diff --git a/backend.native/build.gradle b/backend.native/build.gradle
index 468efff3509..5621ebeb149 100644
--- a/backend.native/build.gradle
+++ b/backend.native/build.gradle
@@ -129,27 +129,25 @@ configurations {
     }
 }
 
-def localKotlinCompilerModule = project.files("libs/kotlin-compiler.jar")
-
 dependencies {
-    kotlin_compiler_jar localKotlinCompilerModule
-    kotlin_stdlib_jar project.files("libs/kotlin-stdlib.jar")
-    kotlin_reflect_jar project.files("libs/kotlin-reflect.jar")
-    kotlin_script_runtime_jar project.files("libs/kotlin-script-runtime.jar")
+    kotlin_compiler_jar "$kotlinCompilerModule@jar"
+    kotlin_stdlib_jar "$kotlinStdLibModule@jar"
+    kotlin_reflect_jar "$kotlinReflectModule@jar"
+    kotlin_script_runtime_jar "$kotlinScriptRuntimeModule@jar"
     kotlin_common_stdlib_src kotlinCommonStdlibModule
 
     compilerCompile "com.google.protobuf:protobuf-java:${protobufVersion}"
 
-    compilerCompile localKotlinCompilerModule
+    compilerCompile kotlinCompilerModule
     compilerCompile kotlinNativeInterop['llvm'].configuration
     compilerCompile kotlinNativeInterop['hash'].configuration
     compilerCompile "org.jetbrains.kotlin:kotlin-native-shared:$konanVersion"
 
-    cli_bcCompile localKotlinCompilerModule
+    cli_bcCompile kotlinCompilerModule
     cli_bcCompile "org.jetbrains.kotlin:kotlin-native-shared:$konanVersion"
     cli_bcCompile sourceSets.compiler.output
 
-    bc_frontendCompile localKotlinCompilerModule
+    bc_frontendCompile kotlinCompilerModule
 
     cli_bc sourceSets.cli_bc.output
 }
diff --git a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ir/Ir.kt b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ir/Ir.kt
index 53cf6c8d77f..0537ad9c259 100644
--- a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ir/Ir.kt
+++ b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ir/Ir.kt
@@ -362,7 +362,7 @@ internal class KonanSymbols(context: Context, val symbolTable: SymbolTable): Sym
     override val coroutineSuspendedGetter = symbolTable.referenceSimpleFunction(
             coroutinesIntrinsicsPackage
                     .getContributedVariables(COROUTINE_SUSPENDED_NAME, NoLookupLocation.FROM_BACKEND)
-                    .single().getter!!
+                    .filterNot { it.isExpect }.single().getter!!
     )
 
 
diff --git a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ir/KonanIr.kt b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ir/KonanIr.kt
index 24c357aa67f..3c5c29a831c 100644
--- a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ir/KonanIr.kt
+++ b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ir/KonanIr.kt
@@ -138,57 +138,6 @@ class IrFileImpl(entry: SourceManager.FileEntry) : IrFile {
 
 //-----------------------------------------------------------------------------//
 
