diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/ExpressionCodegen.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/ExpressionCodegen.java
index d4cb79c672f..aa0ae1ac7cd 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/ExpressionCodegen.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/ExpressionCodegen.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2018 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license
+ * Copyright 2010-2019 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license
  * that can be found in the license/LICENSE.txt file.
  */
 
@@ -4041,7 +4041,7 @@ public class ExpressionCodegen extends KtVisitor<StackValue, StackValue> impleme
         else if (property.hasModifier(KtTokens.LATEINIT_KEYWORD)) {
             initializeLocalVariable(property, null);
         }
-        else if (!property.isVar()) {
+        else {
             initializeLocalVariableWithFakeDefaultValue(property);
         }
 
@@ -4194,10 +4194,10 @@ public class ExpressionCodegen extends KtVisitor<StackValue, StackValue> impleme
     private void initializeLocalVariableWithFakeDefaultValue(@NotNull KtProperty variableDeclaration) {
         LocalVariableDescriptor variableDescriptor = (LocalVariableDescriptor) getVariableDescriptorNotNull(variableDeclaration);
 
-        // For this kind of variables we generate boxes, i.e. we regard them as
-        if (isCapturedInClosureWithExactlyOnceEffect(bindingContext, variableDescriptor)) return;
+        // Boxed variables already have a value
+        if (isBoxedLocalCapturedInClosure(bindingContext, variableDescriptor)) return;
 
-        assert !variableDeclaration.isVar() && !variableDeclaration.hasDelegateExpressionOrInitializer() &&
+        assert !variableDeclaration.hasDelegateExpressionOrInitializer() &&
                 !variableDescriptor.isLateInit() : variableDeclaration.getText() + " in not variable declaration without initializer";
 
