diff --git a/python/openapi/src/com/jetbrains/python/packaging/PyRequirement.java b/python/openapi/src/com/jetbrains/python/packaging/PyRequirement.java
index f05a63174dcd..69fc837a5912 100644
--- a/python/openapi/src/com/jetbrains/python/packaging/PyRequirement.java
+++ b/python/openapi/src/com/jetbrains/python/packaging/PyRequirement.java
@@ -17,38 +17,91 @@ package com.jetbrains.python.packaging;
 
 import com.intellij.openapi.editor.Document;
 import com.intellij.openapi.fileEditor.FileDocumentManager;
-import com.intellij.openapi.util.io.FileUtil;
+import com.intellij.openapi.util.Pair;
 import com.intellij.openapi.util.text.StringUtil;
-import com.intellij.openapi.vfs.LocalFileSystem;
 import com.intellij.openapi.vfs.VirtualFile;
-import com.intellij.util.Function;
 import com.intellij.webcore.packaging.PackageVersionComparator;
 import com.jetbrains.python.packaging.requirement.PyRequirementRelation;
 import com.jetbrains.python.packaging.requirement.PyRequirementVersionSpec;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
-import java.net.URI;
-import java.net.URISyntaxException;
 import java.util.*;
 import java.util.regex.Matcher;
 import java.util.regex.Pattern;
+import java.util.stream.Collectors;
 
 /**
  * @author vlan
  * @see <a href="http://legacy.python.org/dev/peps/pep-0386/">[PEP-0386]</a>
  */
 public class PyRequirement {
-  private static final Pattern NAME = Pattern.compile("\\s*(\\w(\\w|[-.])*)\\s*(.*)");
-  private static final Pattern VERSION_SPEC = Pattern.compile("\\s*(<=?|>=?|==|!=)\\s*((\\w|[-.])+)");
-  private static final Pattern EDITABLE_EGG = Pattern.compile("\\s*(-e)?\\s*([^#]*)(#egg=(.*))?");
-  private static final Pattern RECURSIVE_REQUIREMENT = Pattern.compile("^-r\\s*(.*)");
-  private static final Pattern VCS_PATH = Pattern.compile(".*/([^/]+)/?");
 
-  @NotNull private final String myName;
-  @NotNull private final List<PyRequirementVersionSpec> myVersionSpecs;
-  @Nullable private final String myURL;
-  private final boolean myEditable;
+  @NotNull
+  private static final String EDITABLE_GROUP = "editable";
+
+  @NotNull
+  private static final String EDITABLE_REGEXP = "((?<" + EDITABLE_GROUP + ">-e|--editable)[ \t]+)?";
+
+  @NotNull
+  private static final String USER_AT_REGEXP = "[\\w-]+@";
+
+  @NotNull
+  private static final String PATH_GROUP = "path";
+
+  @NotNull
+  private static final String PATH_REGEXP = "(?<" + PATH_GROUP + ">[^@#\\s]+)";
+
+  @NotNull
+  private static final String REVISION_REGEXP = "(@[^#\\s]+)?";
+
+  @NotNull
+  private static final String EGG_GROUP = "egg";
+
+  @NotNull
+  private static final String EGG_REGEXP = "(#egg=(?<" + EGG_GROUP + ">\\S+))?";
+
+  @NotNull
+  private static final String COMMENT_REGEXP = "([ \t]+#.*)?";
+
+  @NotNull
+  private static final String ARCHIVE_NAME_GROUP = "name";
+
+  @NotNull
+  private static final Pattern GITHUB_ARCHIVE_URL =
+    Pattern.compile("https?://github\\.com/[^/\\s]+/(?<" + ARCHIVE_NAME_GROUP + ">[^/\\s]+)/archive/.+");
+
+  @NotNull
+  private static final Pattern ARCHIVE_URL =
+    Pattern.compile("https?://\\S+/" +
+                    "(?<" + ARCHIVE_NAME_GROUP + ">\\S+)" +
+                    "(\\.tar\\.gz|\\.zip)(#(sha1|sha224|sha256|sha384|sha512|md5)=\\w+)?" + COMMENT_REGEXP);
+
+  // supports: git+user@...
+  @NotNull
+  private static final Pattern GIT_PROJECT_URL = Pattern.compile(EDITABLE_REGEXP +
+                                                                 "git\\+" + USER_AT_REGEXP + "[^:\\s]+:" +
+                                                                 PATH_REGEXP + REVISION_REGEXP + EGG_REGEXP + COMMENT_REGEXP);
+
+  @NotNull
+  private static final Pattern BZR_PROJECT_URL = Pattern.compile(EDITABLE_REGEXP +
+                                                                 "bzr\\+lp:" +
+                                                                 PATH_REGEXP + REVISION_REGEXP + EGG_REGEXP + COMMENT_REGEXP);
+
+  // supports: (bzr|git|hg|svn)(+smth)?://...
+  @NotNull
+  private static final Pattern VCS_PROJECT_URL = Pattern.compile(EDITABLE_REGEXP +
+                                                                 "(bzr|git|hg|svn)(\\+[A-Za-z]+)?://?[^/]+/" +
+                                                                 PATH_REGEXP + REVISION_REGEXP + EGG_REGEXP + COMMENT_REGEXP);
+
+  @NotNull
+  private final String myName;
+
+  @NotNull
+  private final String myOptions;
+
+  @NotNull
+  private final List<PyRequirementVersionSpec> myVersionSpecs;
 
