diff --git a/compiler/backend/backend.iml b/compiler/backend/backend.iml
index 737dd163839..6cd681955b5 100644
--- a/compiler/backend/backend.iml
+++ b/compiler/backend/backend.iml
@@ -15,7 +15,7 @@
     <orderEntry type="library" name="protobuf-java" level="project" />
     <orderEntry type="module" module-name="serialization.java" />
     <orderEntry type="module" module-name="descriptor.loader.java" />
-    <orderEntry type="library" name="kotlin-runtime" level="project" />
+    <orderEntry type="module" module-name="util" />
   </component>
 </module>
 
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/ImplementationBodyCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/ImplementationBodyCodegen.java
index 19463c304e0..c10ef5b387a 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/ImplementationBodyCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/ImplementationBodyCodegen.java
@@ -1129,7 +1129,7 @@ public class ImplementationBodyCodegen extends ClassBodyCodegen {
         final MutableClosure closure = context.closure;
         ConstructorDescriptor constructorDescriptor = bindingContext.get(BindingContext.CONSTRUCTOR, myClass);
 
-        ConstructorContext constructorContext = context.intoConstructor(constructorDescriptor);
+        ConstructorContext constructorContext = context.intoConstructor(constructorDescriptor, closure);
 
         if (state.getClassBuilderMode() == ClassBuilderMode.FULL) {
             lookupConstructorExpressionsInClosureIfPresent(constructorContext);
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/context/CodegenContext.java b/compiler/backend/src/org/jetbrains/jet/codegen/context/CodegenContext.java
index dbf72d35b82..64355ed58cd 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/context/CodegenContext.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/context/CodegenContext.java
@@ -16,6 +16,7 @@
 
 package org.jetbrains.jet.codegen.context;
 
+import jet.Function0;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 import org.jetbrains.asm4.Type;
@@ -30,6 +31,8 @@ import org.jetbrains.jet.lang.descriptors.impl.ConstructorDescriptorImpl;
 import org.jetbrains.jet.lang.resolve.BindingContext;
 import org.jetbrains.jet.lang.resolve.DescriptorUtils;
 import org.jetbrains.jet.lang.types.JetType;
+import org.jetbrains.jet.storage.LockBasedStorageManager;
+import org.jetbrains.jet.storage.NullableLazyValue;
 
 import java.util.Collections;
 import java.util.HashMap;
@@ -62,7 +65,7 @@ public abstract class CodegenContext<T extends DeclarationDescriptor> {
 
     private Map<DeclarationDescriptor, CodegenContext> childContexts;
 
-    protected StackValue outerExpression;
+    private NullableLazyValue<StackValue> lazyOuterExpression;
 
     private final LocalLookup enclosingLocalLookup;
 
@@ -129,7 +132,7 @@ public abstract class CodegenContext<T extends DeclarationDescriptor> {
     }
 
     private StackValue getOuterExpression(@Nullable StackValue prefix, boolean ignoreNoOuter, boolean captureThis) {
-        if (outerExpression == null) {
+        if (lazyOuterExpression == null || lazyOuterExpression.invoke() == null) {
             if (ignoreNoOuter) {
                 return null;
             }
@@ -140,7 +143,7 @@ public abstract class CodegenContext<T extends DeclarationDescriptor> {
         if (captureThis) {
             closure.setCaptureThis();
         }
-        return prefix != null ? StackValue.composed(prefix, outerExpression) : outerExpression;
+        return prefix != null ? StackValue.composed(prefix, lazyOuterExpression.invoke()) : lazyOuterExpression.invoke();
     }
 
     @NotNull
@@ -184,13 +187,13 @@ public abstract class CodegenContext<T extends DeclarationDescriptor> {
     }
 
     @NotNull
-    public ConstructorContext intoConstructor(ConstructorDescriptor descriptor) {
+    public ConstructorContext intoConstructor(@Nullable ConstructorDescriptor descriptor, @Nullable MutableClosure closure) {
         if (descriptor == null) {
             descriptor = new ConstructorDescriptorImpl(getThisDescriptor(), Collections.<AnnotationDescriptor>emptyList(), true)
                     .initialize(Collections.<TypeParameterDescriptor>emptyList(), Collections.<ValueParameterDescriptor>emptyList(),
                                 Visibilities.PUBLIC);
         }
-        return new ConstructorContext(descriptor, getContextKind(), this);
+        return new ConstructorContext(descriptor, getContextKind(), this, closure);
     }
 
     @NotNull
@@ -294,14 +297,19 @@ public abstract class CodegenContext<T extends DeclarationDescriptor> {
 
     public abstract boolean isStatic();
 
