diff --git a/steam_helper/steam.cpp b/steam_helper/steam.cpp
index 79fa95d24c5..e97281b3f81 100644
--- a/steam_helper/steam.cpp
+++ b/steam_helper/steam.cpp
@@ -952,7 +952,9 @@ static BOOL should_use_shell_execute(const WCHAR *cmdline)

 static HANDLE run_process(BOOL *should_await)
 {
-    WCHAR *cmdline = GetCommandLineW();
+    typedef HRESULT (WINAPI *PathCchRemoveFileSpecFunc)(WCHAR *path, SIZE_T size);
+    PathCchRemoveFileSpecFunc pPathCchRemoveFileSpec;
+    WCHAR *cmdline = GetCommandLineW(), *current_directory = NULL;
     STARTUPINFOW si = { sizeof(si) };
     PROCESS_INFORMATION pi;
     DWORD flags = CREATE_UNICODE_ENVIRONMENT;
@@ -983,7 +985,7 @@ static HANDLE run_process(BOOL *should_await)
         WCHAR *scratchW;
         char *scratchA;
         WCHAR *start, *end, *dos, *remainder, *new_cmdline;
-        size_t argv0_len;
+        size_t argv0_len, length;
         int r;
         DWORD_PTR console;
         SHFILEINFOW sfi;
@@ -1054,11 +1056,17 @@ static HANDLE run_process(BOOL *should_await)
         lstrcatW(new_cmdline, dquoteW);
         lstrcatW(new_cmdline, remainder);

+        pPathCchRemoveFileSpec = (PathCchRemoveFileSpecFunc)GetProcAddress(LoadLibraryA("kernelbase.dll"), "PathCchRemoveFileSpec");
+        length = lstrlenW(dos) + 1;
+        current_directory = (WCHAR *)HeapAlloc(GetProcessHeap(), 0, length * sizeof(WCHAR));
+        lstrcpyW(current_directory, dos);
+        pPathCchRemoveFileSpec(current_directory, length);
+
         cmdline = new_cmdline;
     }

 run:
-    WINE_TRACE("Running command %s\n", wine_dbgstr_w(cmdline));
+    WINE_TRACE("Running command %s in %s\n", wine_dbgstr_w(cmdline), wine_dbgstr_w(current_directory));

     SetConsoleCtrlHandler( console_ctrl_handler, TRUE );

@@ -1077,7 +1085,7 @@ run:
     if (use_shell_execute)
     {
         static const WCHAR verb[] = { 'o', 'p', 'e', 'n', 0 };
-        ShellExecuteW(NULL, verb, cmdline, NULL, NULL, hide_window ? SW_HIDE : SW_SHOWNORMAL);
+        ShellExecuteW(NULL, verb, cmdline, NULL, current_directory, hide_window ? SW_HIDE : SW_SHOWNORMAL);

         return INVALID_HANDLE_VALUE;
     }
@@ -1089,7 +1097,7 @@ run:
             si.wShowWindow = SW_HIDE;
         }

-        if (!CreateProcessW(NULL, cmdline, NULL, NULL, FALSE, flags, NULL, NULL, &si, &pi))
+        if (!CreateProcessW(NULL, cmdline, NULL, NULL, FALSE, flags, NULL, current_directory, &si, &pi))
         {
             WINE_ERR("Failed to create process %s: %u\n", wine_dbgstr_w(cmdline), GetLastError());
             return INVALID_HANDLE_VALUE;
diff --git a/wine b/wine
--- a/wine
+++ b/wine
@@ -1 +1 @@
-Subproject commit df982e6865c2041ae994ee20ed2a2075ae7ddfb7
+Subproject commit df982e6865c2041ae994ee20ed2a2075ae7ddfb7-dirty