The reason Russia did not offer coach Dick Advocaat a new contract beyond Euro 2012 was that its value was to depend on the team's results at the tournament, an FA official told RIA Novosti on Wednesday.
The 64-year-old Dutchman surprised Russia fans by announcing at the end of April that he would not extend his two years at the helm when Euro 2012 finishes.
He insisted he had wanted to continue, but took the silence from the Russian Football Union as a signal to look elsewhere, signing a one-year deal with PSV Eindhoven.
"Advocaat should have been working with the Russian squad [after the Euro], but the terms of his agreement were to be based on the outcome of the championship," said Vyachelsav Koloskov, the union's honorary president.
"Become the champions of Europe - that's one set of financial conditions, a collapse - that's another," he said.
Either way, the RFU wanted to retain Advocaat, he said.
"Otherwise we are left with nothing," he said. "No coach, a team of veterans. Rebuilding is required, but it is unclear who is going to do it."
Speculation is rife as to Advocaat's replacement, with Zenit coach Luciano Spalletti, ex-CSKA Moscow coach Valery Gazzaev and Rubin boss Kurban Berdyev all tipped as possible candidates.
Russia drew their first two warm-up games for the tournament, 1-1 against Uruguay in Moscow on Friday and 0-0 against Lithuania in Switzerland on Tuesday.
Italy are the final friendly opponents on Friday.
Russia are in Group A with the Czech Republic, Poland and Greece.