   public PyRequirement(@NotNull String name) {
     this(name, Collections.<PyRequirementVersionSpec>emptyList());
@@ -61,8 +114,7 @@ public class PyRequirement {
   public PyRequirement(@NotNull String name, @NotNull List<PyRequirementVersionSpec> versionSpecs) {
     myName = name;
     myVersionSpecs = versionSpecs;
-    myURL = null;
-    myEditable = false;
+    myOptions = toString();
   }
 
   public PyRequirement(@NotNull String name, @Nullable String version, @NotNull String url, boolean editable) {
@@ -73,61 +125,34 @@ public class PyRequirement {
     else {
       myVersionSpecs = Collections.emptyList();
     }
-    myURL = url;
-    myEditable = editable;
+    myOptions = url;
   }
 
   @NotNull
+  public String getName() {
+    return myName;
+  }
+
+  @NotNull
+  public String toOptions() {
+    return myOptions;
+  }
+
   @Override
   public String toString() {
-    return myName + StringUtil.join(myVersionSpecs,
-                                    new Function<PyRequirementVersionSpec, String>() {
-                                      @Override
-                                      public String fun(PyRequirementVersionSpec spec) {
-                                        return spec.toString();
-                                      }
-                                    },
-                                    ","
-    );
-  }
-
-  @NotNull
-  public List<String> toOptions() {
-    final List<String> results = new ArrayList<String>();
-    if (myEditable) {
-      results.add("-e");
-    }
-    if (myURL != null) {
-      final int size = myVersionSpecs.size();
-      assert size <= 1;
-      final String urlAndName = myURL + "#egg=" + myName;
-      if (size == 0) {
-        results.add(urlAndName);
-      }
-      else {
-        final PyRequirementVersionSpec versionSpec = myVersionSpecs.get(0);
-        assert versionSpec.getRelation() == PyRequirementRelation.EQ;
-        results.add(urlAndName + "-" + versionSpec.getVersion());
-      }
-      return results;
-    }
-    else {
-      results.add(toString());
-    }
-    return results;
+    return myName + StringUtil.join(myVersionSpecs, ",");
   }
 
   @Override
   public boolean equals(Object o) {
-    if (this == o) return true;
+    if (o == this) return true;
     if (o == null || getClass() != o.getClass()) return false;
 
     PyRequirement that = (PyRequirement)o;
 
-    if (myEditable != that.myEditable) return false;
     if (!myName.equals(that.myName)) return false;
-    if (myURL != null ? !myURL.equals(that.myURL) : that.myURL != null) return false;
     if (!myVersionSpecs.equals(that.myVersionSpecs)) return false;
+    if (!myOptions.equals(that.myOptions)) return false;
 
     return true;
   }
@@ -136,8 +161,7 @@ public class PyRequirement {
   public int hashCode() {
     int result = myName.hashCode();
     result = 31 * result + myVersionSpecs.hashCode();
-    result = 31 * result + (myURL != null ? myURL.hashCode() : 0);
-    result = 31 * result + (myEditable ? 1 : 0);
+    result = 31 * result + myOptions.hashCode();
     return result;
   }
 
@@ -147,27 +171,20 @@ public class PyRequirement {
       if (normalizeName(myName).equalsIgnoreCase(pkg.getName())) {
         for (PyRequirementVersionSpec spec : myVersionSpecs) {
           final int cmp = PackageVersionComparator.VERSION_COMPARATOR.compare(pkg.getVersion(), spec.getVersion());
-          final PyRequirementRelation relation = spec.getRelation();
-          if (!relation.isSuccessful(cmp)) {
+
+          if (!spec.getRelation().isSuccessful(cmp)) {
             return null;
           }
         }
         return pkg;
       }
     }
+
     return null;
   }
 
