diff --git a/src/lib/registration/releasever.rb b/src/lib/registration/releasever.rb
new file mode 100644
index 000000000..ba597ebd2
--- /dev/null
+++ b/src/lib/registration/releasever.rb
@@ -0,0 +1,81 @@
+# ------------------------------------------------------------------------------
+# Copyright (c) 2015 SUSE LLC, All Rights Reserved.
+#
+#
+# This program is free software; you can redistribute it and/or modify it under
+# the terms of version 2 of the GNU General Public License as
+# published by the Free Software Foundation.
+#
+# This program is distributed in the hope that it will be useful, but WITHOUT
+# ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS
+# FOR A PARTICULAR PURPOSE.  See the GNU General Public License for more
+# details.
+#
+# You should have received a copy of the GNU General Public License along with
+# this program; if not, contact SUSE LLC.
+#
+# To contact SUSE about this file by physical or electronic mail, you may find
+# current contact information at www.suse.com.
+# ------------------------------------------------------------------------------
+
+require "yast"
+require "registration/sw_mgmt"
+
+require "uri"
+
+module Registration
+  # this class handles activating the new releasever value in the package management
+  class Releasever
+    include Yast::Logger
+
+    # the placeholder used in the URL
+    RELEASEVER_ID = "$releasever"
+
+    Yast.import "Pkg"
+
+    attr_reader :version
+
+    # constructor
+    # @param [String] version the new release version value
+    def initialize(version)
+      @version = version
+    end
+
+    # activate the new releasever
+    def activate
+      log.info "Setting $releasever to: #{version}"
+      # export the settings
+      ENV["ZYPP_REPO_RELEASEVER"] = version
+
+      repos = releasever_repos
+      return if repos.empty?
+
+      refresh(repos)
+      # refresh the loaded packages
+      SwMgmt.sync_pool
+    end
+
+    private
+
+    # get the repositories which contain "$releasever" directory in the URL
+    # @return [Array<Fixnum>] the repository list
+    def releasever_repos
+      repos = Yast::Pkg.SourceGetCurrent(true)
+      repos.select do |repo|
+        data = Pkg.SourceGeneralData(repo)
+
+        url = URI(data["url"])
+        url.path.split("/").include?(RELEASEVER_ID)
+      end
+    end
+
+    # refresh the requested repositories
+    # @param [Array<Fixnum>] repos the repositories to refresh
+    def refresh(repos)
+      repos.each do |repo|
+        log.info "Refreshing repository #{repo}"
+        Yast::Pkg.SourceForceRefreshNow(repo)
+      end
+    end
+  end
+end
diff --git a/src/lib/registration/sw_mgmt.rb b/src/lib/registration/sw_mgmt.rb
index 774df67d1..97fe4e1c2 100644
--- a/src/lib/registration/sw_mgmt.rb
+++ b/src/lib/registration/sw_mgmt.rb
@@ -450,6 +450,14 @@ def self.products_from_repo(repo_id)
       end
     end
 
+    # synchronize the changes done by modifying the services or repositories,
+    # reinitialize the repositories and reload the available packages
+    def self.sync_pool
+      Yast::Pkg.SourceFinishAll
+      Yast::Pkg.SourceRestore
+      Yast::Pkg.SourceLoad
+    end
+
     def self.get_release_type(product)
       if product["product_line"]
         oem_file = File.join(OEM_DIR, product["product_line"])
diff --git a/src/lib/registration/ui/migration_repos_workflow.rb b/src/lib/registration/ui/migration_repos_workflow.rb
index d8b5f561a..7ff888f6a 100644
--- a/src/lib/registration/ui/migration_repos_workflow.rb
+++ b/src/lib/registration/ui/migration_repos_workflow.rb
@@ -17,6 +17,7 @@
 require "registration/registration"
 require "registration/registration_ui"
 require "registration/migration_repositories"
+require "registration/releasever"
 require "registration/sw_mgmt"
 require "registration/ui/migration_selection_dialog"
 require "registration/ui/migration_repos_selection_dialog"
@@ -111,6 +112,9 @@ def run
         "select_migration_products"   => {
           abort:  :abort,
           cancel: :abort,
+          next:   "update_releasever"
+        },
+        "update_releasever"           => {
           next:   "register_migration_products"
         },
         "register_migration_products" => {
@@ -138,6 +142,7 @@ def run_sequence
           "find_products"               => [->() { find_products }, true],
           "load_migration_products"     => [->() { load_migration_products }, true],
           "select_migration_products"   => ->() { select_migration_products },
+          "update_releasever"           => ->() { update_releasever },
           "register_migration_products" => [->() { register_migration_products }, true],
           "activate_migration_repos"    => [->() { activate_migration_repos }, true],
           "select_migration_repos"      => ->() { select_migration_repos }
@@ -255,9 +260,7 @@ def register_migration_products
 
         # synchronize the changes done by modifying the services,
         # reinitialize the repositories and reload the available packages
-        Yast::Pkg.SourceFinishAll
-        Yast::Pkg.SourceRestore
-        Yast::Pkg.SourceLoad
+        SwMgmt.sync_pool
 
         log.info "Registered services: #{registered_services}"
         :next
@@ -309,6 +312,21 @@ def activate_migration_repos
       def select_migration_repos
         UI::MigrationReposSelectionDialog.run
       end
+
+      # update the $releasever
+      def update_releasever
+        new_base = selected_migration.find(&:base)
+
+        if new_base
+          log.info "Activating new releasever for base product: #{new_base}"
+          releasever = Releasever.new(new_base.version)
+          releasever.activate
+        else
+          log.info "The base system is not updated, skipping releasever update"
+        end
+
+        :next
+      end
     end
   end
 end