diff --git a/test/test_orm.py b/test/test_orm.py
new file mode 100644
index 0000000..10aae2c
--- /dev/null
+++ b/test/test_orm.py
@@ -0,0 +1,55 @@
+import pytest
+import sqlalchemy as sa
+from types import MethodType
+from sqlalchemy import Column, Integer, Unicode
+from sqlalchemy.orm import declarative_base, sessionmaker
+from sqlalchemy.testing.fixtures import TablesTest, config
+
+
+class TestDirectories(TablesTest):
+    __backend__ = True
+
+    def prepare_table(self, engine):
+        base = declarative_base()
+
+        class Table(base):
+            __tablename__ = "dir/test"
+            id = Column(Integer, primary_key=True)
+            text = Column(Unicode)
+
+        base.metadata.create_all(engine)
+        session = sessionmaker(bind=engine)()
+        session.add(Table(id=2, text="foo"))
+        session.commit()
+        return base, Table, session
+
+    def try_update(self, session, Table):
+        row = session.query(Table).first()
+        row.text = "bar"
+        session.commit()
+        return row
+
+    def drop_table(self, base, engine):
+        base.metadata.drop_all(engine)
+
+    def bind_old_method_to_dialect(self, dialect):
+        def _handle_column_name(self, variable):
+            return variable
+
+        dialect._handle_column_name = MethodType(_handle_column_name, dialect)
+
+    def test_directories(self):
+        engine_good = sa.create_engine(config.db_url)
+        base, Table, session = self.prepare_table(engine_good)
+        row = self.try_update(session, Table)
+        assert row.id == 2
+        assert row.text == "bar"
+        self.drop_table(base, engine_good)
+
+        engine_bad = sa.create_engine(config.db_url)
+        self.bind_old_method_to_dialect(engine_bad.dialect)
+        base, Table, session = self.prepare_table(engine_bad)
+        with pytest.raises(Exception) as excinfo:
+            self.try_update(session, Table)
+        assert "Unknown name: $dir" in str(excinfo.value)
+        self.drop_table(base, engine_bad)
diff --git a/ydb_sqlalchemy/sqlalchemy/__init__.py b/ydb_sqlalchemy/sqlalchemy/__init__.py
index 33321b8..e20a2e3 100644
--- a/ydb_sqlalchemy/sqlalchemy/__init__.py
+++ b/ydb_sqlalchemy/sqlalchemy/__init__.py
@@ -584,7 +584,13 @@ class YqlDialect(StrCompileDialect):
     def import_dbapi(cls: Any):
         return dbapi.YdbDBApi()
 
-    def __init__(self, json_serializer=None, json_deserializer=None, _add_declare_for_yql_stmt_vars=False, **kwargs):
+    def __init__(
+        self,
+        json_serializer=None,
+        json_deserializer=None,
+        _add_declare_for_yql_stmt_vars=False,
+        **kwargs,
+    ):
         super().__init__(**kwargs)
 
         self._json_deserializer = json_deserializer
@@ -673,6 +679,9 @@ def do_rollback(self, dbapi_connection: dbapi.Connection) -> None:
     def do_commit(self, dbapi_connection: dbapi.Connection) -> None:
         dbapi_connection.commit()
 
+    def _handle_column_name(self, variable):
+        return "`" + variable + "`"
+
     def _format_variables(
         self,
         statement: str,
@@ -694,7 +703,9 @@ def _format_variables(
                 variable_names = set(parameters.keys())
                 formatted_parameters = {f"${k}": v for k, v in parameters.items()}
 
-            formatted_variable_names = {variable_name: f"${variable_name}" for variable_name in variable_names}
+            formatted_variable_names = {
+                variable_name: f"${self._handle_column_name(variable_name)}" for variable_name in variable_names
+            }
             formatted_statement = formatted_statement % formatted_variable_names
 
         formatted_statement = formatted_statement.replace("%%", "%")
@@ -702,7 +713,10 @@ def _format_variables(
 
     def _add_declare_for_yql_stmt_vars_impl(self, statement, parameters_types):
         declarations = "\n".join(
-            [f"DECLARE {param_name} as {str(param_type)};" for param_name, param_type in parameters_types.items()]
+            [
+                f"DECLARE $`{param_name[1:]}` as {str(param_type)};"
+                for param_name, param_type in parameters_types.items()
+            ]
         )
         return f"{declarations}\n{statement}"