in ReaR recovery media
-COPY_AS_IS_BORG=( /usr/lib/locale/en_US.utf8 /usr/share/locale/en_US )
+COPY_AS_IS_BORG=( )
 # Binaries Borg needs to operate correctly
 PROGS_BORG=( borg locale )
 # Borg server name
@@ -641,7 +640,7 @@ BORG_REPO=
 BORG_ARCHIVE_PREFIX="rear"
 # Compression used by Borg
 # Syntax: <compression_type,level>
-# compression_type: lz4, zlib, lzma
+# compression_type: none, lz4, zlib, lzma
 # level: 0-9
 BORG_COMPRESSION="zlib,9"
 # TODO
diff --git a/usr/share/rear/prep/BORG/default/10_prep_borg.sh b/usr/share/rear/prep/BORG/default/10_prep_borg.sh
index 3819c9ac92..c781e1e492 100644
--- a/usr/share/rear/prep/BORG/default/10_prep_borg.sh
+++ b/usr/share/rear/prep/BORG/default/10_prep_borg.sh
@@ -3,5 +3,10 @@
 #
 # 10_prep_borg.sh
 
+# Create our own locales, used only for Borg restore
+mkdir -p $ROOTFS_DIR/usr/lib/locale
+localedef -f UTF-8 -i en_US $ROOTFS_DIR/usr/lib/locale/rear.UTF-8
+StopIfError "Could not create locales"
+
 COPY_AS_IS=( "${COPY_AS_IS[@]}" "${COPY_AS_IS_BORG[@]}" )
 PROGS=( "${PROGS[@]}" "${PROGS_BORG[@]}" )
diff --git a/usr/share/rear/restore/BORG/default/20_restore_borg.sh b/usr/share/rear/restore/BORG/default/20_restore_borg.sh
index 4ed8d90dc7..8c2d392225 100644
--- a/usr/share/rear/restore/BORG/default/20_restore_borg.sh
+++ b/usr/share/rear/restore/BORG/default/20_restore_borg.sh
@@ -8,15 +8,12 @@
 cd /mnt/local
 StopIfError "Could not change directory to /mnt/local"
 
-# This will need some more work...
-# It looks like Borg, needs working locales in order to behave correctly.
-# Locale handling is curently very primitive and tested only on SLES11 SP3.
-# Copy of locales is handled by COPY_AS_IS_BORG in default.conf.
-# For the future, we will need to find some way how to make locale setup in
-# ReaR recovery medium more bullet proof
-LC_ALL=en_US.UTF-8
-
 # Start actual restore
+# Scope of LC_ALL is only within run of `borg extract'.
+# This avoids Borg problems with restoring UTF-8 encoded files names in archive
+# and should not interfere with remaining stages of rear recover.
+# This is still not the ideal sollution, but best I can think of so far :-/
 LogPrint "Recovering from archive: $ARCHIVE"
+LC_ALL=rear.UTF-8 \
 borg extract --sparse $BORG_USERNAME@$BORG_HOST:$BORG_REPO::$ARCHIVE
 StopIfError "Could not successfully finish Borg restore"