T37: 26 February – 4 March 1942: How Have I Peace
By the end of February, it was clear that the Axis forces had held Soviet winter offensive. The fighting became fragmented as both sides sought minor advantages. To the north of Vyshny Volochek, 3 and 4 Shock Armies continued to make gains. In the Ukraine, SW Front launched a series of localised attacks between Kursk and Orel, primarily to gather reconnaisance on the deployment of the German mobile reserves.
North of Moscow, the final battles of the Povarovo offensive occured. The main action saw Kalinin Front's 21 Army make gains to the east of Istra, mainly to give elements of the Moscow Military District time to dig in around Povarovo. Near Kalinin, 33 Army again made inroads but this time the Soviets were unable to cut the German communications.
In the air, the deployment of the bulk of the lend-lease P-40s to the Moscow sector paid off as the German attempts to gather information on Soviet redeployments led to heavy losses among their recon planes.

[1]
The map of the front lines, from the Arctic to the lower Don showed painfully little movement for the combined losses of 180,000 killed and 1.3 million disabled on both sides. In addition, 2,200 tanks had been reported destroyed.
This gives an overview of progress in the Winter Offensive and key changes to OOB (both sides), losses and the relative recovery of my industrial base. I can only lose 34 more VP so I don't have much room to fall back – hence the heavy concentration of both front line and reserve formations around Moscow.
The following tables show the losses in a bit more detail and may help place things in context.
I'm not too sure how to interpret either of those data sets. German armoured losses are mostly various Pzr III (not surprising as it should be the backbone of their tank force at this stage). I've seen Stef78 argue that losses of 1941 don't matter for 1942, if so I doubt I have seriously dented the German armoured forces. The loss, in total, of over 5,000 infantry style squads I think will hurt more and may mean the German infantry are less able to conduct an attritional battle for Moscow.
For the Soviet losses, its pretty clear the bulk of my tank losses were either in obsolete models or the light tanks. Losses of the medium tanks I will need for 1942 and the KV1s are minimal. This fits more general observation as its in terms of light tanks that my tank brigades and cavalry corps are short.
The loss of so many cavalry squads hurts in terms of replacing them (they cost a lot in armaments), but then they have been my only semi mobile asset all winter.
Again, not too sure how to interpret that. The bulk of my air losses are in series that are obsolete, or will be quite soon into 1942. Although I've lost a lot of Yaks/P-40s, its something I can easily absorb as with the losses of Il-2s and Pe-2s.
I've pushed the VVS hard to support my attacks, so overall the losses reflect my reliance on it.
For the Germans, its clear the Ju-87s have hidden in Germany for the winter. I'm not sure what is easy to replace but I seem to have done some steady damage to both the level bombers and the transport aircraft.
The final table shows all the lost units. For my side, its a bit misleading as it conflates disbands with destroyed but its pretty grim. All I've managed to destroy is 2 FZ and 1 SP gun battery.
Looking Forward
Main issue now is what SigUp will do in March. He can attack, but I think (from my probing attacks in the Ukraine) that the bulk of his armoured reserves are now north of Moscow. I think his infantry needs a break so taking on the multiple belts of 16-28 defensive CV stacks that ring Moscow will cost him a lot of tanks.
If he hits at SW Front, southwards, my lines are more vulnerable.
As to the main defensive phase of 1942, I have, basically 4 different defensive models.
In the far north, if he attacks, he can have what he wants.
At Moscow, the main defense is the depth of forts and the existence of 3 reserve armies. I can't stop him, at least not at first, but its going to be a slow grind to and beyond Moscow. I have the makings of about 4 Gds Rifle Corps, and these can be thrown into the Moscow battles if I need to.
From Kaluga-Voronezh, I have a less impressive first line, but behind this are 5 armies with a lot of combat power (2 shock and 3 made up essentially of cavalry corps. This means I can lash back at any exposed attackers.
South, I'm weak, have some depth on the direct road to Stalingrad and have covered the key cities in the Caucasus. Here I'll be relying on logistics as much as combat power.
My weakness is the lack of Gds. With some conversion of paratroop brigades, I can generate 4 Gds rifle corps. These can either help in a defensive battle for Moscow or give me a decent amount of combat power somewhere. I do have a lot of units that are on the verge of converting and hope that in a defensive/counterattack battle I can do a better job at managing this than when on the offensive.
From my experience in this phase of the war, the lower logistical values are working pretty much as we originally hoped.
I have the makings of a 4 Tank Armies and a combined arms army based around Tank and Cavalry Corps. That will help with hitting exposed spots, especially if SigUp goes for Stalingrad et al.
[1] – I'm not sure why, but I do seem to have shot down a lot of these.