diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/cfg/JetFlowInformationProvider.java b/compiler/frontend/src/org/jetbrains/jet/lang/cfg/JetFlowInformationProvider.java
index 68da00a20d3..453540602bf 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/cfg/JetFlowInformationProvider.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/cfg/JetFlowInformationProvider.java
@@ -188,7 +188,7 @@ public class JetFlowInformationProvider {
 ////////////////////////////////////////////////////////////////////////////////
 //  Uninitialized variables analysis
 
-    public void markUninitializedVariables(final boolean processLocalDeclaration) {
+    public void markUninitializedVariables() {
         final Collection<VariableDescriptor> varWithUninitializedErrorGenerated = Sets.newHashSet();
         final Collection<VariableDescriptor> varWithValReassignErrorGenerated = Sets.newHashSet();
         final boolean processClassOrObject = subroutine instanceof JetClassOrObject;
@@ -218,7 +218,7 @@ public class JetFlowInformationProvider {
                 JetElement element = ((WriteValueInstruction) instruction).getlValue();
                 boolean error = checkBackingField(ctxt, element);
                 if (!(element instanceof JetExpression)) return;
-                if (!error && !processLocalDeclaration) { // error has been generated before, while processing outer function of this local declaration
+                if (!error) {
                     error = checkValReassignment(ctxt, (JetExpression) element, varWithValReassignErrorGenerated);
                 }
                 if (!error && processClassOrObject) {
@@ -229,8 +229,11 @@ public class JetFlowInformationProvider {
                 }
             }
         });
+    }
 
+    public void recordInitializedVariables() {
         Pseudocode pseudocode = pseudocodeVariablesData.getPseudocode();
+        Map<Instruction, Edges<Map<VariableDescriptor,VariableInitState>>> initializers = pseudocodeVariablesData.getVariableInitializers();
         recordInitializedVariables(pseudocode, initializers);
         for (LocalDeclarationInstruction instruction : pseudocode.getLocalDeclarations()) {
             recordInitializedVariables(instruction.getBody(), initializers);
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/ControlFlowAnalyzer.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/ControlFlowAnalyzer.java
index 06129923e8f..474ea917c4f 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/ControlFlowAnalyzer.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/ControlFlowAnalyzer.java
@@ -18,7 +18,6 @@ package org.jetbrains.jet.lang.resolve;
 
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.jet.lang.cfg.JetFlowInformationProvider;
-import org.jetbrains.jet.lang.descriptors.NamespaceDescriptor;
 import org.jetbrains.jet.lang.descriptors.PropertyAccessorDescriptor;
 import org.jetbrains.jet.lang.descriptors.PropertyDescriptor;
 import org.jetbrains.jet.lang.descriptors.SimpleFunctionDescriptor;
@@ -26,6 +25,7 @@ import org.jetbrains.jet.lang.psi.*;
 import org.jetbrains.jet.lang.types.JetType;
 
 import javax.inject.Inject;
+import java.util.List;
 import java.util.Map;
 
 import static org.jetbrains.jet.lang.types.TypeUtils.NO_EXPECTED_TYPE;
@@ -48,13 +48,16 @@ public class ControlFlowAnalyzer {
     }
 
     public void process(@NotNull BodiesResolveContext bodiesResolveContext) {
+        for (JetFile file : bodiesResolveContext.getFiles()) {
+            checkDeclarationContainer(file);
+        }
         for (JetClass aClass : bodiesResolveContext.getClasses().keySet()) {
             if (!bodiesResolveContext.completeAnalysisNeeded(aClass)) continue;
-            checkClassOrObject(aClass);
+            checkDeclarationContainer(aClass);
         }
         for (JetObjectDeclaration objectDeclaration : bodiesResolveContext.getObjects().keySet()) {
             if (!bodiesResolveContext.completeAnalysisNeeded(objectDeclaration)) continue;
-            checkClassOrObject(objectDeclaration);
+            checkDeclarationContainer(objectDeclaration);
         }
         for (Map.Entry<JetNamedFunction, SimpleFunctionDescriptor> entry : bodiesResolveContext.getFunctions().entrySet()) {
             JetNamedFunction function = entry.getKey();
@@ -73,10 +76,15 @@ public class ControlFlowAnalyzer {
         }
     }
 
