diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/Visibilities.java b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/Visibilities.java
index 624743ac81c..09d878534e2 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/Visibilities.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/Visibilities.java
@@ -48,9 +48,6 @@ public class Visibilities {
                 if (parent == fromParent) {
                     return true;
                 }
-                if (fromParent instanceof NamespaceDescriptor) {
-                    break; //'private' package members are not visible for subpackages, so when we reach a package, we should stop
-                }
                 fromParent = fromParent.getContainingDeclaration();
             }
             return false;
@@ -77,7 +74,8 @@ public class Visibilities {
         protected boolean isVisible(@NotNull DeclarationDescriptorWithVisibility what, @NotNull DeclarationDescriptor from) {
             ModuleDescriptor parentModule = DescriptorUtils.getParentOfType(what, ModuleDescriptor.class, false);
             ModuleDescriptor fromModule = DescriptorUtils.getParentOfType(from, ModuleDescriptor.class, false);
-            return parentModule == fromModule;
+            assert parentModule != null && fromModule != null;
+            return parentModule.equals(fromModule);
         }
     };
 
diff --git a/compiler/testData/diagnostics/tests/scopes/visibility2.jet b/compiler/testData/diagnostics/tests/scopes/visibility2.jet
index 40afa0ee60c..83b063bce2b 100644
--- a/compiler/testData/diagnostics/tests/scopes/visibility2.jet
+++ b/compiler/testData/diagnostics/tests/scopes/visibility2.jet
@@ -13,7 +13,7 @@ private object PO {}
 
 //FILE:b.kt
 //+JDK
-package a.b
+package b
 
 import a.*