         KotlinType kotlinType = variableDescriptor.getType();
diff --git a/compiler/testData/codegen/bytecodeText/localInitializationLVT/boxingVar.kt b/compiler/testData/codegen/bytecodeText/localInitializationLVT/boxingVar.kt
new file mode 100644
index 00000000000..feffd901d03
--- /dev/null
+++ b/compiler/testData/codegen/bytecodeText/localInitializationLVT/boxingVar.kt
@@ -0,0 +1,12 @@
+// IGNORE_BACKEND: JVM_IR
+
+fun test(): java.lang.Integer {
+    var c: java.lang.Integer
+    run {
+        c = java.lang.Integer(1)
+    }
+    return c
+}
+
+// 1 ASTORE 0
+// 1 LOCALVARIABLE c Lkotlin/jvm/internal/Ref\$ObjectRef; L1 L11 0
\ No newline at end of file
diff --git a/compiler/testData/codegen/bytecodeText/localInitializationLVT/contractVar.kt b/compiler/testData/codegen/bytecodeText/localInitializationLVT/contractVar.kt
new file mode 100644
index 00000000000..528bc393c6b
--- /dev/null
+++ b/compiler/testData/codegen/bytecodeText/localInitializationLVT/contractVar.kt
@@ -0,0 +1,25 @@
+// IGNORE_BACKEND: JVM_IR
+
+import kotlin.contracts.ExperimentalContracts
+import kotlin.contracts.InvocationKind
+import kotlin.contracts.contract
+
+@ExperimentalContracts
+fun test(): Char {
+    var c: Char
+    doIt {
+        c = ' '
+    }
+    return c
+}
+
+@ExperimentalContracts
+fun doIt(block: () -> Unit) {
+    contract {
+        callsInPlace(block, InvocationKind.EXACTLY_ONCE)
+    }
+    block()
+}
+
+// 0 ISTORE 0
+// 1 LOCALVARIABLE c Lkotlin/jvm/internal/Ref\$CharRef; L1 L3 0
\ No newline at end of file
diff --git a/compiler/testData/codegen/bytecodeText/localInitializationLVT/genericsVar.kt b/compiler/testData/codegen/bytecodeText/localInitializationLVT/genericsVar.kt
new file mode 100644
index 00000000000..711caf60550
--- /dev/null
+++ b/compiler/testData/codegen/bytecodeText/localInitializationLVT/genericsVar.kt
@@ -0,0 +1,18 @@
+// IGNORE_BACKEND: JVM_IR
+
+inline fun <reified T> foo(default: T): T {
+    var t: T
+    run {
+        t = default
+    }
+    return t
+}
+
+fun test() {
+    foo(0.0f)
+}
+
+// two in foo and two in test
+
+// 2 ASTORE 2
+// 1 LOCALVARIABLE t\$iv Lkotlin/jvm/internal/Ref\$ObjectRef; L3 L13 2
\ No newline at end of file
diff --git a/compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatementVar.kt b/compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatementVar.kt
new file mode 100644
index 00000000000..e718f6fcf16
--- /dev/null
+++ b/compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatementVar.kt
@@ -0,0 +1,16 @@
+// IGNORE_BACKEND: JVM_IR
+
+import kotlin.random.Random
+
+fun test(): Char {
+    var c: Char
+    if (Random.nextBoolean()) {
+        c = '1'
+    } else {
+        c = '2'
+    }
+    return c
+}
+
+// 3 ISTORE 0
+// 1 LOCALVARIABLE c C L1 L7 0
diff --git a/compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatementWithoutBlockVar.kt b/compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatementWithoutBlockVar.kt
new file mode 100644
index 00000000000..e9f964995e6
--- /dev/null
+++ b/compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatementWithoutBlockVar.kt
@@ -0,0 +1,16 @@
+// IGNORE_BACKEND: JVM_IR
+
+import kotlin.random.Random
+
+fun test(): Char {
+    var c: Char
+    if (Random.nextBoolean())
+        c = '1'
+    else
+        c = '2'
+
+    return c
+}
+
+// 3 ISTORE 0
+// 1 LOCALVARIABLE c C L1 L5 0
diff --git a/compiler/testData/codegen/bytecodeText/localInitializationLVT/inlineClassVar.kt b/compiler/testData/codegen/bytecodeText/localInitializationLVT/inlineClassVar.kt
new file mode 100644
index 00000000000..9664a162f40
--- /dev/null
+++ b/compiler/testData/codegen/bytecodeText/localInitializationLVT/inlineClassVar.kt
@@ -0,0 +1,12 @@
+// IGNORE_BACKEND: JVM_IR
+
+fun test(): UInt {
+    var c: UInt
+    run {
+        c = 1u
+    }
+    return c
+}
+
+// 1 ASTORE 0
+// 1 LOCALVARIABLE c Lkotlin/jvm/internal/Ref\$IntRef; L1 L11 0
\ No newline at end of file
diff --git a/compiler/testData/codegen/bytecodeText/localInitializationLVT/var.kt b/compiler/testData/codegen/bytecodeText/localInitializationLVT/runVar.kt
similarity index 100%
rename from compiler/testData/codegen/bytecodeText/localInitializationLVT/var.kt
rename to compiler/testData/codegen/bytecodeText/localInitializationLVT/runVar.kt
diff --git a/compiler/testData/codegen/bytecodeText/localInitializationLVT/singleBlockVar.kt b/compiler/testData/codegen/bytecodeText/localInitializationLVT/singleBlockVar.kt
new file mode 100644
index 00000000000..d97dd063053
--- /dev/null
+++ b/compiler/testData/codegen/bytecodeText/localInitializationLVT/singleBlockVar.kt
@@ -0,0 +1,23 @@
+// IGNORE_BACKEND: JVM_IR
+
+fun test(): Char {
+    var c: Char
+    val l = Any()
+    val l1 = Any()
+    val l2 = Any()
+    val l3 = Any()
+    val l4 = Any()
+    val l5 = Any()
+    val l6 = Any()
+    val l7 = Any()
+    val l8 = Any()
+    val l11 = Any()
+    val l12 = Any()
+    val l13 = Any()
+    val l14 = Any()
+    c = '1'
+    return c
+}
+
+// 2 ISTORE 0
+// 1 LOCALVARIABLE c C L1 L16 0
diff --git a/compiler/testData/codegen/bytecodeText/localInitializationLVT/whenStatementVar.kt b/compiler/testData/codegen/bytecodeText/localInitializationLVT/whenStatementVar.kt
new file mode 100644
index 00000000000..4aedae6d4fd
--- /dev/null
+++ b/compiler/testData/codegen/bytecodeText/localInitializationLVT/whenStatementVar.kt
@@ -0,0 +1,22 @@
+// IGNORE_BACKEND: JVM_IR
+
+fun test(i: Int): Char {
+    var c: Char
+    when (i) {
+        1 -> c = '1'
+        2 -> c = '2'
+        3 -> c = '3'
+        4 -> c = '4'
+        5 -> c = '5'
+        6 -> c = '6'
+        7 -> c = '7'
+        8 -> c = '8'
+        9 -> c = '9'
+        0 -> c = '0'
+        else -> c = ' '
+    }
+    return c
+}
+
+// 12 ISTORE 1
+// 1 LOCALVARIABLE c C L1 L16 1
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BytecodeTextTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BytecodeTextTestGenerated.java
index 6555314a5fd..1dc515746b7 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BytecodeTextTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BytecodeTextTestGenerated.java
@@ -2612,31 +2612,61 @@ public class BytecodeTextTestGenerated extends AbstractBytecodeTextTest {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/boxing.kt");
         }
 
+        @TestMetadata("boxingVar.kt")
+        public void testBoxingVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/boxingVar.kt");
+        }
+
         @TestMetadata("contract.kt")
         public void testContract() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/contract.kt");
         }
 
+        @TestMetadata("contractVar.kt")
+        public void testContractVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/contractVar.kt");
+        }
+
         @TestMetadata("generics.kt")
         public void testGenerics() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/generics.kt");
         }
 
