I know it's old, but I have very similar problem and i think it's for the same issue.
On FTP connection (Krusader -> Tools -> New Net connection) when I try to enter folder with special characters (like: "sÑ te¥") i get message "Error: Could not enter folder .../sÑ te¥." and Krusader can't do anything with that.
In file manager like Nemo i can enter this folder (also by FTP) without any problems and work on files.
I know it's old, but I have very similar problem and i think it's for the same issue.
On FTP connection (Krusader -> Tools -> New Net connection) when I try to enter folder with special characters (like: "sÑ te¥") i get message "Error: Could not enter folder .../sÑ te¥." and Krusader can't do anything with that.
In file manager like Nemo i can enter this folder (also by FTP) without any problems and work on files.