According to BBC Radio Lincolnshire, the Imps have paid roughly £350,000 for Varfolomeyev, surpassing the previous record price the team paid for John Akinde in 2018.
Born in Crimea, the 21-year-old made his debut for Rukh Lviv, a Ukrainian top-flight team, against Shakhtar Donetsk in February 2021.
A year later, he relocated to Slovan Liberec, where he made 20 league games the previous season and established himself as a key member of the club. He has played for Ukraine's Under-21 team seven times.
In an interview with the Red Imps Club podcast on BBC Radio Lincolnshire, Lincoln head coach Michael Skubala described Varfolomeyev as a player with "great promise" and emphasised his background as an under-21 player.
"Our recruitment team have been keeping tabs on him for quite a while, and it's good to bring an exciting young talent into the building," he stated.
Varfolomeyev joins Sonny Bradley, Ryley Towler, and Francis Okoronkwo, who is on loan from Everton, at Sincil Bank as Lincoln's fourth summer window acquisition.
"It's always been the intention of the board to support the team and get bodies back after all our outgoings," Skubala explained.
"We said we needed to get the right ones in and it's taken a bit longer but the board's definitely backing what we need to do."
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