diff --git a/j2k.ipr b/j2k.ipr
index f175e7ecb1a..85640093dc3 100644
--- a/j2k.ipr
+++ b/j2k.ipr
@@ -3,6 +3,17 @@
   <component name="AntConfiguration">
     <defaultAnt bundledAnt="true" />
   </component>
+  <component name="ArtifactManager">
+    <artifact type="jar" build-on-make="true" name="j2k:jar">
+      <output-path>$PROJECT_DIR$/out/artifacts/j2k_jar</output-path>
+      <root id="archive" name="j2k.jar">
+        <element id="directory" name="META-INF">
+          <element id="file-copy" path="$PROJECT_DIR$/src/META-INF/MANIFEST.MF" />
+        </element>
+        <element id="module-output" name="j2k" />
+      </root>
+    </artifact>
+  </component>
   <component name="CompilerConfiguration">
     <option name="DEFAULT_COMPILER" value="Javac" />
     <resourceExtensions />
diff --git a/jre/lib/annotations.jar b/jre/lib/annotations.jar
index 5de67805f7b..e69de29bb2d 100644
Binary files a/jre/lib/annotations.jar and b/jre/lib/annotations.jar differ
diff --git a/src/META-INF/MANIFEST.MF b/src/META-INF/MANIFEST.MF
new file mode 100644
index 00000000000..558fbaba78d
--- /dev/null
+++ b/src/META-INF/MANIFEST.MF
@@ -0,0 +1,3 @@
+Manifest-Version: 1.0
+Main-Class: org.jetbrains.jet.j2k.JavaToKotlinTranslator
+
diff --git a/src/org/jetbrains/jet/j2k/JavaToKotlinTranslator.java b/src/org/jetbrains/jet/j2k/JavaToKotlinTranslator.java
index 7a7b224f62c..0522750afe0 100644
--- a/src/org/jetbrains/jet/j2k/JavaToKotlinTranslator.java
+++ b/src/org/jetbrains/jet/j2k/JavaToKotlinTranslator.java
@@ -50,8 +50,10 @@ public class JavaToKotlinTranslator {
     });
 
     javaCoreEnvironment.addToClasspath(findRtJar(true));
-    javaCoreEnvironment.addToClasspath(new File("jre/lib/annotations.jar"));
-
+    File annotations = findAnnotations();
+    if (annotations != null && annotations.exists()) {
+      javaCoreEnvironment.addToClasspath(annotations);
+    }
     return PsiFileFactory.getInstance(javaCoreEnvironment.getProject()).createFileFromText(
       name, JavaLanguage.INSTANCE, text
     );
@@ -108,6 +110,18 @@ public class JavaToKotlinTranslator {
     return null;
   }
 
+  @Nullable
+  private static File findAnnotations() {
+    ClassLoader systemClassLoader = ClassLoader.getSystemClassLoader();
+    if (systemClassLoader instanceof URLClassLoader) {
+      URLClassLoader loader = (URLClassLoader) systemClassLoader;
+      for (URL url : loader.getURLs())
+        if ("file".equals(url.getProtocol()) && url.getFile().endsWith("/annotations.jar"))
+          return new File(url.getFile());
+    }
+    return null;
+  }
+
   public static File findActiveRtJar(boolean failOnError) {
     ClassLoader systemClassLoader = ClassLoader.getSystemClassLoader();
     if (systemClassLoader instanceof URLClassLoader) {