diff --git a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/CommonCompilerArguments.kt b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/CommonCompilerArguments.kt
index fe140a5b9fc..17534dc32ae 100644
--- a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/CommonCompilerArguments.kt
+++ b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/CommonCompilerArguments.kt
@@ -314,7 +314,6 @@ abstract class CommonCompilerArguments : CommonToolArguments() {
         return HashMap<AnalysisFlag<*>, Any>().apply {
             put(AnalysisFlags.skipMetadataVersionCheck, skipMetadataVersionCheck)
             put(AnalysisFlags.multiPlatformDoNotCheckActual, noCheckActual)
-            put(AnalysisFlags.allowKotlinPackage, allowKotlinPackage)
             put(AnalysisFlags.experimental, experimental?.toList().orEmpty())
             put(AnalysisFlags.useExperimental, useExperimental?.toList().orEmpty())
             put(AnalysisFlags.explicitApiVersion, apiVersion != null)
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/config/AnalysisFlags.kt b/compiler/frontend/src/org/jetbrains/kotlin/config/AnalysisFlags.kt
index b72d157dee2..aefadcc1dda 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/config/AnalysisFlags.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/config/AnalysisFlags.kt
@@ -12,9 +12,6 @@ object AnalysisFlags {
     @JvmStatic
     val multiPlatformDoNotCheckActual by AnalysisFlag.Delegates.Boolean
 
-    @JvmStatic
-    val allowKotlinPackage by AnalysisFlag.Delegates.Boolean
-
     @JvmStatic
     val experimental by AnalysisFlag.Delegates.ListOfStrings
 
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/contracts/parsing/ContractParsingServices.kt b/compiler/frontend/src/org/jetbrains/kotlin/contracts/parsing/ContractParsingServices.kt
index ea5365bce33..8d0b8068dcd 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/contracts/parsing/ContractParsingServices.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/contracts/parsing/ContractParsingServices.kt
@@ -91,9 +91,7 @@ class ContractParsingServices(val languageVersionSettings: LanguageVersionSettin
     }
 
     private fun checkFeatureEnabled(collector: ContractParsingDiagnosticsCollector) {
-        val isFeatureTurnedOn = languageVersionSettings.supportsFeature(LanguageFeature.AllowContractsForCustomFunctions) ||
-                // This condition is here for technical purposes of compiling 1.2-runtime with contracts
-                languageVersionSettings.getFlag(AnalysisFlags.allowKotlinPackage)
+        val isFeatureTurnedOn = languageVersionSettings.supportsFeature(LanguageFeature.AllowContractsForCustomFunctions)
         if (!isFeatureTurnedOn) {
             collector.unsupportedFeature(languageVersionSettings)
         }
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/FunctionDescriptorResolver.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/FunctionDescriptorResolver.kt
index 5ea16bfd41f..6ad1b20bd36 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/FunctionDescriptorResolver.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/FunctionDescriptorResolver.kt
@@ -258,9 +258,7 @@ class FunctionDescriptorResolver(
     ): LazyContractProvider? {
         if (function !is KtNamedFunction) return null
 
-        val isContractsEnabled = languageVersionSettings.supportsFeature(LanguageFeature.AllowContractsForCustomFunctions) ||
-                // We need to enable contracts if we're compiling "kotlin"-package to be able to ship contracts in stdlib in 1.2
-                languageVersionSettings.getFlag(AnalysisFlags.allowKotlinPackage)
+        val isContractsEnabled = languageVersionSettings.supportsFeature(LanguageFeature.AllowContractsForCustomFunctions)
 
         if (!isContractsEnabled || !function.mayHaveContract()) return null