Coach Pepu Hernandez's side had led for most of the game but Russia slowly ground them down and Spain's nerves got to them.
With two seconds remaining, guard Jon Robert Holden's two-point jump shot bobbled in to give Russia a slender lead.
The world champions sought out NBA star Pau Gasol for a last-ditch effort to win the game but his looping shot bounced off the rim at the buzzer.
The front page of Spanish sports daily Marca had a picture of Gasol lying on his back on the court with his head in his hands, under the headline: "They lost (by a point in the last second) but won (a place in every Spaniard's heart)."
Daily Sport's headline was "Silver Tears", while AS said: "Gasol failed, Kirilenko shone."
Read all of the Reuters story.