The young midfielder has joined the Brazilian contingent at his new club as he will be looking to establish himself in Europe
The midfielder has signed a five-year contract with the Ukrainian champions.
Mircea Lucescu's side were in the market for a new midfielder due to the departure of Fernandinho to Manchester City and they see the 21-year-old as the ideal replacement.
Fernando is a product of the Gremio youth academy and had developed into an important first team member at the Porto Alegre side since breaking into the first team in January 2010.
The midfielder has already been capped at senior level for Brazil and joins compatriots such as Alex Texeira, Taison, Douglas Costa and Luiz Adriano at his new club.
Shakhtar previously secured the services of Wellington Nem from Fluminense.