TeamCity error after addind SVN subrepo to Mercurial

I added SVN project as a subrepository to my Mercurial project (following this https://mercurial.selenic.com/wiki/Subrepository instructions) and now TeamCity cannot build Mercurial project. I get the following error:

[Updating sources] Failed to build patch for build #???, VCS root: "mercurial: https://myrepo" {instance id=41, parent internal id=22, parent id=mercurial_repo_id, description: "mercurial: https://myrepo"}, due to error: Cannot build patch: ClientAbortException:  java.io.IOException

[Updating sources] Problem while loading patch data stream: Failed to obtain stream from server. Server status: 504 (Gateway Time-out)

Problem while loading patch data stream: Failed to obtain stream from server. Server status: 504 (Gateway Time-out)

When I clone the repo locally, all goes fine, but TeamCity doesn't see the subrepo and there is no subrepo in changes graph.
I tried to add different build steps, but it didn't help. I also tried to change VCS checkout mode in TeamCity to agent-checkout, but there is another error due to self-signed sertificates:

Failed to perform checkout on agent: 'hg --config ui.interactive=False clone -U --uncompressed https://...' command failed.
stderr: abort: could not find web.cacerts: /etc/ssl/ca-bundle.pem

However, the checkout mode shouldn't be the cause of errors since as far as I know such issue has been resolved in 8 version of TeamCity (we use 8.0.6).
How should I configure TeamCity to work with SVN subrepo inside Mercurial repo?

Thanks.

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