Yandex Mail UTF7 Folders Encoding

Creating, deleting or moving of messages between forlders in Yandex Mail account results in Error Messages saying that destination folder does not exist with suggestion either to create it immediately or to forget about it. Yandex Support confirmed that they are using UTF7 encoding in folder names. Can you fix it?

Yandex support confirmed that they use UTF7 encoding in forlder names. Any idea how to resolve it?