Jovanovski, the tournament's No. 5 seed, was an easy 6-2, 6-2 winner over Panova. She dropped just 11 points in eight games serving and took 51 percent of the points when Panova served.
Julia Cohen earned the other finals berth, beating Olga Puchkova 3-6, 6-0, 6-3. She lost her serve three times in the first set but only once after that while amassing five breaks over the last two sets.
It took Cohen more than 2 1/2 hours to complete her come-from-behind win while Jovanovski advanced to Saturday's final in about half that time.
It is the first WTA final for both players and Saturday will mark the first time they have met on the tennis court.
The Baku Cup champion will earn $37,000 with the runner-up taking home $19,000. Panova and Puchkova each won $10,400 as semifinalists.