Shakhtar Donetsk have signed Brazilian attacking midfielder Taison from Metalist Kharkiv.
The 24-year-old had looked certain to move to Stamford Bridge until the deal collapsed when Metalist were bought out by Serhiy Kurchenko, who wanted a larger fee than the £8.5m Chelsea were offering.
Taison had a £12.4m release clause in his contract and after Shakhtar agreed to meet it.
A statement on Shakhtar's club website said: "Donetsk side took advantage of the clause in Taison's contract, according to which he could leave his former club for $20 million.
"As a result, FC Shakhtar paid $20 million, and we got a player who really wanted to join our team. The Brazilian player's five-year contract started on 11 January."