diff --git a/repo/blob/sftp/sftp_storage.go b/repo/blob/sftp/sftp_storage.go
index 73f0d4729..200f8f8f5 100644
--- a/repo/blob/sftp/sftp_storage.go
+++ b/repo/blob/sftp/sftp_storage.go
@@ -86,12 +86,10 @@ func (s *sftpImpl) PutBlobInPath(ctx context.Context, dirPath, path string, data
 	tempFile := fmt.Sprintf("%s.tmp.%x", path, randSuffix)
 	f, err := s.createTempFileAndDir(tempFile)
 	if err != nil {
-		fmt.Printf("putblob-createtempfileanddir(%s)\n", err)
 		return errors.Wrap(err, "cannot create temporary file")
 	}
 
 	if _, err = f.Write(data); err != nil {
-		fmt.Printf("putblob-write(%s)\n", err)
 		return errors.Wrap(err, "can't write temporary file")
 	}
 
@@ -99,7 +97,7 @@ func (s *sftpImpl) PutBlobInPath(ctx context.Context, dirPath, path string, data
 		return errors.Wrap(err, "can't close temporary file")
 	}
 
-	err = s.cli.Rename(tempFile, path)
+	err = s.cli.PosixRename(tempFile, path)
 	if err != nil {
 		if removeErr := s.cli.Remove(tempFile); removeErr != nil {
 			fmt.Printf("warning: can't remove temp file: %v", removeErr)
@@ -259,7 +257,13 @@ func New(ctx context.Context, opts *Options) (blob.Storage, error) {
 	}
 
 	if _, err = c.Stat(opts.Path); err != nil {
-		return nil, errors.Wrapf(err, "path doesn't exist: %s", opts.Path)
+		if os.IsNotExist(err) {
+			if err = c.MkdirAll(opts.Path); err != nil {
+				return nil, errors.Wrap(err, "cannot create path")
+			}
+		} else {
+			return nil, errors.Wrapf(err, "path doesn't exist: %s", opts.Path)
+		}
 	}
 
 	r := &sftpStorage{
diff --git a/repo/blob/sftp/sftp_storage_test.go b/repo/blob/sftp/sftp_storage_test.go
index 6c2e230f6..ef92f29e4 100644
--- a/repo/blob/sftp/sftp_storage_test.go
+++ b/repo/blob/sftp/sftp_storage_test.go
@@ -20,8 +20,7 @@
 
 func TestSFTPStorageValid(t *testing.T) {
 	ctx := context.Background()
-	additionalPath := ""
-	st, err := createSFTPStorage(ctx, additionalPath, t)
+	st, err := createSFTPStorage(ctx, t)
 
 	if err != nil {
 		t.Fatalf("unable to connect to SSH: %v", err)
@@ -46,22 +45,6 @@ func TestSFTPStorageValid(t *testing.T) {
 	}
 }
 
-func TestSFTPStorageInvalid(t *testing.T) {
-	ctx := context.Background()
-	additionalPath := "-no-such-path"
-	st, err := createSFTPStorage(ctx, additionalPath, t)
-
-	if err != nil {
-		t.Fatalf("unable to connect to SSH: %v", err)
-	}
-
-	defer st.Close(ctx)
-
-	if err := st.PutBlob(ctx, t1, []byte{1}); err == nil {
-		t.Errorf("unexpected success when adding to non-existent path")
-	}
-}
-
 func assertNoError(t *testing.T, err error) {
 	t.Helper()
 	if err != nil {
@@ -77,7 +60,7 @@ func deleteBlobs(ctx context.Context, t *testing.T, st blob.Storage) {
 	}
 }
 
-func createSFTPStorage(ctx context.Context, additionalPath string, t *testing.T) (blob.Storage, error) {
+func createSFTPStorage(ctx context.Context, t *testing.T) (blob.Storage, error) {
 	host := os.Getenv("KOPIA_SFTP_TEST_HOST")
 	if host == "" {
 		t.Skip("KOPIA_SFTP_TEST_HOST not provided")
@@ -113,7 +96,7 @@ func createSFTPStorage(ctx context.Context, additionalPath string, t *testing.T)
 	}
 
 	return sftp.New(ctx, &sftp.Options{
-		Path:       path + additionalPath,
+		Path:       path,
 		Host:       host,
 		Username:   usr,
 		Port:       int(port),