diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/cfg/pseudocode/PseudocodeImpl.java b/compiler/frontend/src/org/jetbrains/jet/lang/cfg/pseudocode/PseudocodeImpl.java
index ff2f033d666..72a8b008d50 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/cfg/pseudocode/PseudocodeImpl.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/cfg/pseudocode/PseudocodeImpl.java
@@ -483,16 +483,12 @@ public class PseudocodeImpl implements Pseudocode {
             }
         }
         for (int index = startIndex; index < finishIndex; index++) {
-            Instruction oldInstruction = mutableInstructionList.get(index);
-            Instruction newInstruction = copyInstruction(oldInstruction, originalToCopy);
-            if (originalLabelsForInstruction.containsKey(oldInstruction)) {
-                Collection<Label> oldLabels = originalLabelsForInstruction.get(oldInstruction);
-                for (Label oldLabel : oldLabels) {
-                    bindLabel(originalToCopy.get(oldLabel));
-                }
-            }
-            addInstruction(newInstruction);
+            Instruction originalInstruction = mutableInstructionList.get(index);
+            repeatLabelsBindingForInstruction(originalInstruction, originalToCopy, originalLabelsForInstruction);
+            addInstruction(copyInstruction(originalInstruction, originalToCopy));
         }
+        repeatLabelsBindingForInstruction(mutableInstructionList.get(finishIndex), originalToCopy, originalLabelsForInstruction);
+
         for (Map.Entry<Label, Label> entry : originalToCopy.entrySet()) {
             Label oldLabel = entry.getKey();
             Label newLabel = entry.getValue();
@@ -503,6 +499,16 @@ public class PseudocodeImpl implements Pseudocode {
         }
     }
 
+    private void repeatLabelsBindingForInstruction(
+            @NotNull Instruction originalInstruction,
+            @NotNull Map<Label, Label> originalToCopy,
+            @NotNull Multimap<Instruction, Label> originalLabelsForInstruction
+    ) {
+        for (Label originalLabel : originalLabelsForInstruction.get(originalInstruction)) {
+            bindLabel(originalToCopy.get(originalLabel));
+        }
+    }
+
     private Instruction copyInstruction(@NotNull Instruction instruction, @NotNull Map<Label, Label> originalToCopy) {
         if (instruction instanceof AbstractJumpInstruction) {
             Label originalTarget = ((AbstractJumpInstruction) instruction).getTargetLabel();
diff --git a/compiler/testData/cfg/FinallyTestCopy.instructions b/compiler/testData/cfg/FinallyTestCopy.instructions
index b6135cce62c..71a35b4c050 100644
--- a/compiler/testData/cfg/FinallyTestCopy.instructions
+++ b/compiler/testData/cfg/FinallyTestCopy.instructions
@@ -163,7 +163,7 @@ L10 [skipFinallyToErrorBlock]:
     r(cond())                                    NEXT:[jf(copy L12)]                                                PREV:[r(cond)]
     jf(copy L12)                                 NEXT:[jmp(L2 [loop entry point]), ret L1]                          PREV:[r(cond())]
     ret L1                                       NEXT:[<END>]                                                       PREV:[jf(copy L12)]
--   jmp(L13)                                     NEXT:[jmp(error)]                                                  PREV:[]
+-   jmp(copy L13)                                NEXT:[jmp(L2 [loop entry point])]                                  PREV:[]
     jmp(L2 [loop entry point])                   NEXT:[r(cond)]                                                     PREV:[jf(copy L12)]
 L15 [stop [d0, d1, d2]]:
 -   jmp(L2 [loop entry point])                   NEXT:[r(cond)]                                                     PREV:[]
@@ -258,3 +258,59 @@ error:
 sink:
     <SINK>                                   NEXT:[]                                                            PREV:[<ERROR>, <END>]
 =====================
+== doTestCopy4 ==
+fun doTestCopy4() : Int {
+    try {
+        doSmth()
+    }
+    finally {
+        if(list != null) {
+        }
+    }
+}
+---------------------
+L0:
+    <START>                                 NEXT:[r(try { doSmth() } finally {..)]         PREV:[]
+    r(try {                             
+            doSmth()                    
+        }                               
+        finally {                       
+            if(list != null) {          
+            }                           
+        })                                  NEXT:[jmp?(L2 [onExceptionToFinallyBlock])]    PREV:[<START>]
+    jmp?(L2 [onExceptionToFinallyBlock])    NEXT:[r(list), r(doSmth)]                      PREV:[r(try { doSmth() } finally {..)]
