The Gladbach coach expressed his pain at coming so close to advancing to the next stage of the competition, after a stirring second leg comeback in Ukraine
The Swiss coach guided the Foals to a fourth-placed finish in the Bundesliga last term, but their quest to qualify for the main competition was ultimately ended by a 4-3 aggregate defeat to Yuri Syomin's troops.
"It was a great disappointment", the Gladbach trainer told ZDF. "We were a few inches away from a third goal when Kiev were panicking, but it's clear we have lost the battle at home."
Goalkeeper Marc-Andre ter Stegen has admitted that all his team-mates are disheartened by the result, but has now turned his attentions to Saturday's clash with Fortuna Dusseldorf.
"Of course we are all disappointed, but in the end, life goes on. We have to look ahead and see that we make sure that we go back to work focused at Dusseldorf on Saturday, and hopefully take three points there", said the Germany international.
Meanwhile, winger Patrick Herrmann also lamented his side's fortunes.
"We played a good game, maybe it took a little too long before the first goal went in," said the Germany Under-21 international.
"In the end it was very tight, but it was unfortunately not enough. My foot hurts, but on Saturday it continues," he added.