-  /**
-   * Parses requirement string as described in [pep-0386].
-   * For example: "myPackage&lt;=10.6a3"
-   *
-   * @param line requirement to parse
-   * @return requirement
-   * @throws IllegalArgumentException if line can't be parsed
-   */
   @NotNull
-  public static PyRequirement fromStringGuaranteed(@NotNull final String line) {
+  public static PyRequirement fromStringGuaranteed(@NotNull String line) {
     final PyRequirement requirement = fromString(line);
     if (requirement == null) {
       throw new IllegalArgumentException("Failed to parse " + line);
@@ -177,142 +194,169 @@ public class PyRequirement {
 
   @Nullable
   public static PyRequirement fromString(@NotNull String line) {
-    // TODO: Extras, multi-line requirements '\'
-    final PyRequirement editableEgg = parseEditableEgg(line);
-    if (editableEgg != null) {
-      return editableEgg;
+    final PyRequirement githubArchiveUrl = parseGithubArchiveUrl(line);
+    if (githubArchiveUrl != null) {
+      return githubArchiveUrl;
     }
-    final Matcher nameMatcher = NAME.matcher(line);
-    if (!nameMatcher.matches()) {
-      return null;
+
+    final PyRequirement archiveUrl = parseArchiveUrl(line);
+    if (archiveUrl != null) {
+      return archiveUrl;
     }
-    final String name = nameMatcher.group(1);
-    final String rest = nameMatcher.group(3);
-    final List<PyRequirementVersionSpec> versionSpecs = new ArrayList<PyRequirementVersionSpec>();
-    if (!rest.trim().isEmpty()) {
-      final Matcher versionSpecMatcher = VERSION_SPEC.matcher(rest);
-      while (versionSpecMatcher.find()) {
-        final String rel = versionSpecMatcher.group(1);
-        final String version = versionSpecMatcher.group(2);
-        final PyRequirementRelation relation = PyRequirementRelation.fromString(rel);
-        if (relation == null) {
-          return null;
-        }
-        versionSpecs.add(new PyRequirementVersionSpec(relation, version));
-      }
+
+    final PyRequirement vcsProjectUrl = parseVcsProjectUrl(line);
+    if (vcsProjectUrl != null) {
+      return vcsProjectUrl;
     }
-    return new PyRequirement(name, versionSpecs);
+
+    return null; // TODO
   }
 
   @NotNull
-  public static List<PyRequirement> parse(@NotNull String s) {
-    return parse(s, null, new HashSet<VirtualFile>());
+  public static List<PyRequirement> parse(@NotNull String text) {
+    return parse(text, null, new HashSet<>());
   }
 
   @NotNull
   public static List<PyRequirement> parse(@NotNull VirtualFile file) {
-    return parse(file, new HashSet<VirtualFile>());
+    return parse(loadText(file), file, new HashSet<>());
   }
 
   @NotNull
-  private static List<PyRequirement> parse(@NotNull VirtualFile file, @NotNull Set<VirtualFile> visited) {
-    if (!visited.contains(file)) {
-      visited.add(file);
-      final Document document = FileDocumentManager.getInstance().getDocument(file);
-      if (document != null) {
-        return parse(document.getText(), file, visited);
-      }
-    }
-    return Collections.emptyList();
-  }
-
-  @NotNull
-  public String getName() {
-    return myName;
-  }
-
-  @NotNull
-  private static List<PyRequirement> parse(@NotNull String s, @Nullable VirtualFile anchor, @NotNull Set<VirtualFile> visited) {
-    final Set<PyRequirement> result = new LinkedHashSet<PyRequirement>();
-    for (String line : StringUtil.splitByLines(s)) {
-      final String trimmed = line.trim();
-      if (!trimmed.isEmpty()) {
-        final PyRequirement req = fromString(line);
-        if (req != null) {
-          result.add(req);
-        }
-        else if (anchor != null) {
-          result.addAll(parseRecursiveRequirement(trimmed, anchor, visited));
-        }
-      }
-    }
-    return new ArrayList<PyRequirement>(result);
-  }
-
-  @NotNull
-  private static List<PyRequirement> parseRecursiveRequirement(@NotNull String trimmedLine, @NotNull VirtualFile anchor,
-                                                               @NotNull Set<VirtualFile> visited) {
-    final Matcher matcher = RECURSIVE_REQUIREMENT.matcher(trimmedLine);
-    if (matcher.matches()) {
-      final String fileName = FileUtil.toSystemIndependentName(matcher.group(1));
-      final VirtualFile dir = anchor.getParent();
-      if (dir != null) {
-        VirtualFile file = dir.findFileByRelativePath(fileName);
-        if (file == null) {
-          file = LocalFileSystem.getInstance().findFileByPath(fileName);
-        }
-        if (file != null) {
-          return parse(file, visited);
-        }
-      }
-    }
-    return Collections.emptyList();
+  private static List<PyRequirement> parse(@NotNull String text,
+                                           @Nullable VirtualFile containingFile,
+                                           @NotNull Set<VirtualFile> visitedFiles) {
+    return Arrays
+      .stream(StringUtil.splitByLines(text))
+      .map(String::trim)
+      .filter(line -> !line.isEmpty())
+      .map(PyRequirement::fromString)
+      .filter(req -> req != null)
+      .collect(Collectors.toCollection(LinkedHashSet::new))
+      .stream()
+      .collect(Collectors.toList());
   }
 
