To understand the behaviour of point defects generated in irradiated FeCr ferritic/martensitic steels and to identify the kinetic pathways of micro-structural evolution of binary model Fe–Cr alloys, we use a combination of density functional theory (DFT) with statistical approaches involving cluster expansion and Monte Carlo simulations. This makes it possible to generate in a systematic way the low-energy configurations required for the subsequent DFT study of intrinsic defects (vacancies, interstitials) and impurity-defect interactions over the entire range of Fe–Cr alloy compositions. In the limit of low Cr concentration, DFT calculations predict that an intermetallic compound Fe15Cr has the lowest negative heat of formation. At higher Cr concentrations, simulations performed using a 4 × 4 × 4 super-cell show that magnetism is responsible for the nano-segregation of the ferromagnetic Fe15Cr and anti-ferromagnetic (α′-Cr) phases giving rise to the formation of clusters characterised by a very low positive heat of formation. We perform a systematic investigation of formation energies of point defects and their energies of interaction with Cr atoms. Further investigation of interaction of interstitial and vacancy defects with impurities (V, Nb, Ta, Mo, W, Al, Si, P, S) also shows a complex picture of interplay between magnetism and short-range ordering that affects the interaction between defects and impurities in the presence of chromium in Fe-rich alloys.