Usually the problem is not the fact that you have this character present but rather that the xml document has no or the wrong encoding stated on top. eg. it states encoding="UTF-8"
while in reality it is cp-1251
Then your XML states the wrong encoding, UTF-8 != AL32UTF-8. You should update the XML accordingly.
Here someone with the same issue.
You are correct, my XML does indeed state "UTF-8". How do I change the encoding? Just renaming it to "CP-1251" or "cp-1251" causes a "Invalid encoding name" error.
Would be great, however the modeler tells me that this is an invalid encoding name.