   @Nullable
-  private static PyRequirement parseEditableEgg(@NotNull String line) {
-    final Matcher editableEggMatcher = EDITABLE_EGG.matcher(line);
-    if (!editableEggMatcher.matches()) {
-      return null;
+  private static PyRequirement parseGithubArchiveUrl(@NotNull String line) {
+    final Matcher matcher = GITHUB_ARCHIVE_URL.matcher(line);
+
+    if (matcher.matches()) {
+      return new PyRequirement(matcher.group(ARCHIVE_NAME_GROUP), null, line, false);
     }
-    final boolean editable = editableEggMatcher.group(1) != null;
-    final String url = editableEggMatcher.group(2);
-    String egg = editableEggMatcher.group(4);
-    if (url == null) {
-      return null;
+
+    return null;
+  }
+
+  @Nullable
+  private static PyRequirement parseArchiveUrl(@NotNull String line) {
+    final Matcher matcher = ARCHIVE_URL.matcher(line);
+
+    if (matcher.matches()) {
+      final Pair<String, String> nameAndVersion = parseNameAndVersion(matcher.group(ARCHIVE_NAME_GROUP));
+
+      return new PyRequirement(nameAndVersion.getFirst(), nameAndVersion.getSecond(), line, false);
     }
-    if (egg == null) {
-      try {
-        final URI uri = new URI(url);
-        if (uri.getScheme() != null) {
-          String path = uri.getPath();
-          if (path != null) {
-            final String[] split = path.split("@", 2);
-            path = split[0];
-            final Matcher vcsPathMatcher = VCS_PATH.matcher(path);
-            if (!vcsPathMatcher.matches()) {
-              return null;
-            }
-            egg = vcsPathMatcher.group(1);
-            final String gitSuffix = ".git";
-            egg = StringUtil.trimEnd(egg, gitSuffix);
-          }
-        }
-      }
-      catch (URISyntaxException e) {
-        return null;
-      }
+
+    return null;
+  }
+
+  @Nullable
+  private static PyRequirement parseVcsProjectUrl(@NotNull String line) {
+    final Matcher vcsMatcher = VCS_PROJECT_URL.matcher(line);
+    if (vcsMatcher.matches()) {
+      return createVcsRequirement(line, vcsMatcher);
     }
-    if (egg == null) {
-      return null;
+
+    final Matcher gitMatcher = GIT_PROJECT_URL.matcher(line);
+    if (gitMatcher.matches()) {
+      return createVcsRequirement(line, gitMatcher);
     }
+
+    final Matcher bzrMatcher = BZR_PROJECT_URL.matcher(line);
+    if (bzrMatcher.matches()) {
+      return createVcsRequirement(line, bzrMatcher);
+    }
+
+    return null;
+  }
+
+  @NotNull
+  private static String loadText(@NotNull VirtualFile file) {
+    final Document document = FileDocumentManager.getInstance().getDocument(file);
+
+    return document == null ? "" : document.getText();
+  }
+
+  @NotNull
+  private static PyRequirement createVcsRequirement(@NotNull String line, @NotNull Matcher matcher) {
+    final boolean editable = matcher.group(EDITABLE_GROUP) != null;
+    final String path = matcher.group(PATH_GROUP);
+    final String egg = matcher.group(EGG_GROUP);
+
+    final String project = extractProject(dropTrunk(dropRevision(path)));
+    final Pair<String, String> nameAndVersion = parseNameAndVersion(egg == null ? StringUtil.trimEnd(project, ".git") : egg);
+
+    return new PyRequirement(nameAndVersion.getFirst(), nameAndVersion.getSecond(), line, editable);
+  }
+
+  @NotNull
+  private static String dropRevision(@NotNull String path) {
+    final int atIndex = path.lastIndexOf("@");
+
+    if (atIndex != -1) {
+      return path.substring(0, atIndex);
+    }
+
+    return path;
+  }
+
+  @NotNull
+  private static String dropTrunk(@NotNull String path) {
+    final String slashTrunk = "/trunk";
+
+    if (path.endsWith(slashTrunk)) {
+      return path.substring(0, path.length() - slashTrunk.length());
+    }
+
+    final String slashTrunkSlash = "/trunk/";
+
+    if (path.endsWith(slashTrunkSlash)) {
+      return path.substring(0, path.length() - slashTrunkSlash.length());
+    }
+
+    return path;
+  }
+
+  @NotNull
+  private static String extractProject(@NotNull String path) {
+    final int end = path.endsWith("/") ? path.length() - 1 : path.length();
+    final int slashIndex = path.lastIndexOf("/", end - 1);
+
+    if (slashIndex != -1) {
+      return path.substring(slashIndex + 1, end);
+    }
+
+    if (end != path.length()) {
+      return path.substring(0, end);
+    }
+
+    return path;
+  }
+
+  @NotNull
+  private static Pair<String, String> parseNameAndVersion(@NotNull String name) {
     boolean isName = true;
     final List<String> nameParts = new ArrayList<String>();
     final List<String> versionParts = new ArrayList<String>();
-    for (String part : StringUtil.split(egg, "-")) {
-      if (part.matches("[0-9].*") || "dev".equals(part)) {
+
+    for (String part : StringUtil.split(name, "-")) {
+      final boolean partStartsWithDigit = !part.isEmpty() && Character.isDigit(part.charAt(0));
+
+      if (partStartsWithDigit || "dev".equals(part)) {
         isName = false;
       }
+
       if (isName) {
         nameParts.add(part);
       }
@@ -320,9 +364,18 @@ public class PyRequirement {
         versionParts.add(part);
       }
     }
-    final String name = normalizeName(StringUtil.join(nameParts, "-"));
-    final String version = !versionParts.isEmpty() ? normalizeVersion(StringUtil.join(versionParts, "-")) : null;
-    return new PyRequirement(name, version, url, editable);
+
+    return Pair.create(normalizeNameParts(nameParts), normalizeVersionParts(versionParts));
+  }
+
+  @NotNull
+  private static String normalizeNameParts(@NotNull List<String> nameParts) {
+    return normalizeName(StringUtil.join(nameParts, "-"));
+  }
+
+  @Nullable
+  private static String normalizeVersionParts(@NotNull List<String> versionParts) {
+    return versionParts.isEmpty() ? null : normalizeVersion(StringUtil.join(versionParts, "-"));
   }
 
