In the separation set, the unseeded Swede had 15-10 and a match ball at 20-19, but the Russian was able to wriggle out of the Swede's grip and smash in the victory points and win the Russian final.
It was a physically demanding match that lasted 64 minutes.
Urell hung over his knees by his bag for a good while after the match - to recover and gather for the interview afterwards.
- I'm very disappointed.
I had the lead in the third set but lost focus but I bring good things from here.
Now I am really tired after two matches, says Urell to the organizer.
The 18-year-old Russian praised the one-year-old Swede:
- It was so hard and she was so hard to beat, such a fast and technical player.
I am so proud to have given Russia a gold, says Shapovalova with tears in her eyes.
Strong finishes in the first two sets
The 73-ranked (for juniors) Urell finished the first set by winning eight straight points.
She went from 13-14 to 21-14 and finished the set by putting a backhand pass on the sideline out of reach of the seventh-ranked Russian.
Urell was close to a similar finish in the second set when she was down 11-20 and saved seven straight set balls but eventually fell 18-21 after the Russian had a hard smash and could easily shout out her joy.
It was really nervous among the Russian teammates with mouth guards in the stands when the Swede was close to turning.
The first Swedish women's finalist in 37 years
Urell had started the final session in Pajulahtihallen by losing the mixed final together with Gustav Björkler.
The German pair Matthias Kicklitz / Thuc Phuong Nguyen won a close settlement with 21-19,21-19.
Not since 1993 has Sweden achieved similar successes at a junior European Championships in badminton.
The last time Sweden had a finalist in women's singles was in 1983 (Christine Magnusson).
At the Swedish Championships in Umeå last winter, the then 16-year-old Urell, competing for the Uppsala club Fyrisfjädern, by becoming the youngest Swedish Championship winner of all time.