diff --git a/java/java-impl/src/com/intellij/refactoring/extractMethodObject/ExtractLightMethodObjectHandler.java b/java/java-impl/src/com/intellij/refactoring/extractMethodObject/ExtractLightMethodObjectHandler.java
index 7b1e4848d468..e7d734488aaa 100644
--- a/java/java-impl/src/com/intellij/refactoring/extractMethodObject/ExtractLightMethodObjectHandler.java
+++ b/java/java-impl/src/com/intellij/refactoring/extractMethodObject/ExtractLightMethodObjectHandler.java
@@ -133,7 +133,7 @@ public class ExtractLightMethodObjectHandler {
       }
     }
 
-    final PsiElement container;
+    PsiElement container;
     if (anchor == null) {
       container = ((PsiClassInitializer)containingClass.add(elementFactory.createClassInitializer())).getBody();
       anchor = container.getLastChild();
@@ -142,6 +142,17 @@ public class ExtractLightMethodObjectHandler {
       container = anchor.getParent();
     }
 
+    // add code blocks for ifs and loops if needed
+    if (anchor instanceof PsiStatement && RefactoringUtil.isLoopOrIf(container)) {
+      PsiBlockStatement codeBlockStatement =
+        (PsiBlockStatement)JavaPsiFacade.getElementFactory(project).createStatementFromText("{}", container);
+      codeBlockStatement.getCodeBlock().add(anchor);
+      PsiCodeBlock codeBlock = ((PsiBlockStatement)anchor.replace(codeBlockStatement)).getCodeBlock();
+      anchor = codeBlock.getStatements()[0];
+      originalAnchor = anchor;
+      container = codeBlock;
+    }
+
     final PsiElement firstElementCopy = container.addRangeBefore(elements[0], elements[elements.length - 1], anchor);
     final PsiElement[] elementsCopy = CodeInsightUtil.findStatementsInRange(copy,
                                                                             firstElementCopy.getTextRange().getStartOffset(),