John Terry's first appearance for Chelsea since accepting his racism ban went awry last night as the European champions crashed to their first major defeat of the season away to Shakhtar Donetsk.

The Londoners were punished by Alex Teixeira and Fernandinho goals at the Donbass Arena, despite Oscar's late consolation, as Shakhtar took charge of Champions League Group E in the first of what could be a crucial double-header.

The defeat was their first since the UEFA Super Cup thrashing by Atletico Madrid and the display was almost as alarming at times as they were carved open by an outstanding Shakhtar.

The home side scored from their first attack after two minutes and 53 seconds, Luiz Adriano's shot hitting Terry's elbow and falling perfectly for Teixeira to slot past a helpless Petr Cech.

A horrendous gaffe by Eden Hazard gifted Shakhtar their second goal in the 52nd minute.The Belgian was pickpocketed in the centre-circle by Fernandinho, who fed Adriano and both raced goalwards for the former to slot past Cech. Oscar set up a tense finish two minutes from time when he swept home Ivanovic's cross.

David Luiz, the Chelsea defender, was at a loss to explain his side's defeat saying: "We did not play well – I am shocked by the performance. But congratulations to Shakhtar. Maybe now we can just think of the next game."