Knife restoration

I would start with hot water and mild soap on the blade. Dry it thoroughly. Then mineral oil and a rag. Don’t use anything abrasive.

Do you have the sheath?
 
Just some drops of Camelia oil (tea seed oil). It's non agressive and very preservative. Don't scrub, rub off anything... until you know. I'm not a dagger/specialist but this one looks intriguing : hollow grind and Kabar style leather stacked handle. It shows the signs of an intense past. And last, but not least, it looks damn good.
Can you buy this oil at supermarkets
 
Can you buy this oil at supermarkets
If not available locally, it can be purchased on the internet. But, seriously, linen oil is a good to go, too.
Bottom line is... Keep it pristine.
 
If it’s loose I’d try to gently lift it off. It’s it’s firmly attached I’d leave it.

When I said no abrasives, that includes the rust in the rag you are using. Keep using a clean part of the rag.

You want to be very gentle, remove active rust and grime. Leave the patina.
 
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