No.1 Erin Routliffe went down 7-5 6-1 to Sabina Sharipova, a player ranked 194, more than 400 places above the Kiwi.
Emily Fanning and Katherine Westbury teamed up for the dead rubber doubles match and were beaten 7-5 6-1 by Akgul Amanmuradova and Yasmina Karimjanova.
New Zealand captain Neil Carter said New Zealand had their chances and would learn from their inability to capitalise.
"The girls are gutted, really gutted at the end of the day which is what I want to see, because it hurts," Carter said.
"They've got to learn to really step up in those type of matches."
- AAP