Anand, who had shown fine form coming in to the quarters, ran out of steam in the second game with white pieces and found himself in a lost position in almost no time in the 1,50,000 Euros prize money tournament.
Michael Adams of England kept the local hopes alive by defeating Russian Peter Svidler in the tiebreaker while Boris Gelfand of Israel stole the limelight ousting Fabiano Caruana of Italy.
In the other quarterfinal, Hikaru Nakamura of United States defeated Nigel Short to cement his place in the semis. It turned out to be a disappointing second game for Anand from the white side of a queen pawn opening.
Kramnik opted for the age-old Tarrasch defense and Anand avoided routine theory that allowed the Russian to equalise without batting an eye.
Anand made a positional error on the 15th turn that gave Kramnik the initiative to look for more and the latter came up with some sterling manoeuvres to seize the advantage.
Anand was already fighting a lost position after 20 moves and a final blunder cost him a piece and the game soon after. While the second game was almost a no-show by Anand, the first game was a clear indication of his good form displayed thus far.
Playing black Anand went for the Semi-Slav defense and looked a little worse out of the opening when Kramnik moved his queen over to the sixth rank.