In the second semifinal - after half the crowd had followed Kournikova from the stadium - fifth seed Panova, also of Russia, needed 1 1/2 hours to dispatch Croatian qualifier Talaja 6-3, 6-2.
Smashnova goes into her third final with a two-from-two winning record. For Panova, this will be her second final. She lost her other one, in 2000, to Luxembourg's Anne Kremer in Pattaya.
Panova beat third seed Kremer in the quarter-finals here.
Any sense of expectation when the rain cleared to allow Kournikova and Smashnova to walk on to centre court on time for their semifinal was quickly replaced by a sombre, muted mood as the star dropped her first serve and then the set inside 30 minutes. The second set was more of the same. Kournikova was down 0-40, with a double fault, and then dropped the opening game with a weak shot.
The statistics told the story. Fifty unforced errors for Kournikova. A handful for the diminutive Israeli.
"I do not think Anna played her best game," Smashnova said. "But I did not either."
Making no apology for her baseline-based game Smashnova said: "My game is to keep the ball in play.
"If somebody thinks my game is boring, they can think like that. I do not feel very comfortable at the net. I just don't go there. I am very patient. That is my strength."
Kournikova, who this week admitted patience was not one of her strong points, said: "I should have played the game more the way I wanted to. I did not go to the net as often as I should have. She is the kind of player who gets everything back. You have to play the perfect game to beat her. I didn't."
Questioned about her dismal record of reaching the semifinals of tournaments (now 17 times) and going on to only three finals - and losing all - Kournikova said: "I was playing against another human being - and I lost."
Panova raced to 3-0 and was never headed in taking the first set from Talaja. The second set was even easier, Panova again winning the first two games and ending it 6-2 in just 30 minutes.
"I'll sleep well," said Panova, who returned to the court for her doubles semifinal which she and Tatiana Poutchek, of Belarus, lost 2-6, 3-6 to top seeds Nicole Arendt (US) and Liezel Huber (South Africa). "I'm going to be okay tomorrow. Being in a final will lift me."
Of Smashnova, Panova said: "She looks like she has been winning easily. There are no unforced errors. I know her pretty good. Maybe I'll try and change things."
But she agreed "there could be long rallies" before the $US22,000 ($51,600) winner's cheque is handed over.
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