Here is what I did.

create table data(data varchar(max));

INSERT INTO data(data)

SELECT * FROM

OPENROWSET(BULK 'D:\docs\DB\oracle.txt', SINGLE_BLOB) as f ;

declare @cmd varchar(512);

SET @cmd =

'bcp "SELECT data FROM woof.dbo.data" queryout c:\1.txt -T -c -C 1251';

EXEC master..xp_cmdshell @cmd;

Even the Russian characters were preserved perfectly whithin the text file and no jarbled ones.