The Italian is furious with decisions that have gone against his side in the World Cup, and was left enraged by lasers distracting goalkeeper Igor Akinfeev against Algeria
Aleksandr Kokorin's header gave his side a first-half lead before the Desert Foxes struck back through Sofiane Feghouli to ensure that they progressed at the expense of their opponents.
Capello was extremely unhappy with some of the officiating that took place during the game, citing the Algerian equaliser where Akinfeev had a laser pointer shone in his eyes as the ball came into the box as an example of how decisions have not gone his side's way.
"We could have won," the 68-year-old was quoted by Sovsport.
"But, unfortunately, we let in the goal. There was no whistle there. I kept silent when asked about the referees before. But now we can say what we want.
"For 10 minutes our goalkeeper was dazzled by a laser pointer! There is photo and video evidence. This is a fact, there is no other opinion. There was a goalkeeper with this beam in his eyes. And then he missed the ball.
"I can complain about the refereeing in the match with Belgium," he added referring to a penalty claim in the 1-0 defeat.
"I'm not looking for excuses in life. If played poorly, then I'll say so. But then Akinfeev was dazzled by a pointer. You've seen it all!"
Russia were looking to build on a disastrous Euro 2012 campaign, where they also exited as the group stages, but Capello insisted that they should look ahead to hosting the World Cup in 2018 with him still at the helm.
"Today we made no errors," he continued.
"But we failed. Their goalkeeper twice reflected heavy shots. We're packing our bags because we made some minor mistakes.
"Of course I want to continue my work with Russia if they want me. I've done good work. I took England to the World Cup after they missed Euro 2008 and I've taken Russia to their first World Cup in 12 years."