-    private void checkClassOrObject(JetClassOrObject klass) {
-        // A pseudocode of class initialization corresponds to a class
-        JetFlowInformationProvider flowInformationProvider = new JetFlowInformationProvider(klass, trace);
-        flowInformationProvider.markUninitializedVariables(topDownAnalysisParameters.isDeclaredLocally());
+    private void checkDeclarationContainer(JetDeclarationContainer declarationContainer) {
+        // A pseudocode of class/object initialization corresponds to a class/object
+        // or initialization of properties corresponds to a package declared in a file
+        JetFlowInformationProvider flowInformationProvider = new JetFlowInformationProvider((JetElement) declarationContainer, trace);
+        flowInformationProvider.recordInitializedVariables();
+
+        if (topDownAnalysisParameters.isDeclaredLocally()) return;
+
+        flowInformationProvider.markUninitializedVariables();
     }
 
     private void checkProperty(JetProperty property, PropertyDescriptor propertyDescriptor) {
@@ -87,13 +95,6 @@ public class ControlFlowAnalyzer {
             assert accessorDescriptor != null;
             checkFunction(accessor, accessorDescriptor.getReturnType());
         }
-        if (property.getInitializer() != null && propertyDescriptor.getContainingDeclaration() instanceof NamespaceDescriptor) {
-            // check initializer's pseudocode for uninitialized values
-            // initializers of properties inside classes/objects are checked in 'checkClassOrObject',
-            // because class/object may have anonymous initialization blocks that affect analysis
-            JetFlowInformationProvider flowInformationProvider = new JetFlowInformationProvider(property, trace);
-            flowInformationProvider.markUninitializedVariables(false);
-        }
     }
 
     private void checkFunction(JetDeclarationWithBody function, final @NotNull JetType expectedReturnType) {
@@ -103,11 +104,19 @@ public class ControlFlowAnalyzer {
         if (bodyExpression == null) return;
         JetFlowInformationProvider flowInformationProvider = new JetFlowInformationProvider((JetDeclaration) function, trace);
 
+        boolean isPropertyAccessor = function instanceof JetPropertyAccessor;
+        if (!isPropertyAccessor) {
+            flowInformationProvider.recordInitializedVariables();
+        }
+
+        if (topDownAnalysisParameters.isDeclaredLocally()) return;
+
         flowInformationProvider.checkDefiniteReturn(expectedReturnType);
 
-        // Property accessor is checked through initialization of a class check (at 'checkClassOrObject')
-        boolean isPropertyAccessor = function instanceof JetPropertyAccessor;
-        flowInformationProvider.markUninitializedVariables(topDownAnalysisParameters.isDeclaredLocally() || isPropertyAccessor);
+        if (!isPropertyAccessor) {
+            // Property accessor is checked through initialization of a class/object or package properties (at 'checkDeclarationContainer')
+            flowInformationProvider.markUninitializedVariables();
+        }
 
         flowInformationProvider.markUnusedVariables();
 
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/propertiesOrderInPackage.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/propertiesOrderInPackage.kt
new file mode 100644
index 00000000000..ec920b67de7
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/propertiesOrderInPackage.kt
@@ -0,0 +1,4 @@
+package a
+
+val a : Int = <!UNINITIALIZED_VARIABLE!>b<!>
+val b : Int = a
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index 70450b56079..62e02bc18d9 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -964,6 +964,11 @@ public class JetDiagnosticsTestGenerated extends AbstractDiagnosticsTestWithEage
                 doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/kt897.kt");
             }
             
+            @TestMetadata("propertiesOrderInPackage.kt")
+            public void testPropertiesOrderInPackage() throws Exception {
+                doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/propertiesOrderInPackage.kt");
+            }
+            
             @TestMetadata("uninitializedInLocalDeclarations.kt")
             public void testUninitializedInLocalDeclarations() throws Exception {
                 doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/uninitializedInLocalDeclarations.kt");