The 20-year-old midfielder has signed a five-year deal to become the club's third Brazilian signing of the summer.
The 20-year-old, who notched seven goals and seven assists in 33 appearances for the Brazilian outfit last season, was delighted to have signed a five-year deal with the Ukraine giant.
“I know Shakhtar very well, they are a huge club,” he told reporters.
“I have followed their progress in Europe and am very happy to make the move.”
Fred follows Fluminese’s Wellington Nem and Gremio’s Fernando to the club this summer, with compatriots Luiz Adriano, Maicon, Douglas Costa, Taison, and Alex Teixeira already established in the side, and he is determined to follow their example and break into the first team quickly.
“I already know some players here like Taison, Luiz Adriano and Douglas Costa. They are my friends," he continued.
“My task is to break into the first team and play a part in the Champions League. I will also do my best to help this club succeed and fulfill its goal of winning the Champions League.”