   @NotNull
@@ -332,6 +385,6 @@ public class PyRequirement {
 
   @NotNull
   private static String normalizeVersion(@NotNull String s) {
-    return s.replace("_", "-").replaceAll("-?py[0-9\\.]+", "");
+    return s.replace("_", "-").replaceAll("-?py[\\d\\.]+", "");
   }
 }
diff --git a/python/src/com/jetbrains/python/packaging/PyPackageManagerImpl.java b/python/src/com/jetbrains/python/packaging/PyPackageManagerImpl.java
index 0de50fe83f5d..dcceb1ad8342 100644
--- a/python/src/com/jetbrains/python/packaging/PyPackageManagerImpl.java
+++ b/python/src/com/jetbrains/python/packaging/PyPackageManagerImpl.java
@@ -207,7 +207,7 @@ public class PyPackageManagerImpl extends PyPackageManager {
     }
     args.addAll(extraArgs);
     for (PyRequirement req : requirements) {
-      args.addAll(req.toOptions());
+      args.add(req.toOptions());
     }
     try {
       getHelperResult(PACKAGING_TOOL, args, !useUserSite, true, null);
@@ -221,7 +221,7 @@ public class PyPackageManagerImpl extends PyPackageManager {
       }
       simplifiedArgs.addAll(extraArgs);
       for (PyRequirement req : requirements) {
-        simplifiedArgs.addAll(req.toOptions());
+        simplifiedArgs.add(req.toOptions());
       }
       throw new PyExecutionException(e.getMessage(), "pip", simplifiedArgs, e.getStdout(), e.getStderr(), e.getExitCode(), e.getFixes());
     }