diff --git a/app/models/epp/domain.rb b/app/models/epp/domain.rb
index c50203dd9..6eab37079 100644
--- a/app/models/epp/domain.rb
+++ b/app/models/epp/domain.rb
@@ -475,13 +475,13 @@ class Epp::Domain < Domain
       self.up_date = Time.zone.now
     end
 
-    same_registrant_as_current = true
+    registrant_verification_needed = false
     # registrant block may not be present, so we need this to rule out false positives
     if frame.css('registrant').text.present?
-      same_registrant_as_current = (registrant.code == frame.css('registrant').text)
+      registrant_verification_needed = (registrant.code != frame.css('registrant').text)
     end
 
-    if !same_registrant_as_current && disputed?
+    if registrant_verification_needed && disputed?
       disputed_pw = frame.css('reserved > pw').text
       if disputed_pw.blank?
         add_epp_error('2304', nil, nil, 'Required parameter missing; reserved' \
@@ -490,6 +490,7 @@ class Epp::Domain < Domain
         dispute = Dispute.active.find_by(domain_name: name, password: disputed_pw)
         if dispute
           Dispute.close_by_domain(name)
+          registrant_verification_needed = false # Prevent asking current registrant confirmation
         else
           add_epp_error('2202', nil, nil, 'Invalid authorization information; '\
           'invalid reserved>pw value')
@@ -500,7 +501,7 @@ class Epp::Domain < Domain
     unverified_registrant_params = frame.css('registrant').present? &&
                                    frame.css('registrant').attr('verified').to_s.downcase != 'yes'
 
-    if !same_registrant_as_current && errors.empty? && verify &&
+    if registrant_verification_needed && errors.empty? && verify &&
        Setting.request_confrimation_on_registrant_change_enabled &&
        unverified_registrant_params
       registrant_verification_asked!(frame.to_s, current_user.id) unless disputed?
diff --git a/test/fixtures/disputes.yml b/test/fixtures/disputes.yml
index a999fa0a1..222897ecc 100644
--- a/test/fixtures/disputes.yml
+++ b/test/fixtures/disputes.yml
@@ -9,7 +9,7 @@ future:
   starts_at: <%= Date.parse '2010-10-05' %>
   expires_at: <%= Date.parse '2013-10-05' %>
 expired:
-  domain_name: expired-dispute.test
+  domain_name: shop.test
   password: active-001
   starts_at: <%= Date.parse '2010-07-05' %>
   expires_at: <%= Date.parse '2013-07-05' %>
diff --git a/test/integration/epp/domain/update/base_test.rb b/test/integration/epp/domain/update/base_test.rb
index b645df95a..0e435030a 100644
--- a/test/integration/epp/domain/update/base_test.rb
+++ b/test/integration/epp/domain/update/base_test.rb
@@ -194,6 +194,49 @@ class EppDomainUpdateBaseTest < EppTestCase
     assert_no_emails
   end
 
+  def test_skips_verification_when_registrant_changed_with_dispute_password
+    Setting.request_confrimation_on_registrant_change_enabled = true
+    dispute = disputes(:expired)
+    dispute.update!(starts_at: Time.zone.now, expires_at: Time.zone.now + 5.days, closed: nil)
+    new_registrant = contacts(:william)
+
+    assert @domain.disputed?
+
+    request_xml = <<-XML
+      <?xml version="1.0" encoding="UTF-8" standalone="no"?>
+      <epp xmlns="https://epp.tld.ee/schema/epp-ee-1.0.xsd">
+        <command>
+          <update>
+            <domain:update xmlns:domain="https://epp.tld.ee/schema/domain-eis-1.0.xsd">
+              <domain:name>#{@domain.name}</domain:name>
+                <domain:chg>
+                  <domain:registrant>#{new_registrant.code}</domain:registrant>
+                </domain:chg>
+            </domain:update>
+          </update>
+          <extension>
+            <eis:extdata xmlns:eis="https://epp.tld.ee/schema/eis-1.0.xsd">
+              <eis:legalDocument type="pdf">#{'test' * 2000}</eis:legalDocument>
+              <eis:reserved>
+                <eis:pw>#{dispute.password}</eis:pw>
+              </eis:reserved>
+            </eis:extdata>
+          </extension>
+        </command>
+      </epp>
+    XML
+
+    post epp_update_path, params: { frame: request_xml },
+                          headers: { 'HTTP_COOKIE' => 'session=api_bestnames' }
+    @domain.reload
+
+    assert_epp_response :completed_successfully
+    assert new_registrant, @domain.registrant
+    assert_not @domain.registrant_verification_asked?
+    assert_not @domain.disputed?
+    assert_no_emails
+  end
+
   def test_skips_verification_when_disabled
     Setting.request_confrimation_on_registrant_change_enabled = false
     new_registrant = contacts(:william).becomes(Registrant)