diff --git a/internal/orchestrator/repo/repo.go b/internal/orchestrator/repo/repo.go
index b78e311a..e367cd52 100644
--- a/internal/orchestrator/repo/repo.go
+++ b/internal/orchestrator/repo/repo.go
@@ -51,7 +51,7 @@ func NewRepoOrchestrator(config *v1.Config, repoConfig *v1.Repo, resticPath stri
 	}
 
 	for _, f := range repoConfig.GetFlags() {
-		args, err := shlex.Split(f)
+		args, err := shlex.Split(ExpandEnv(f))
 		if err != nil {
 			return nil, fmt.Errorf("parse flag %q for repo %q: %w", f, repoConfig.Id, err)
 		}