TC Command Line does not detect 7zip executable

Good Day,

First, let me describe my situation.
Teamcity 8.1 installed on VM running under Windows Server 2012.
Needed to update a '.zip' archive through a 'Custom script' command line step in TC.
Installed 7Zip and added its executable path to the %PATH% variable.
As espected, when I start a Command Line Prompt and run 7zip commands in it
everything works, but when running the 'Custom script' step the Command line runner says:
"'7z' is not recognized as an internal or external command,operable program or batch file."

What am I missing?
Should the TC Command line runner have access to '7z'?

Thanks!