It was a narrow victory for the 33-year-old boxing veteran from Cuba. When the score stood at 8-8 in the final round Hernandez, the 2003 world champion, snatched a punch with only two seconds remaining to secure a place in the final.
As there is no bout for third place, Balakshin was automatically awarded a bronze.
Hernandez will face Somjit Jongjohor from Thailand in the final.
With two days left of the Beijing Olympic competition, Russia is currently ranked 4th in the overall medal standings with 16 gold, 16 silver and 21 bronze medals, while China tops the standings, boasting 46 gold, 15 silver and 22 bronze medals.