+    r(doSmth)                               NEXT:[r(doSmth())]                             PREV:[jmp?(L2 [onExceptionToFinallyBlock])]
+    r(doSmth())                             NEXT:[jmp(L3 [skipFinallyToErrorBlock])]       PREV:[r(doSmth)]
+d0:
+    jmp(L3 [skipFinallyToErrorBlock])       NEXT:[r(list)]                                 PREV:[r(doSmth())]
+L2 [onExceptionToFinallyBlock]:
+L4 [start finally]:
+    r(list)                                 NEXT:[r(null)]                                 PREV:[jmp?(L2 [onExceptionToFinallyBlock])]
+    r(null)                                 NEXT:[r(!=)]                                   PREV:[r(list)]
+    r(!=)                                   NEXT:[r(list != null)]                         PREV:[r(null)]
+    r(list != null)                         NEXT:[jf(L5)]                                  PREV:[r(!=)]
+    jf(L5)                                  NEXT:[read (Unit), read (Unit)]                PREV:[r(list != null)]
+    read (Unit)                             NEXT:[jmp(L6)]                                 PREV:[jf(L5)]
+    jmp(L6)                                 NEXT:[jmp(error)]                              PREV:[read (Unit)]
+L5:
+    read (Unit)                             NEXT:[jmp(error)]                              PREV:[jf(L5)]
+L6:
+L7 [finish finally]:
+    jmp(error)                              NEXT:[<ERROR>]                                 PREV:[jmp(L6), read (Unit)]
+L3 [skipFinallyToErrorBlock]:
+    r(list)                                 NEXT:[r(null)]                                 PREV:[jmp(L3 [skipFinallyToErrorBlock])]
+    r(null)                                 NEXT:[r(!=)]                                   PREV:[r(list)]
+    r(!=)                                   NEXT:[r(list != null)]                         PREV:[r(null)]
+    r(list != null)                         NEXT:[jf(copy L5)]                             PREV:[r(!=)]
+    jf(copy L5)                             NEXT:[read (Unit), read (Unit)]                PREV:[r(list != null)]
+    read (Unit)                             NEXT:[jmp(copy L6)]                            PREV:[jf(copy L5)]
+    jmp(copy L6)                            NEXT:[<END>]                                   PREV:[read (Unit)]
+    read (Unit)                             NEXT:[<END>]                                   PREV:[jf(copy L5)]
+L1:
+L8 [stop [d0]]:
+    <END>                                   NEXT:[<SINK>]                                  PREV:[jmp(copy L6), read (Unit)]
+error:
+    <ERROR>                                 NEXT:[<SINK>]                                  PREV:[jmp(error)]
+sink:
+    <SINK>                                  NEXT:[]                                        PREV:[<ERROR>, <END>]
+=====================
diff --git a/compiler/testData/cfg/FinallyTestCopy.jet b/compiler/testData/cfg/FinallyTestCopy.jet
index 7c31532f738..c44079c9caf 100644
--- a/compiler/testData/cfg/FinallyTestCopy.jet
+++ b/compiler/testData/cfg/FinallyTestCopy.jet
@@ -45,3 +45,13 @@ fun testCopy3() {
         while (cond());
     }
 }
+
+fun doTestCopy4() : Int {
+    try {
+        doSmth()
+    }
+    finally {
+        if(list != null) {
+        }
+    }
+}