-interface IrSuspensionPoint : IrExpression {
-    var suspensionPointIdParameter: IrVariable
-    var result: IrExpression
-    var resumeResult: IrExpression
-}
-
-interface IrSuspendableExpression : IrExpression {
-    var suspensionPointId: IrExpression
-    var result: IrExpression
-}
-
-class IrSuspensionPointImpl(startOffset: Int, endOffset: Int, type: IrType,
-                            override var suspensionPointIdParameter: IrVariable,
-                            override var result: IrExpression,
-                            override var resumeResult: IrExpression)
-    : IrExpressionBase(startOffset, endOffset, type), IrSuspensionPoint {
-
-    override fun <R, D> accept(visitor: IrElementVisitor<R, D>, data: D): R =
-            visitor.visitExpression(this, data)
-
-    override fun <D> acceptChildren(visitor: IrElementVisitor<Unit, D>, data: D) {
-        suspensionPointIdParameter.accept(visitor, data)
-        result.accept(visitor, data)
-        resumeResult.accept(visitor, data)
-    }
-
-    override fun <D> transformChildren(transformer: IrElementTransformer<D>, data: D) {
-        suspensionPointIdParameter = suspensionPointIdParameter.transform(transformer, data) as IrVariable
-        result = result.transform(transformer, data)
-        resumeResult = resumeResult.transform(transformer, data)
-    }
-}
-
-class IrSuspendableExpressionImpl(startOffset: Int, endOffset: Int, type: IrType,
-                                  override var suspensionPointId: IrExpression, override var result: IrExpression)
-    : IrExpressionBase(startOffset, endOffset, type), IrSuspendableExpression {
-
-    override fun <R, D> accept(visitor: IrElementVisitor<R, D>, data: D): R =
-            visitor.visitExpression(this, data)
-
-    override fun <D> acceptChildren(visitor: IrElementVisitor<Unit, D>, data: D) {
-        suspensionPointId.accept(visitor, data)
-        result.accept(visitor, data)
-    }
-
-    override fun <D> transformChildren(transformer: IrElementTransformer<D>, data: D) {
-        suspensionPointId = suspensionPointId.transform(transformer, data)
-        result = result.transform(transformer, data)
-    }
-}
-
 internal interface IrPrivateFunctionCall : IrCall {
     val virtualCallee: IrCall?
     val dfgSymbol: DataFlowIR.FunctionSymbol.Declared
diff --git a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/lower/FunctionInlining.kt b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/lower/FunctionInlining.kt
index cde9a660e78..b1e7d27414e 100644
--- a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/lower/FunctionInlining.kt
+++ b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/lower/FunctionInlining.kt
@@ -146,8 +146,18 @@ private class Inliner(val globalSubstituteMap: MutableMap<DeclarationDescriptor,
     }
 
     //-------------------------------------------------------------------------//
+    /**
+     * TODO: JVM inliner crashed on attempt inline this function from transform.kt with:
+     *  j.l.IllegalStateException: Couldn't obtain compiled function body for
+     *  public inline fun <reified T : org.jetbrains.kotlin.ir.IrElement> kotlin.collections.MutableList<T>.transform...
+     */
+     private inline fun <reified T : IrElement> MutableList<T>.transform(transformation: (T) -> IrElement) {
+          forEachIndexed { i, item ->
+              set(i, transformation(item) as T)
+          }
+     }
 
-    private fun inlineFunction(callee: IrCall,                                              // Call to be substituted.
+     private fun inlineFunction(callee: IrCall,                                             // Call to be substituted.
                                caller: IrFunction): IrReturnableBlockImpl {                 // Function to substitute.
 