-    protected void initOuterExpression(JetTypeMapper typeMapper, ClassDescriptor classDescriptor) {
-        ClassDescriptor enclosingClass = getEnclosingClass();
-        outerExpression = enclosingClass != null && canHaveOuter(typeMapper.getBindingContext(), classDescriptor)
-                          ? StackValue.field(typeMapper.mapType(enclosingClass),
-                                             CodegenBinding.getAsmType(typeMapper.getBindingTrace(), classDescriptor),
-                                             CAPTURED_THIS_FIELD,
-                                             false)
-                          : null;
+    protected void initOuterExpression(@NotNull final JetTypeMapper typeMapper, @NotNull final ClassDescriptor classDescriptor) {
+        lazyOuterExpression = LockBasedStorageManager.NO_LOCKS.createNullableLazyValue(new Function0<StackValue>() {
+            @Override
+            public StackValue invoke() {
+                ClassDescriptor enclosingClass = getEnclosingClass();
+                return enclosingClass != null && canHaveOuter(typeMapper.getBindingContext(), classDescriptor)
+                       ? StackValue.field(typeMapper.mapType(enclosingClass),
+                                          CodegenBinding.getAsmType(typeMapper.getBindingTrace(), classDescriptor),
+                                          CAPTURED_THIS_FIELD,
+                                          false)
+                       : null;
+            }
+        });
     }
 
     public StackValue lookupInContext(DeclarationDescriptor d, @Nullable StackValue result, GenerationState state, boolean ignoreNoOuter) {
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/context/ConstructorContext.java b/compiler/backend/src/org/jetbrains/jet/codegen/context/ConstructorContext.java
index 62162202bfc..fae01feb874 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/context/ConstructorContext.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/context/ConstructorContext.java
@@ -17,9 +17,10 @@
 package org.jetbrains.jet.codegen.context;
 
 import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
 import org.jetbrains.jet.codegen.OwnerKind;
 import org.jetbrains.jet.codegen.StackValue;
-import org.jetbrains.jet.lang.descriptors.ClassDescriptor;
+import org.jetbrains.jet.codegen.binding.MutableClosure;
 import org.jetbrains.jet.lang.descriptors.ConstructorDescriptor;
 
 import static org.jetbrains.jet.lang.resolve.java.AsmTypeConstants.OBJECT_TYPE;
@@ -30,17 +31,15 @@ public class ConstructorContext extends MethodContext {
     public ConstructorContext(
             @NotNull ConstructorDescriptor contextDescriptor,
             @NotNull OwnerKind kind,
-            @NotNull CodegenContext parent
+            @NotNull CodegenContext parent,
+            @Nullable MutableClosure closure
     ) {
-        super(contextDescriptor, kind, parent);
-
-        ClassDescriptor type = getEnclosingClass();
-        outerExpression = type != null ? local1 : null;
+        super(contextDescriptor, kind, parent, closure);
     }
 
     @Override
     public StackValue getOuterExpression(StackValue prefix, boolean ignoreNoOuter) {
-        return outerExpression;
+        return closure != null && closure.getCaptureThis() != null ? local1 : null;
     }
 
     @Override
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/context/MethodContext.java b/compiler/backend/src/org/jetbrains/jet/codegen/context/MethodContext.java
index 6451c386573..3d65991849e 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/context/MethodContext.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/context/MethodContext.java
@@ -18,6 +18,7 @@ package org.jetbrains.jet.codegen.context;
 
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
+import org.jetbrains.jet.codegen.binding.MutableClosure;
 import org.jetbrains.jet.lang.resolve.java.AsmTypeConstants;
 import org.jetbrains.jet.codegen.OwnerKind;
 import org.jetbrains.jet.codegen.StackValue;
@@ -27,14 +28,24 @@ import org.jetbrains.jet.lang.descriptors.FunctionDescriptor;
 import org.jetbrains.jet.lang.descriptors.PropertyAccessorDescriptor;
 
 public class MethodContext extends CodegenContext {
+
     public MethodContext(
             @NotNull FunctionDescriptor contextType,
             @NotNull OwnerKind contextKind,
             @NotNull CodegenContext parentContext
+    ) {
+        this(contextType, contextKind, parentContext, null);
+    }
+
+    protected MethodContext(
+            @NotNull FunctionDescriptor contextType,
+            @NotNull OwnerKind contextKind,
+            @NotNull CodegenContext parentContext,
+            @Nullable MutableClosure closure
     ) {
         super(contextType instanceof PropertyAccessorDescriptor
               ? ((PropertyAccessorDescriptor) contextType).getCorrespondingProperty()
-              : contextType, contextKind, parentContext, null,
+              : contextType, contextKind, parentContext, closure,
               parentContext.hasThisDescriptor() ? parentContext.getThisDescriptor() : null, null);
     }