diff --git a/functional/tests/identity/v2/test_catalog.py b/functional/tests/identity/v2/test_catalog.py
index 3a1f7e112a..7b5c0f971c 100644
--- a/functional/tests/identity/v2/test_catalog.py
+++ b/functional/tests/identity/v2/test_catalog.py
@@ -10,9 +10,12 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+import testtools
+
 from functional.tests.identity.v2 import test_identity
 
 
+@testtools.skip('bug/1539780')
 class CatalogTests(test_identity.IdentityTests):
 
     def test_catalog_list(self):
diff --git a/functional/tests/identity/v2/test_ec2_credentials.py b/functional/tests/identity/v2/test_ec2_credentials.py
index 86702c0c6f..910229dbe7 100644
--- a/functional/tests/identity/v2/test_ec2_credentials.py
+++ b/functional/tests/identity/v2/test_ec2_credentials.py
@@ -10,9 +10,12 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+import testtools
+
 from functional.tests.identity.v2 import test_identity
 
 
+@testtools.skip('bug/1539780')
 class EC2CredentialsTests(test_identity.IdentityTests):
 
     def test_ec2_credentials_create(self):
diff --git a/functional/tests/identity/v2/test_endpoint.py b/functional/tests/identity/v2/test_endpoint.py
index 0aed3220c8..aac61263c2 100644
--- a/functional/tests/identity/v2/test_endpoint.py
+++ b/functional/tests/identity/v2/test_endpoint.py
@@ -10,9 +10,12 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+import testtools
+
 from functional.tests.identity.v2 import test_identity
 
 
+@testtools.skip('bug/1539780')
 class EndpointTests(test_identity.IdentityTests):
 
     def test_endpoint_create(self):
diff --git a/functional/tests/identity/v2/test_project.py b/functional/tests/identity/v2/test_project.py
index 3a5e8e81a9..52c4639e54 100644
--- a/functional/tests/identity/v2/test_project.py
+++ b/functional/tests/identity/v2/test_project.py
@@ -10,11 +10,14 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+import testtools
+
 from tempest_lib.common.utils import data_utils
 
 from functional.tests.identity.v2 import test_identity
 
 
+@testtools.skip('bug/1539780')
 class ProjectTests(test_identity.IdentityTests):
 
     def test_project_create(self):
diff --git a/functional/tests/identity/v2/test_role.py b/functional/tests/identity/v2/test_role.py
index e542a5fbdd..c0eb5fc7d5 100644
--- a/functional/tests/identity/v2/test_role.py
+++ b/functional/tests/identity/v2/test_role.py
@@ -10,9 +10,12 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+import testtools
+
 from functional.tests.identity.v2 import test_identity
 
 
+@testtools.skip('bug/1539780')
 class RoleTests(test_identity.IdentityTests):
 
     def test_role_create(self):
diff --git a/functional/tests/identity/v2/test_service.py b/functional/tests/identity/v2/test_service.py
index bd982be1bd..716966fc47 100644
--- a/functional/tests/identity/v2/test_service.py
+++ b/functional/tests/identity/v2/test_service.py
@@ -10,9 +10,12 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+import testtools
+
 from functional.tests.identity.v2 import test_identity
 
 
+@testtools.skip('bug/1539780')
 class ServiceTests(test_identity.IdentityTests):
 
     def test_service_create(self):
diff --git a/functional/tests/identity/v2/test_token.py b/functional/tests/identity/v2/test_token.py
index bac2b0ac9c..1bd7baba4f 100644
--- a/functional/tests/identity/v2/test_token.py
+++ b/functional/tests/identity/v2/test_token.py
@@ -10,9 +10,12 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+import testtools
+
 from functional.tests.identity.v2 import test_identity
 
 
+@testtools.skip('bug/1539780')
 class TokenTests(test_identity.IdentityTests):
 
     def test_token_issue(self):
diff --git a/functional/tests/identity/v2/test_user.py b/functional/tests/identity/v2/test_user.py
index 41895e7ecc..5cd16dbebd 100644
--- a/functional/tests/identity/v2/test_user.py
+++ b/functional/tests/identity/v2/test_user.py
@@ -10,12 +10,15 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
+import testtools
+
 from tempest_lib.common.utils import data_utils
 
 from functional.common import exceptions
 from functional.tests.identity.v2 import test_identity
 
 
+@testtools.skip('bug/1539780')
 class UserTests(test_identity.IdentityTests):
 
     def test_user_create(self):
diff --git a/functional/tests/identity/v3/test_identity.py b/functional/tests/identity/v3/test_identity.py
index 3164e8fbb5..6aeddccc03 100644
--- a/functional/tests/identity/v3/test_identity.py
+++ b/functional/tests/identity/v3/test_identity.py
@@ -10,8 +10,6 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
-import os
-
 from tempest_lib.common.utils import data_utils
 
 from functional.common import test
@@ -49,13 +47,6 @@ class IdentityTests(test.TestCase):
         if hasattr(super(IdentityTests, cls), 'setUpClass'):
             super(IdentityTests, cls).setUpClass()
 
-        # prepare v3 env
-        auth_url = os.environ.get('OS_AUTH_URL')
-        auth_url = auth_url.replace('v2.0', 'v3')
-        os.environ['OS_AUTH_URL'] = auth_url
-        os.environ['OS_IDENTITY_API_VERSION'] = '3'
-        os.environ['OS_AUTH_TYPE'] = 'v3password'
-
         # create dummy domain
         cls.domain_name = data_utils.rand_name('TestDomain')
         cls.domain_description = data_utils.rand_name('description')