I filled a duplicate (#88884, sorry), got the exact same error message,
and i can confirm that typing

sudo mkdir /root/.gnupg

fixed the problem. i was confused because i do have ~/.gnupg for my
sudoer user.

-- 
update-manager -d fails to upgrade from 6.10 to 7.04 due to download problems
https://launchpad.net/bugs/82464

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