diff --git a/python/src/com/jetbrains/python/actions/RemoveUnnecessaryBackslashQuickFix.java b/python/src/com/jetbrains/python/actions/RemoveUnnecessaryBackslashQuickFix.java
index 813e070e3fdf..f2cf57da1883 100644
--- a/python/src/com/jetbrains/python/actions/RemoveUnnecessaryBackslashQuickFix.java
+++ b/python/src/com/jetbrains/python/actions/RemoveUnnecessaryBackslashQuickFix.java
@@ -8,6 +8,7 @@ import com.intellij.psi.PsiWhiteSpace;
 import com.intellij.psi.util.PsiTreeUtil;
 import com.intellij.util.containers.Stack;
 import com.jetbrains.python.PyBundle;
+import com.jetbrains.python.editor.PythonEnterHandler;
 import com.jetbrains.python.psi.*;
 import org.jetbrains.annotations.NotNull;
 
@@ -30,13 +31,12 @@ public class RemoveUnnecessaryBackslashQuickFix implements LocalQuickFix {
   public void applyFix(@NotNull Project project, @NotNull ProblemDescriptor descriptor) {
     PsiElement problemElement = descriptor.getPsiElement();
     if (problemElement != null) {
-      PyElement parent = PsiTreeUtil.getParentOfType(problemElement, PySequenceExpression.class, PyDictLiteralExpression.class,
-                                                     PyParenthesizedExpression.class, PyArgumentList.class, PyParameterList.class);
+      PsiElement parent = PsiTreeUtil.getParentOfType(problemElement, PythonEnterHandler.IMPLICIT_WRAP_CLASSES);
       removeBackSlash(parent);
     }
   }
   
-  private static void removeBackSlash(PyElement parent) {
+  private static void removeBackSlash(PsiElement parent) {
     if (parent != null) {
       Stack<PsiElement> stack = new Stack<PsiElement>();
       if (parent instanceof PyParenthesizedExpression)
diff --git a/python/src/com/jetbrains/python/editor/PythonEnterHandler.java b/python/src/com/jetbrains/python/editor/PythonEnterHandler.java
index 424218071db3..4521a6d0b31e 100644
--- a/python/src/com/jetbrains/python/editor/PythonEnterHandler.java
+++ b/python/src/com/jetbrains/python/editor/PythonEnterHandler.java
@@ -29,7 +29,15 @@ import org.jetbrains.annotations.Nullable;
 public class PythonEnterHandler extends EnterHandlerDelegateAdapter {
   private boolean needPostProcess = false;
 
-  private static final Class[] IMPLICIT_WRAP_CLASSES = new Class[]{
+  public static final Class[] IMPLICIT_WRAP_CLASSES = new Class[] {
+    PySequenceExpression.class,
+    PyDictLiteralExpression.class,
+    PyParenthesizedExpression.class,
+    PyArgumentList.class,
+    PyParameterList.class
+  };
+
+  private static final Class[] WRAPPABLE_CLASSES = new Class[]{
     PsiComment.class,
     PyParenthesizedExpression.class,
     PyListCompExpression.class,
@@ -116,13 +124,11 @@ public class PythonEnterHandler extends EnterHandlerDelegateAdapter {
       final boolean isEscapedBackslash = "\\".equals(doc.getText(TextRange.create(offset-2, offset - 1))) && nextIsBackslash;
       if (nextIsBackslash && !isEscapedQuote && !isEscapedBackslash) return Result.Continue;
 
-      final PsiElement parent = string.getParent();
       final StringBuilder replacementString = new StringBuilder();
       needPostProcess = true;
-      if (parent instanceof PySequenceExpression || parent instanceof PyParenthesizedExpression ||
-          parent instanceof PyBinaryExpression || parent instanceof PyKeyValueExpression ||
-          parent instanceof PyNamedParameter || parent instanceof PyArgumentList) {
-        replacementString.append(quote + pref + quote);
+
+      if (PsiTreeUtil.getParentOfType(string, IMPLICIT_WRAP_CLASSES) != null) {
+        replacementString.append(quote).append(pref).append(quote);
         doc.insertString(offset, replacementString);
         caretOffset.set(caretOffset.get() + 1);
         return Result.Continue;
@@ -132,7 +138,7 @@ public class PythonEnterHandler extends EnterHandlerDelegateAdapter {
           replacementString.append(quote);
           caretOffset.set(caretOffset.get() + 1);
         }
-        replacementString.append(quote + " \\" + pref);
+        replacementString.append(quote).append(" \\").append(pref);
         if (!isEscapedQuote)
           replacementString.append(quote);
         doc.insertString(offset, replacementString.toString());
@@ -187,7 +193,7 @@ public class PythonEnterHandler extends EnterHandlerDelegateAdapter {
     PsiElement wrappableAfter = findWrappable(file, offset, false);
     if (!(wrappableBefore instanceof PsiComment)) {
       while (wrappableBefore != null) {
-        PsiElement next = PsiTreeUtil.getParentOfType(wrappableBefore, IMPLICIT_WRAP_CLASSES);
+        PsiElement next = PsiTreeUtil.getParentOfType(wrappableBefore, WRAPPABLE_CLASSES);
         if (next == null) {
           break;
         }
@@ -196,7 +202,7 @@ public class PythonEnterHandler extends EnterHandlerDelegateAdapter {
     }
     if (!(wrappableAfter instanceof PsiComment)) {
       while (wrappableAfter != null) {
-        PsiElement next = PsiTreeUtil.getParentOfType(wrappableAfter, IMPLICIT_WRAP_CLASSES);
+        PsiElement next = PsiTreeUtil.getParentOfType(wrappableAfter, WRAPPABLE_CLASSES);
         if (next == null) {
           break;
         }
@@ -234,8 +240,8 @@ public class PythonEnterHandler extends EnterHandlerDelegateAdapter {
   @Nullable
   private static PsiElement findWrappable(PsiFile file, int offset, boolean before) {
     PsiElement wrappable = before
-                                 ? findBeforeCaret(file, offset, IMPLICIT_WRAP_CLASSES)
-                                 : findAfterCaret(file, offset, IMPLICIT_WRAP_CLASSES);
+                                 ? findBeforeCaret(file, offset, WRAPPABLE_CLASSES)
+                                 : findAfterCaret(file, offset, WRAPPABLE_CLASSES);
     if (wrappable == null) {
       PsiElement emptyTuple = before
                               ? findBeforeCaret(file, offset, PyTupleExpression.class)
diff --git a/python/testSrc/com/jetbrains/python/PyEditingTest.java b/python/testSrc/com/jetbrains/python/PyEditingTest.java
index 716a6ce1f71d..23403a3e55b9 100644
--- a/python/testSrc/com/jetbrains/python/PyEditingTest.java
+++ b/python/testSrc/com/jetbrains/python/PyEditingTest.java
@@ -111,6 +111,12 @@ public class PyEditingTest extends PyTestCase {
                                             "    r'string'");
   }
 
+  public void testEnterInStringFormatting() {  // PY-7039
+    doTestEnter("foo += \"fooba<caret>r\" % foo\n",
+                "foo += \"fooba\" \\\n" +
+                "       \"r\" % foo\n");
+  }
+
   public void testEnterInStatement() {
     doTestEnter("if a <caret>and b: pass", "if a \\\nand b: pass");
   }