diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/cfg/JetControlFlowProcessor.java b/compiler/frontend/src/org/jetbrains/jet/lang/cfg/JetControlFlowProcessor.java
index 3eff79b88d4..9486dd32525 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/cfg/JetControlFlowProcessor.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/cfg/JetControlFlowProcessor.java
@@ -69,9 +69,9 @@ public class JetControlFlowProcessor {
 
     private Pseudocode generate(@NotNull JetDeclaration subroutine) {
         builder.enterSubroutine(subroutine);
+        CFPVisitor cfpVisitor = new CFPVisitor(false);
         if (subroutine instanceof JetDeclarationWithBody) {
             JetDeclarationWithBody declarationWithBody = (JetDeclarationWithBody) subroutine;
-            CFPVisitor cfpVisitor = new CFPVisitor(false);
             List<JetParameter> valueParameters = declarationWithBody.getValueParameters();
             for (JetParameter valueParameter : valueParameters) {
                 valueParameter.accept(cfpVisitor);
@@ -81,8 +81,13 @@ public class JetControlFlowProcessor {
                 bodyExpression.accept(cfpVisitor);
             }
         }
-        else {
-            subroutine.accept(new CFPVisitor(false));
+        else if (subroutine instanceof JetProperty) {
+            JetExpression initializer = ((JetProperty) subroutine).getInitializer();
+            if (initializer != null) {
+                initializer.accept(cfpVisitor);
+            }
+        } else {
+            subroutine.accept(cfpVisitor);
         }
         return builder.exitSubroutine(subroutine);
     }
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/ControlFlowAnalyzer.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/ControlFlowAnalyzer.java
index a470fcc72ae..06129923e8f 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/ControlFlowAnalyzer.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/ControlFlowAnalyzer.java
@@ -18,6 +18,7 @@ package org.jetbrains.jet.lang.resolve;
 
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.jet.lang.cfg.JetFlowInformationProvider;
+import org.jetbrains.jet.lang.descriptors.NamespaceDescriptor;
 import org.jetbrains.jet.lang.descriptors.PropertyAccessorDescriptor;
 import org.jetbrains.jet.lang.descriptors.PropertyDescriptor;
 import org.jetbrains.jet.lang.descriptors.SimpleFunctionDescriptor;
@@ -74,7 +75,7 @@ public class ControlFlowAnalyzer {
 
     private void checkClassOrObject(JetClassOrObject klass) {
         // A pseudocode of class initialization corresponds to a class
-        JetFlowInformationProvider flowInformationProvider = new JetFlowInformationProvider((JetDeclaration) klass, trace);
+        JetFlowInformationProvider flowInformationProvider = new JetFlowInformationProvider(klass, trace);
         flowInformationProvider.markUninitializedVariables(topDownAnalysisParameters.isDeclaredLocally());
     }
 
@@ -86,6 +87,13 @@ public class ControlFlowAnalyzer {
             assert accessorDescriptor != null;
             checkFunction(accessor, accessorDescriptor.getReturnType());
         }
+        if (property.getInitializer() != null && propertyDescriptor.getContainingDeclaration() instanceof NamespaceDescriptor) {
+            // check initializer's pseudocode for uninitialized values
+            // initializers of properties inside classes/objects are checked in 'checkClassOrObject',
+            // because class/object may have anonymous initialization blocks that affect analysis
+            JetFlowInformationProvider flowInformationProvider = new JetFlowInformationProvider(property, trace);
+            flowInformationProvider.markUninitializedVariables(false);
+        }
     }
 
     private void checkFunction(JetDeclarationWithBody function, final @NotNull JetType expectedReturnType) {
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2960.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2960.kt
new file mode 100644
index 00000000000..13f88409d76
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2960.kt
@@ -0,0 +1,27 @@
+//KT-2960 Perform control flow checks for package property initializers
+
+package b
+
+class P {
+    var x : Int = 0
+        private set
+}
+
+val p = P()
+var f = { -> <!INVISIBLE_SETTER!>p.x<!> = 32 }
+
+val o = object {
+    fun run() {
+        <!INVISIBLE_SETTER!>p.x<!> = 4
+
+        val z : Int
+        doSmth(<!UNINITIALIZED_VARIABLE, UNINITIALIZED_VARIABLE!>z<!>)
+    }
+}
+
+val g = { ->
+    val x: Int
+    doSmth(<!UNINITIALIZED_VARIABLE!>x<!>)
+}
+
+fun doSmth(i: Int) = i
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index 60ceeb7d8b7..70450b56079 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -919,6 +919,11 @@ public class JetDiagnosticsTestGenerated extends AbstractDiagnosticsTestWithEage
                 doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2845.kt");
             }
             
+            @TestMetadata("kt2960.kt")
+            public void testKt2960() throws Exception {
+                doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2960.kt");
+            }
+            
             @TestMetadata("kt2972.kt")
             public void testKt2972() throws Exception {
                 doTest("compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2972.kt");