Russell had been on provisional pole after the first runs in the final session but was pipped by 0.055 seconds by Verstappen’s final lap.
Russell felt the Verstappen incident had prevented his tyres being in the right operating window for his final lap, on which he did not improve.
The Mercedes driver said: “I expected to improve on the second lap and had a scrappy out lap, nearly had the collision with Max and went into the gravel two corners before I started it.
“The time was in the car but as soon as I went into Turn One the car and tyres just didn’t feel right and I was in the gravel two corners before I started my lap.
“It was a shame it ended that way.”
McLaren drivers Lando Norris and Oscar Piastri took third and fourth, after the Australian led a one-two in the sprint race earlier in the day.
Ferrari’s Charles Leclerc took fifth from Mercedes’ Lewis Hamilton, Ferrari’s Carlos Sainz and Aston Martin’s Fernando Alonso.
Despite losing pole, Verstappen’s performance was a remarkable turnaround after the Red Bull had finished an uncompetitive eighth in the sprint.
The world champion had complained of no grip or balance in the sprint but the team found a better set-up for the main qualifying session.
Verstappen said: “Crazy. Honestly, I also didn’t expect that. Well done to the team to give me a car that feels a bit more connected and once the car is more together you can push a lot harder.
“We did change a bit on the car but I never thought it would make such a swing in performance, it felt a lot more stable over one lap and that is exactly what we need.”
Russell said: “I was really surprised by [Red Bull’s] turnaround. I think we’ve got a good race on our hands.”
Norris, who dominated the sprint race before handing victory to Piastri on the run to the line, was 0.252secs off pole.
“Not the position we were hoping for after yesterday and today but the maximum we could do,” Norris said. “The lap was pretty good. It was pretty happy with it but just not quick enough compared to the others.
“Not a lot in it between all of us, which gives us hope we can all go forwards. We showed good race pace today I did gave the benefit of being out front and having clean air but I think we still have a good chance.
“I don’t think we are as quick as the Mercedes and Red Bull showed how much they improved since yesterday.”
McLaren can clinch the constructors’ championship in the grand prix, but only if they finish one-two and take the fastest lap.
Hamilton was 0.491secs off pole but managed to split the Ferraris, while eighth was an encouraging performance for Alonso after a difficult season for Aston Martin. The veteran two-time champion was just 0.21secs off Sainz’s Ferrari, and 0.174secs quicker than Perez’s Red Bull.
For the Mexican, it was a better result after a dire performance in the sprint, which he started from the pit lane and was caught napping at the lights when he did not go straight away and was passed by Williams’ Franco Colapinto.
But he was still 0.905secs off Verstappen and his future in the team remains in doubt.
