diff --git a/src/com/mirantis/mk/Openstack.groovy b/src/com/mirantis/mk/Openstack.groovy
index 59bbeb7..0e02f2a 100644
--- a/src/com/mirantis/mk/Openstack.groovy
+++ b/src/com/mirantis/mk/Openstack.groovy
@@ -22,9 +22,9 @@
  * @param version     Version of the OpenStack clients
  */
 
-def setupOpenstackVirtualenv(path, version = 'latest') {
-    def python = new com.mirantis.mk.Python()
-    python.setupDocutilsVirtualenv(path)
+def setupOpenstackVirtualenv(path, version = 'latest', python="python2") {
+    def pythonLib = new com.mirantis.mk.Python()
+    pythonLib.setupDocutilsVirtualenv(path)
 
     def openstack_kilo_packages = [
         //XXX: hack to fix https://bugs.launchpad.net/ubuntu/+source/python-pip/+bug/1635463
@@ -73,7 +73,7 @@
     } else {
         requirements = openstack_latest_packages
     }
-    python.setupVirtualenv(path, 'python2', requirements, null, true)
+    pythonLib.setupVirtualenv(path, python, requirements, null, true)
 }
 
 /**
diff --git a/src/com/mirantis/mk/Python.groovy b/src/com/mirantis/mk/Python.groovy
index d82f68a..9d07d47 100644
--- a/src/com/mirantis/mk/Python.groovy
+++ b/src/com/mirantis/mk/Python.groovy
@@ -39,7 +39,8 @@
                 pipPackage = "\"pip<=19.3.1\""
                 common.infoMsg("Pinning pip package due to end of life of Python2 to ${pipPackage} version.")
             }
-            runVirtualenvCommand(path, "pip install -U setuptools ${pipPackage}")
+            // NOTE(vsaienko): pin setuptools explicitly for latest version that works with python2
+            runVirtualenvCommand(path, "pip install -U \"setuptools<45.0.0\" ${pipPackage}")
         } catch (Exception e) {
             common.warningMsg("Setuptools and pip cannot be updated, you might be offline but OFFLINE_DEPLOYMENT global property not initialized!")
         }
@@ -156,11 +157,11 @@
  *
  * @param path Path where virtualenv is created
  */
-def setupDocutilsVirtualenv(path) {
+def setupDocutilsVirtualenv(path, python="python2") {
     requirements = [
         'docutils',
     ]
-    setupVirtualenv(path, 'python2', requirements)
+    setupVirtualenv(path, python, requirements)
 }