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 de31381bfe7..0b9859cba2c 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
@@ -110,6 +110,7 @@ abstract class CommonCompilerArguments : CommonToolArguments() {
         return HashMap<AnalysisFlag<*>, Any>().apply {
             put(AnalysisFlag.skipMetadataVersionCheck, skipMetadataVersionCheck)
             put(AnalysisFlag.multiPlatformDoNotCheckActual, noCheckActual)
+            put(AnalysisFlag.allowKotlinPackage, allowKotlinPackage)
         }
     }
 
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 f1e5574f4e2..73627216969 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/contracts/parsing/ContractParsingServices.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/contracts/parsing/ContractParsingServices.kt
@@ -44,7 +44,9 @@ class ContractParsingServices(val languageVersionSettings: LanguageVersionSettin
         val contractProvider = ownerDescriptor.getUserData(ContractProviderKey) ?: return
 
         val isFeatureTurnedOn = languageVersionSettings.supportsFeature(LanguageFeature.CallsInPlaceEffect) ||
-                                languageVersionSettings.supportsFeature(LanguageFeature.ReturnsEffect)
+                                languageVersionSettings.supportsFeature(LanguageFeature.ReturnsEffect) ||
+                                // This condition is here for technical purposes of compiling 1.2-runtime with contracts
+                                languageVersionSettings.getFlag(AnalysisFlag.Flags.allowKotlinPackage)
 
         val contractDescriptor = when {
             !isFeatureTurnedOn || !isContractDescriptionCallPreciseCheck(expression, trace.bindingContext) -> null
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/FunctionDescriptorResolver.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/FunctionDescriptorResolver.kt
index f3d3ed06329..f66fc96c116 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/FunctionDescriptorResolver.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/FunctionDescriptorResolver.kt
@@ -221,7 +221,9 @@ class FunctionDescriptorResolver(
         val emptyContract = LazyContractProvider.createInitialized(null)
 
         val isContractsEnabled = languageVersionSettings.supportsFeature(LanguageFeature.CallsInPlaceEffect) ||
-                                 languageVersionSettings.supportsFeature(LanguageFeature.ReturnsEffect)
+                                 languageVersionSettings.supportsFeature(LanguageFeature.ReturnsEffect) ||
+                                 // We need to enable contracts if we're compiling "kotlin"-package to be able to ship contracts in stdlib in 1.2
+                                 languageVersionSettings.getFlag(AnalysisFlag.allowKotlinPackage)
 
         if (!isContractsEnabled || !contractParsingServices.fastCheckIfContractPresent(function)) return emptyContract
 
diff --git a/compiler/util/src/org/jetbrains/kotlin/config/AnalysisFlag.kt b/compiler/util/src/org/jetbrains/kotlin/config/AnalysisFlag.kt
index 223f60ea81f..e8a469113a9 100644
--- a/compiler/util/src/org/jetbrains/kotlin/config/AnalysisFlag.kt
+++ b/compiler/util/src/org/jetbrains/kotlin/config/AnalysisFlag.kt
@@ -53,5 +53,8 @@ class AnalysisFlag<out T> internal constructor(
 
         @JvmStatic
         val jsr305 by Flag.Jsr305StateWarnByDefault
+
+        @JvmStatic
+        val allowKotlinPackage by Flag.Boolean
     }
 }