         val copyFunctionDeclaration = copyIrElement.copy(                         // Create copy of original function.
diff --git a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/lower/SuspendFunctionsLowering.kt b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/lower/SuspendFunctionsLowering.kt
index 6f5ed7fbbce..2bb6847722b 100644
--- a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/lower/SuspendFunctionsLowering.kt
+++ b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/lower/SuspendFunctionsLowering.kt
@@ -22,9 +22,6 @@ import org.jetbrains.kotlin.backend.common.ir.createOverriddenDescriptor
 import org.jetbrains.kotlin.backend.common.lower.*
 import org.jetbrains.kotlin.backend.konan.Context
 import org.jetbrains.kotlin.backend.konan.descriptors.synthesizedName
-import org.jetbrains.kotlin.backend.konan.ir.IrSuspendableExpressionImpl
-import org.jetbrains.kotlin.backend.konan.ir.IrSuspensionPoint
-import org.jetbrains.kotlin.backend.konan.ir.IrSuspensionPointImpl
 import org.jetbrains.kotlin.backend.konan.irasdescriptors.typeWith
 import org.jetbrains.kotlin.descriptors.*
 import org.jetbrains.kotlin.descriptors.annotations.Annotations
diff --git a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/optimizations/DFGBuilder.kt b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/optimizations/DFGBuilder.kt
index 5d6a84fdf05..e6e199b1757 100644
--- a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/optimizations/DFGBuilder.kt
+++ b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/optimizations/DFGBuilder.kt
@@ -27,8 +27,6 @@ import org.jetbrains.kotlin.backend.konan.correspondingValueType
 import org.jetbrains.kotlin.backend.konan.descriptors.isInterface
 import org.jetbrains.kotlin.backend.konan.descriptors.target
 import org.jetbrains.kotlin.backend.konan.getTypeConversion
-import org.jetbrains.kotlin.backend.konan.ir.IrSuspendableExpression
-import org.jetbrains.kotlin.backend.konan.ir.IrSuspensionPoint
 import org.jetbrains.kotlin.backend.konan.ir.KonanIr
 import org.jetbrains.kotlin.backend.konan.irasdescriptors.*
 import org.jetbrains.kotlin.backend.konan.isValueType
diff --git a/backend.native/libs/kotlin-compiler.jar b/backend.native/libs/kotlin-compiler.jar
deleted file mode 100644
index 64498814b48..00000000000
Binary files a/backend.native/libs/kotlin-compiler.jar and /dev/null differ
diff --git a/backend.native/libs/kotlin-reflect.jar b/backend.native/libs/kotlin-reflect.jar
deleted file mode 100644
index 316099880ba..00000000000
Binary files a/backend.native/libs/kotlin-reflect.jar and /dev/null differ
diff --git a/backend.native/libs/kotlin-script-runtime.jar b/backend.native/libs/kotlin-script-runtime.jar
deleted file mode 100644
index 76d3d462fda..00000000000
Binary files a/backend.native/libs/kotlin-script-runtime.jar and /dev/null differ
diff --git a/backend.native/libs/kotlin-stdlib.jar b/backend.native/libs/kotlin-stdlib.jar
deleted file mode 100644
index 01f72354d95..00000000000
Binary files a/backend.native/libs/kotlin-stdlib.jar and /dev/null differ
diff --git a/gradle.properties b/gradle.properties
index 150c071e2b7..cb4642df797 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -20,8 +20,8 @@ remoteRoot=konan_tests
 #kotlinCompilerModule=org.jetbrains.kotlin:kotlin-compiler:1.1-SNAPSHOT
 # Download artifacts of https://teamcity.jetbrains.com/viewType.html?buildTypeId=Kotlin_120_Compiler
 testDataVersion=1226829:id
-kotlinCompilerRepo=https://teamcity.jetbrains.com/guestAuth/app/rest/builds/buildType:(id:Kotlin_dev_CompilerAllPlugins),number:1.2.60-dev-794,tag:kotlin-native,pinned:true/artifacts/content/maven
-kotlinVersion=1.2.60-dev-794
+kotlinCompilerRepo=https://teamcity.jetbrains.com/guestAuth/app/rest/builds/buildType:(id:Kotlin_dev_CompilerAllPlugins),number:1.2.70-dev-83,tag:kotlin-native,pinned:true/artifacts/content/maven
+kotlinVersion=1.2.70-dev-83
 konanVersion=0.8
 org.gradle.jvmargs='-Dfile.encoding=UTF-8'
 
diff --git a/runtime/src/main/kotlin/kotlin/coroutines/experimental/Intrinsics.kt b/runtime/src/main/kotlin/kotlin/coroutines/experimental/Intrinsics.kt
index 50b2286cdc9..9ab1b08ffc8 100644
--- a/runtime/src/main/kotlin/kotlin/coroutines/experimental/Intrinsics.kt
+++ b/runtime/src/main/kotlin/kotlin/coroutines/experimental/Intrinsics.kt
@@ -111,3 +111,14 @@ public actual inline fun <R, T> (suspend R.() -> T).startCoroutineUninterceptedO
         receiver: R,
         completion: Continuation<T>
 ): Any? = (this as Function2<R, Continuation<T>, Any?>).invoke(receiver, completion)
+
+
+
+/**
+ * This value is used as a return value of [suspendCoroutineOrReturn] `block` argument to state that
+ * the execution was suspended and will not return any result immediately.
+ */
+@SinceKotlin("1.1")
+public actual val COROUTINE_SUSPENDED: Any = CoroutineSuspendedMarker
+
+private object CoroutineSuspendedMarker
\ No newline at end of file