+        @TestMetadata("genericsVar.kt")
+        public void testGenericsVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/genericsVar.kt");
+        }
+
         @TestMetadata("ifStatement.kt")
         public void testIfStatement() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatement.kt");
         }
 
+        @TestMetadata("ifStatementVar.kt")
+        public void testIfStatementVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatementVar.kt");
+        }
+
         @TestMetadata("ifStatementWithoutBlock.kt")
         public void testIfStatementWithoutBlock() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatementWithoutBlock.kt");
         }
 
+        @TestMetadata("ifStatementWithoutBlockVar.kt")
+        public void testIfStatementWithoutBlockVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatementWithoutBlockVar.kt");
+        }
+
         @TestMetadata("inlineClass.kt")
         public void testInlineClass() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/inlineClass.kt");
         }
 
+        @TestMetadata("inlineClassVar.kt")
+        public void testInlineClassVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/inlineClassVar.kt");
+        }
+
         @TestMetadata("lateinit.kt")
         public void testLateinit() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/lateinit.kt");
@@ -2647,20 +2677,30 @@ public class BytecodeTextTestGenerated extends AbstractBytecodeTextTest {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/run.kt");
         }
 
+        @TestMetadata("runVar.kt")
+        public void testRunVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/runVar.kt");
+        }
+
         @TestMetadata("singleBlock.kt")
         public void testSingleBlock() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/singleBlock.kt");
         }
 
-        @TestMetadata("var.kt")
-        public void testVar() throws Exception {
-            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/var.kt");
+        @TestMetadata("singleBlockVar.kt")
+        public void testSingleBlockVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/singleBlockVar.kt");
         }
 
         @TestMetadata("whenStatement.kt")
         public void testWhenStatement() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/whenStatement.kt");
         }
+
+        @TestMetadata("whenStatementVar.kt")
+        public void testWhenStatementVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/whenStatementVar.kt");
+        }
     }
 
     @TestMetadata("compiler/testData/codegen/bytecodeText/multifileClasses")
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/IrBytecodeTextTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/IrBytecodeTextTestGenerated.java
index c89d2f8face..699c4eb0528 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/IrBytecodeTextTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/IrBytecodeTextTestGenerated.java
@@ -2612,31 +2612,61 @@ public class IrBytecodeTextTestGenerated extends AbstractIrBytecodeTextTest {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/boxing.kt");
         }
 
+        @TestMetadata("boxingVar.kt")
+        public void testBoxingVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/boxingVar.kt");
+        }
+
         @TestMetadata("contract.kt")
         public void testContract() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/contract.kt");
         }
 
+        @TestMetadata("contractVar.kt")
+        public void testContractVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/contractVar.kt");
+        }
+
         @TestMetadata("generics.kt")
         public void testGenerics() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/generics.kt");
         }
 
+        @TestMetadata("genericsVar.kt")
+        public void testGenericsVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/genericsVar.kt");
+        }
+
         @TestMetadata("ifStatement.kt")
         public void testIfStatement() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatement.kt");
         }
 
+        @TestMetadata("ifStatementVar.kt")
+        public void testIfStatementVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatementVar.kt");
+        }
+
         @TestMetadata("ifStatementWithoutBlock.kt")
         public void testIfStatementWithoutBlock() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatementWithoutBlock.kt");
         }
 
+        @TestMetadata("ifStatementWithoutBlockVar.kt")
+        public void testIfStatementWithoutBlockVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/ifStatementWithoutBlockVar.kt");
+        }
+
         @TestMetadata("inlineClass.kt")
         public void testInlineClass() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/inlineClass.kt");
         }
 
+        @TestMetadata("inlineClassVar.kt")
+        public void testInlineClassVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/inlineClassVar.kt");
+        }
+
         @TestMetadata("lateinit.kt")
         public void testLateinit() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/lateinit.kt");
@@ -2647,20 +2677,30 @@ public class IrBytecodeTextTestGenerated extends AbstractIrBytecodeTextTest {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/run.kt");
         }
 
+        @TestMetadata("runVar.kt")
+        public void testRunVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/runVar.kt");
+        }
+
         @TestMetadata("singleBlock.kt")
         public void testSingleBlock() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/singleBlock.kt");
         }
 
-        @TestMetadata("var.kt")
-        public void testVar() throws Exception {
-            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/var.kt");
+        @TestMetadata("singleBlockVar.kt")
+        public void testSingleBlockVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/singleBlockVar.kt");
         }
 
         @TestMetadata("whenStatement.kt")
         public void testWhenStatement() throws Exception {
             runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/whenStatement.kt");
         }
+
+        @TestMetadata("whenStatementVar.kt")
+        public void testWhenStatementVar() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeText/localInitializationLVT/whenStatementVar.kt");
+        }
     }
 
     @TestMetadata("compiler/testData/codegen/bytecodeText/multifileClasses")