diff --git a/git-remote-hg b/git-remote-hg
index 4a44ee2..79b8101 100755
--- a/git-remote-hg
+++ b/git-remote-hg
@@ -423,6 +423,8 @@ def get_repo(url, alias):
 
     extensions.loadall(myui)
 
+    url = url.encode()
+
     if hg.islocal(url) and not os.environ.get('GIT_REMOTE_HG_TEST_REMOTE'):
         repo = hg.repository(myui, url)
         if not os.path.exists(dirname):
@@ -444,7 +446,7 @@ def get_repo(url, alias):
 
         # setup shared repo (if not there)
         try:
-            hg.peer(myui, {}, shared_path, create=True)
+            hg.peer(myui, {}, shared_path.encode(), create=True)
         except error.RepoError:
             pass
 
@@ -453,12 +455,12 @@ def get_repo(url, alias):
 
         local_path = os.path.join(dirname, 'clone')
         if not os.path.exists(local_path):
-            hg.share(myui, shared_path, local_path, update=False)
+            hg.share(myui, shared_path.encode(), local_path.encode(), update=False)
         else:
             # make sure the shared path is always up-to-date
-            util.writefile(os.path.join(local_path, '.hg', 'sharedpath'), hg_path)
+            util.writefile(os.path.join(local_path, '.hg', 'sharedpath').encode(), hg_path.encode())
 
-        repo = hg.repository(myui, local_path)
+        repo = hg.repository(myui, local_path.encode())
         try:
             peer = hg.peer(repo.ui, {}, url)
         except: