diff --git a/pkg/morph/policy/policy_contract_storage.go b/pkg/morph/policy/policy_contract_storage.go
index 37da1a7..a6e6585 100644
--- a/pkg/morph/policy/policy_contract_storage.go
+++ b/pkg/morph/policy/policy_contract_storage.go
@@ -1,6 +1,7 @@
 package policy
 
 import (
+	"crypto/sha256"
 	"errors"
 	"fmt"
 	"math/big"
@@ -49,7 +50,8 @@ func transformNameIfContainer(target engine.Target) (name string) {
 	if target.Type == engine.Container {
 		// Container name can be too long and, thus, cannot be
 		// used as a key name for policy-contract storage.
-		name = base58.FastBase58Encoding([]byte(target.Name))
+		encoded := sha256.Sum224([]byte(target.Name))
+		name = base58.FastBase58Encoding(encoded[:])
 	}
 	return
 }
diff --git a/pkg/morph/policy/policy_contract_storage_test.go b/pkg/morph/policy/policy_contract_storage_test.go
new file mode 100644
index 0000000..907574e
--- /dev/null
+++ b/pkg/morph/policy/policy_contract_storage_test.go
@@ -0,0 +1,93 @@
+package policy
+
+import (
+	"fmt"
+	"testing"
+
+	"git.frostfs.info/TrueCloudLab/policy-engine/pkg/engine"
+	"git.frostfs.info/TrueCloudLab/policy-engine/schema/native"
+	"github.com/stretchr/testify/require"
+)
+
+func TestTransformNameIfContainer(t *testing.T) {
+	for _, test := range []struct {
+		Name   string
+		Target engine.Target
+	}{
+		{
+			Name:   "check namespace",
+			Target: engine.NamespaceTarget("namespace1"),
+		},
+		{
+			Name: "check ResourceFormatNamespaceObjects",
+			Target: engine.ContainerTarget(
+				fmt.Sprintf(native.ResourceFormatNamespaceObjects,
+					"BzQw5HH3feoxFDD5tCT87Y1726qzgLfxEE7wgtoRzB3R")),
+		},
+		{
+			Name: "check ResourceFormatNamespaceContainerObjects",
+			Target: engine.ContainerTarget(
+				fmt.Sprintf(native.ResourceFormatNamespaceContainerObjects,
+					"BzQw5HH3feoxFDD5tCT87Y1726qzgLfxEE7wgtoRzB3R", "AeZa5HH3feoxFDD5tCT87Y1726qzgLfxEE7wgtoRzB3R")),
+		},
+		{
+			Name: "check ResourceFormatNamespaceContainerObject",
+			Target: engine.ContainerTarget(
+				fmt.Sprintf(native.ResourceFormatNamespaceContainerObject,
+					"BzQw5HH3feoxFDD5tCT87Y1726qzgLfxEE7wgtoRzB3R", "AeZa5HH3feoxFDD5tCT87Y1726qzgLfxEE7wgtoRzB3R", "LxGy5HH3feoxFDD5tCT87Y1726qzgLfxEE7wgtoRzB3R")),
+		},
+		{
+			Name:   "check ResourceFormatRootObjects",
+			Target: engine.ContainerTarget(native.ResourceFormatRootObjects),
+		},
+		{
+			Name: "check ResourceFormatRootContainerObjects",
+			Target: engine.ContainerTarget(
+				fmt.Sprintf(native.ResourceFormatRootContainerObjects,
+					"BzQw5HH3feoxFDD5tCT87Y1726qzgLfxEE7wgtoRzB3R")),
+		},
+		{
+			Name: "check ResourceFormatRootContainerObject",
+			Target: engine.ContainerTarget(
+				fmt.Sprintf(native.ResourceFormatRootContainerObject,
+					"BzQw5HH3feoxFDD5tCT87Y1726qzgLfxEE7wgtoRzB3R", "AeZa5HH3feoxFDD5tCT87Y1726qzgLfxEE7wgtoRzB3R")),
+		},
+		{
+			Name:   "check ResourceFormatAllObjects",
+			Target: engine.ContainerTarget(native.ResourceFormatAllObjects),
+		},
+		{
+			Name: "check ResourceFormatNamespaceContainer",
+			Target: engine.ContainerTarget(
+				fmt.Sprintf(native.ResourceFormatNamespaceContainer,
+					"BzQw5HH3feoxFDD5tCT87Y1726qzgLfxEE7wgtoRzB3R", "AeZa5HH3feoxFDD5tCT87Y1726qzgLfxEE7wgtoRzB3R")),
+		},
+		{
+			Name: "check ResourceFormatNamespaceContainers",
+			Target: engine.ContainerTarget(
+				fmt.Sprintf(native.ResourceFormatNamespaceContainers,
+					"BzQw5HH3feoxFDD5tCT87Y1726qzgLfxEE7wgtoRzB3R")),
+		},
+		{
+			Name: "check ResourceFormatRootContainer",
+			Target: engine.ContainerTarget(
+				fmt.Sprintf(native.ResourceFormatRootContainer,
+					"BzQw5HH3feoxFDD5tCT87Y1726qzgLfxEE7wgtoRzB3R")),
+		},
+		{
+			Name:   "check ResourceFormatRootContainers",
+			Target: engine.ContainerTarget(native.ResourceFormatRootContainers),
+		},
+		{
+			Name:   "check ResourceFormatAllContainers",
+			Target: engine.ContainerTarget(native.ResourceFormatAllContainers),
+		},
+	} {
+		t.Run(test.Target.Name, func(t *testing.T) {
+			res := transformNameIfContainer(test.Target)
+			const contractStorageKeyLength = 64
+			const entityTypeLength = 1 // 'n', 'c' or 'i'
+			require.Less(t, len(res), contractStorageKeyLength-entityTypeLength)
+		})
+	}
+}