diff --git a/platform/vcs-impl/testSrc/com/intellij/openapi/vcs/Executor.java b/platform/vcs-impl/testSrc/com/intellij/openapi/vcs/Executor.java
index 29c4bea47ec2..0df56d1fed5d 100644
--- a/platform/vcs-impl/testSrc/com/intellij/openapi/vcs/Executor.java
+++ b/platform/vcs-impl/testSrc/com/intellij/openapi/vcs/Executor.java
@@ -205,7 +205,7 @@ public class Executor {
     return stdout;
   }
 
-  protected static List<String> splitCommandInParameters(String command) {
+  public static List<String> splitCommandInParameters(String command) {
     List<String> split = new ArrayList<String>();
 
     boolean insideParam = false;
@@ -263,7 +263,7 @@ public class Executor {
                                                                                " executable." : ""));
   }
 
-  protected static String findEnvValue(String programNameForLog, Collection<String> envs) {
+  public static String findEnvValue(String programNameForLog, Collection<String> envs) {
     for (String env : envs) {
       String val = System.getenv(env);
       if (val != null && new File(val).canExecute()) {
@@ -274,7 +274,7 @@ public class Executor {
     return null;
   }
 
-  protected static void debug(String msg) {
+  public static void debug(String msg) {
     if (!StringUtil.isEmptyOrSpaces(msg)) {
       LOG.info(msg);
     }
diff --git a/plugins/hg4idea/src/org/zmlx/hg4idea/execution/ShellCommand.java b/plugins/hg4idea/src/org/zmlx/hg4idea/execution/ShellCommand.java
index ccfc562274cc..7e15327cf642 100644
--- a/plugins/hg4idea/src/org/zmlx/hg4idea/execution/ShellCommand.java
+++ b/plugins/hg4idea/src/org/zmlx/hg4idea/execution/ShellCommand.java
@@ -14,7 +14,11 @@ package org.zmlx.hg4idea.execution;
 
 import com.intellij.execution.ExecutionException;
 import com.intellij.execution.configurations.GeneralCommandLine;
-import com.intellij.execution.process.*;
+import com.intellij.execution.process.OSProcessHandler;
+import com.intellij.execution.process.ProcessEvent;
+import com.intellij.execution.process.ProcessListener;
+import com.intellij.execution.process.ProcessOutputTypes;
+import com.intellij.openapi.application.ApplicationManager;
 import com.intellij.openapi.progress.ProgressIndicator;
 import com.intellij.openapi.progress.ProgressManager;
 import com.intellij.openapi.util.Key;
@@ -44,6 +48,10 @@ public final class ShellCommand {
     if (charset != null) {
       myCommandLine.setCharset(charset);
     }
+    if (ApplicationManager.getApplication().isUnitTestMode()) {
+      //ignore all hg config files except current repository config
+      myCommandLine.getEnvironment().put("HGRCPATH", "");
+    }
   }
 
   @NotNull
diff --git a/plugins/hg4idea/testData/repo/dot_hg/hgrc b/plugins/hg4idea/testData/repo/dot_hg/hgrc
index 88df1f2698d0..0c817f1bf6a4 100644
--- a/plugins/hg4idea/testData/repo/dot_hg/hgrc
+++ b/plugins/hg4idea/testData/repo/dot_hg/hgrc
@@ -3,6 +3,3 @@ username = John Doe <John.Doe@example.com>
 
 [merge-patterns]
 ** = internal:merge
-
-[extensions]
-sparse=!
diff --git a/plugins/hg4idea/testSrc/hg4idea/test/HgExecutor.java b/plugins/hg4idea/testSrc/hg4idea/test/HgExecutor.java
index 359c850362c9..86cb54608824 100644
--- a/plugins/hg4idea/testSrc/hg4idea/test/HgExecutor.java
+++ b/plugins/hg4idea/testSrc/hg4idea/test/HgExecutor.java
@@ -18,14 +18,17 @@ package hg4idea.test;
 import com.intellij.openapi.application.PluginPathManager;
 import com.intellij.openapi.util.SystemInfo;
 import com.intellij.openapi.util.io.FileUtil;
-import com.intellij.openapi.vcs.Executor;
 import org.jetbrains.annotations.NotNull;
+import org.zmlx.hg4idea.execution.HgCommandResult;
+import org.zmlx.hg4idea.execution.ShellCommand;
 
 import java.io.File;
-import java.util.Arrays;
+import java.util.Collections;
 import java.util.List;
 
-public class HgExecutor extends Executor {
+import static com.intellij.openapi.vcs.Executor.*;
+
+public class HgExecutor {
 
   private static final String HG_EXECUTABLE_ENV = "IDEA_TEST_HG_EXECUTABLE";
 
@@ -35,7 +38,7 @@ public class HgExecutor extends Executor {
     final String programName = "hg";
     final String unixExec = "hg";
     final String winExec = "hg.exe";
-    String exec = findEnvValue(programName, Arrays.asList(HG_EXECUTABLE_ENV));
+    String exec = findEnvValue(programName, Collections.singletonList(HG_EXECUTABLE_ENV));
     if (exec != null) {
       return exec;
     }
@@ -57,15 +60,26 @@ public class HgExecutor extends Executor {
     return null;
   }
 
-  public static String hg(String command) {
+  public static String hg(@NotNull String command) {
     return hg(command, false);
   }
 
-  public static String hg(String command, boolean ignoreNonZeroExitCode) {
+  public static String hg(@NotNull String command, boolean ignoreNonZeroExitCode) {
     List<String> split = splitCommandInParameters(command);
     split.add(0, HG_EXECUTABLE);
     debug("hg " + command);
-    return run(ourCurrentDir(), split, ignoreNonZeroExitCode);
+    HgCommandResult result;
+    try {
+      result = new ShellCommand(split, pwd(), null).execute(false);
+    }
+    catch (Exception e) {
+      throw new RuntimeException(e);
+    }
+    int exitValue = result.getExitValue();
+    if (!ignoreNonZeroExitCode && exitValue != 0) {
+      throw new RuntimeException(result.getRawError());
+    }
+    return result.getRawOutput();
   }
 
   public static void updateProject() {
diff --git a/plugins/hg4idea/testSrc/hg4idea/test/diff/HgGetDiffForDirTest.java b/plugins/hg4idea/testSrc/hg4idea/test/diff/HgGetDiffForDirTest.java
index 7902e525d093..37db5ac0ffab 100644
--- a/plugins/hg4idea/testSrc/hg4idea/test/diff/HgGetDiffForDirTest.java
+++ b/plugins/hg4idea/testSrc/hg4idea/test/diff/HgGetDiffForDirTest.java
@@ -27,11 +27,9 @@ import org.zmlx.hg4idea.util.HgUtil;
 import java.io.File;
 import java.util.List;
 
-import static hg4idea.test.HgExecutor.*;
+import static com.intellij.openapi.vcs.Executor.*;
+import static hg4idea.test.HgExecutor.hg;
 
-/**
- * @author Nadya Zabrodina
- */
 public class HgGetDiffForDirTest extends HgPlatformTest {
 
   private static final String SHORT_TEMPLATE_REVISION = "{rev}:{node|short}";