The Manchester United forward, who had only been on the pitch for a few minutes, brilliantly backheeled the ball past an onrushing Jonna Andersson and through the legs of goalkeeper Hedvig Lindahl to put England 3-0 up.
It was a remarkable display from Sarina Wiegman's side, who taught the world's second highest ranked side a footballing lesson to book their place in their first major final in 2009 at a bouncing Bramall Lane in Sheffield.
Beth Mead broke the deadlock as she fired home on 34 minutes - the Arsenal star scoring her sixth goal of the tournament.
The Lionesses extended their lead early in the second half when Lucy Bronze's header from a corner dropped into the net.
Chelsea's Fran Kirby rounded off the win with a chipped effort but Russo's goal was undoubtedly the pick of the bunch.
Reacting to Russo's amazing finish, Sam Matterface said on commentary for talkSPORT: "What on earth has just happened? That is outrageous. Sit down, shut up and go home! England are through to the final… that was filthy."
Former England international Lianne Sanderson added: "You're not going to see a better goal than that! I cannot get my head round that."
Meanwhile, Chelsea and Australia icon Sam Kerr tweeted: "Not gonna lie, that was lit from Russo."
The 28,624 in attendance will never forget the night that saw England produce their finest ever display.
They did get off to a nervous start with Mary Earps making good saves to deny Sofia Jakobsson and Stina Blackstenius early on.
But it was all England from when they took the lead somewhat against the run of play as Mead netted her sixth of these finals when she controlled Bronze's cross from the right before firing past Lindahl.
Wiegman's side didn't look back after that and their advantage was doubled when Lyon star Bronze's header went through a crowd before bouncing into the corner of the net.
Russo's moment of magic followed as she nutmegged Lindahl after having her earlier effort, which was a much easier chance, saved by the Swedish goalkeeper.
And the rout was completed when Kirby's chip slipped through the hands of Lindahl.