Blender builds but fails on start with Py_Initialize error

Coding Beginning Blender Code and Development
1

iMac:Debug igor$ blender
Read new prefs: /Users/igor/Library/Application Support/Blender/2.73/config/userpref.blend
found bundled python: /Users/igor/blender-build/build_darwin/bin/Debug/blender.app/Contents/MacOS/…/Resources/2.73/python
Fatal Python error: Py_Initialize: unable to load the file system codec
ImportError: No module named ‘encodings’
Abort trap: 6

What I believe is happening is that Blenders embedded python (3.4) is using system default python shared lib (2.7) and failing. The same build environment worked fine prior to update to Yosemite.

If someone had any pointers how to resolve this, please share.

PS. Pre-built Blender works fine.

2

Ok so building the install target for some reason doesn’t copy all the modules needed for python to function to python/lib/python3.4/ which worked fine before (2.71-2.72) on OSX. manually copying the aforementioned folder from buildbot releases resolves the error. I would still like to skip that step and have working build environment so the question still stands.