In the subsequent Fire segment (German turn), my infantry fired on the hex and broke the Russian squad.
In the Rout Segment of the German turn, the squad didn't route (though it would have been able to) and was not eliminated even tough it was in the same hex with a German AFV.
The Hetzer, being locked in CC was not able to fire [:(].
In the Close Combat segment of the Russian turn, the broken Russian squad also engaged in CC (see image).
I had to send two squads in the hex to free the Hetzer, but unfortunately they managed to do so in a German Turn, and an IS-2m (not visible in the image) killed the Hetzer in the subsequent Russian Fire Segment.
