diff --git a/idea/src/org/jetbrains/jet/plugin/intentions/RemoveBracesIntention.kt b/idea/src/org/jetbrains/jet/plugin/intentions/RemoveBracesIntention.kt
index f72b02ac7d1..0a8e0fa51fe 100644
--- a/idea/src/org/jetbrains/jet/plugin/intentions/RemoveBracesIntention.kt
+++ b/idea/src/org/jetbrains/jet/plugin/intentions/RemoveBracesIntention.kt
@@ -28,6 +28,9 @@ import com.intellij.openapi.editor.Editor
 import com.intellij.psi.PsiFile
 import com.intellij.psi.PsiWhiteSpace
 import com.intellij.psi.PsiComment
+import org.jetbrains.jet.lang.psi.JetExpression
+import org.jetbrains.jet.plugin.intentions.declarations.JetDeclarationJoinLinesHandler
+import org.jetbrains.jet.lang.psi.JetProperty
 
 public class RemoveBracesIntention : JetSelfTargetingIntention<JetExpressionImpl>("remove.braces", javaClass()) {
     override fun isApplicableTo(element: JetExpressionImpl): Boolean {
@@ -56,10 +59,11 @@ public class RemoveBracesIntention : JetSelfTargetingIntention<JetExpressionImpl
 
         handleComments(element, jetBlockElement)
 
-        val newElement = jetBlockElement.replace(JetPsiFactory.createExpression(element.getProject(), firstStatement.getText()))
+        val project = element.getProject()
+        val newElement = jetBlockElement.replace(firstStatement.copy())
 
         if (expressionKind == ExpressionKind.DOWHILE) {
-            newElement.getParent()!!.addAfter(JetPsiFactory.createNewLine(element.getProject()), newElement)
+            newElement.getParent()!!.addAfter(JetPsiFactory.createNewLine(project), newElement)
         }
     }
 
diff --git a/idea/testData/intentions/removeBraces/forWithLocalVariable.kt b/idea/testData/intentions/removeBraces/forWithLocalVariable.kt
new file mode 100644
index 00000000000..3d4d7c5b4d5
--- /dev/null
+++ b/idea/testData/intentions/removeBraces/forWithLocalVariable.kt
@@ -0,0 +1,5 @@
+fun foo(a: List<Int>) {
+    for<caret> (x in a) {
+        val y = x
+    }
+}
\ No newline at end of file
diff --git a/idea/testData/intentions/removeBraces/forWithLocalVariable.kt.after b/idea/testData/intentions/removeBraces/forWithLocalVariable.kt.after
new file mode 100644
index 00000000000..53a8246dff9
--- /dev/null
+++ b/idea/testData/intentions/removeBraces/forWithLocalVariable.kt.after
@@ -0,0 +1,3 @@
+fun foo(a: List<Int>) {
+    for<caret> (x in a) val y = x
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/jet/plugin/intentions/IntentionTestGenerated.java b/idea/tests/org/jetbrains/jet/plugin/intentions/IntentionTestGenerated.java
index ae16f6b2859..ea648ed517b 100644
--- a/idea/tests/org/jetbrains/jet/plugin/intentions/IntentionTestGenerated.java
+++ b/idea/tests/org/jetbrains/jet/plugin/intentions/IntentionTestGenerated.java
@@ -3883,6 +3883,11 @@ public class IntentionTestGenerated extends AbstractIntentionTest {
             JetTestUtils.assertAllTestsPresentByMetadata(this.getClass(), "org.jetbrains.jet.generators.tests.TestsPackage", new File("idea/testData/intentions/removeBraces"), Pattern.compile("^(.+)\\.kt$"), true);
         }
         
+        @TestMetadata("forWithLocalVariable.kt")
+        public void testForWithLocalVariable() throws Exception {
+            doTest("idea/testData/intentions/removeBraces/forWithLocalVariable.kt");
+        }
+        
         @TestMetadata("removeBracesForDoWhile.kt")
         public void testRemoveBracesForDoWhile() throws Exception {
             doTest("idea/testData/intentions/removeBraces/removeBracesForDoWhile.kt");