diff --git a/yum/__init__.py b/yum/__init__.py
index 99039e0..003adda 100644
--- a/yum/__init__.py
+++ b/yum/__init__.py
@@ -490,7 +490,7 @@ class YumBase(depsolve.Depsolve):
             repo.name = section
             self.logger.error(_('Repository %r is missing name in configuration, '
                     'using id') % section)
-        repo.name = to_unicode(repo.name)
+        repo.name = to_unicode(varReplace(repo.name, self.conf.yumvar))
 
         # Set attributes not from the config file
         repo.basecachedir = self.conf.cachedir