The issue impacts JDK 7 since b116 on Windows XP 32 bit.
If path to java home directory contains some Russian characters in directory names - e.g. "C:\ArkS\������-116\", java.exe fails to start with the following diagnostics:
C:\ArkS\������-116\bin>java -version
Error occurred during initialization of VM
java.lang.UnsatisfiedLinkError: no zip in java.library.path
at java.lang.ClassLoader.loadLibrary(ClassLoader.java:1857)
at java.lang.Runtime.loadLibrary0(Runtime.java:840)
at java.lang.System.loadLibrary(System.java:1084)
at java.lang.System.initializeSystemClass(System.java:1129)
JDK 7 b115 and earlier run successfully within the same conditions.