diff --git a/doc/configuration.rst b/doc/configuration.rst
index 0535ae97..ba0f5040 100644
--- a/doc/configuration.rst
+++ b/doc/configuration.rst
@@ -1849,8 +1849,10 @@ they are not scratch builds).
     A value for ``yum_repourls`` will be created automatically and point at a
     repository in the current compose. You can add extra repositories with
     ``repo`` key having a list of urls pointing to ``.repo`` files or just
-    variant uid, Pungi will create the .repo file for that variant. ``gpgkey``
-    can be specified to enable gpgcheck in repo files for variants.
+    variant uid, Pungi will create the .repo file for that variant. If
+    specific URL is used in the ``repo``, the ``$COMPOSE_ID`` variable in
+    the ``repo`` string will be replaced with the real compose ID.
+    ``gpgkey`` can be specified to enable gpgcheck in repo files for variants.
 
 **osbs_registries**
    (*dict*) -- It is possible to configure extra information about where to
diff --git a/pungi/phases/osbs.py b/pungi/phases/osbs.py
index 411f05a7..4f4a2980 100644
--- a/pungi/phases/osbs.py
+++ b/pungi/phases/osbs.py
@@ -128,7 +128,7 @@ class OSBSThread(WorkerThread):
         file pointing to that location and return the URL to .repo file.
         """
         if "://" in repo:
-            return repo
+            return repo.replace("$COMPOSE_ID", compose.compose_id)
 
         if repo.startswith("/"):
             # The repo is an absolute path on the filesystem
diff --git a/tests/test_osbs_phase.py b/tests/test_osbs_phase.py
index 04e98c19..b37fa178 100644
--- a/tests/test_osbs_phase.py
+++ b/tests/test_osbs_phase.py
@@ -330,7 +330,12 @@ class OSBSThreadTest(helpers.PungiTestCase):
             "git_branch": "f24-docker",
             "name": "my-name",
             "version": "1.0",
-            "repo": ["Everything", "http://pkgs.example.com/my.repo", "/extra/repo"],
+            "repo": [
+                "Everything",
+                "http://pkgs.example.com/my.repo",
+                "/extra/repo",
+                "http://cts.localhost/$COMPOSE_ID/repo",
+            ],
         }
         self.compose.conf["translate_paths"].append(("/extra", "http://example.com"))
         self._setupMock(KojiWrapper)
@@ -347,6 +352,7 @@ class OSBSThreadTest(helpers.PungiTestCase):
                 "http://root/work/global/tmp-Everything/compose-rpms-Everything-1.repo",
                 "http://pkgs.example.com/my.repo",
                 "http://root/work/global/tmp/compose-rpms-local-1.repo",
+                "http://cts.localhost/%s/repo" % self.compose.compose_id,
             ],
         }
         self._assertCorrectCalls(options)