Turn 55: 2-8 July 1942
In July, the contrasting dynamics on the battlefield were reflecting in the fortunes of the Kalinin and the renamed Stalingrad Fronts. The former was showered with combat decorations for its defence of Smolensk.

[1]
The latter faced a disaster on the scale of 1941. Almost all of two armies (12 and 61) were cut off and a total of 300,000 men were encircled as the Soviets paid the price for not falling back in the previous week.
Smolensk
On the Smolensk-Bryansk-Kursk sector, it appeared as if the Germans had gone over to the defensive. Soviet reconnaissance flights detected what appeared to be 3 Panzer Corps in reserve. One was presumed to be the 39 Panzer which had been pulled back at Smolensk. Two were deployed to the south of Bryansk, possibly to help out any German offensive towards Kursk, more likely to stall any further attacks by the Volkhov Front.
At Smolensk, Stavka authorised a limited offensive designed to take advantage of the lack of German reserves. Elements of their 50 and 59 Corps were battered as the Soviets not only regained ground near the city but turned the flanks of the German defensive line.

(Katyusha's supporting 32 Army)
To the south, elements of both Volkhov and Western Fronts struck at isolated German positions.
Ukraine
Here, the sustained fighting between the Vorskla river and Kharkov finally turned decisively against the Soviets. With the equivalent of 3 Armies now cut off, Stavka allowed a limited retreat but first had to extract formations trapped by the German advance. Elements of Crimean Front were ordered to disrupt the southern flank of the German encirclement and inflicted a series of heavy defeats on 14 Panzer Corps.

[2]
This counter stroke allowed elements of Southern Front to fall back in good order and take up defensive positions south of Kharkov protecting the Dombas industrial region. To the south, Stavka ordered Trans-Caucasus Front to fall back as its northern flank was now exposed. For the moment, the Soviets shifted tactics from a sustained defence to trying to draw the Germans forward in the hope they would have to start weakening their offensive force in the northern Ukraine.
In the Crimea, elements of 39 Army hastily secured Kerch and launched a local counterattack driving back the Romanian troops. At Sevastopol, Stavka rushed in fresh units despite the sustained German air raids. Given the relative weakness of the axis troops in the region, as at Smolensk, the scope now existed to regain ground and force the Germans to divert formations in order to shore up their defences.
[3]
OOB
For a change, here is the army OOB:
Organised by Front. Note that most fronts now have 5 combat armies but some only have 4 as I decide how much of my reserve will be needed to replace losses and how much will produce new rifle divisions for fresh formations. No front is more than 9 command points over its capacity and this will ease in 1943 as more corps are formed and the capacity increases again in April 1943.
Of the Stavka armies only 4 Shock is operational, I'll keep one of the tank armies back and that pair can operate as a genuine strategic reserve. Rest of the tank armies will go to Voronezh Front. I'm keeping 48 army as an empty shell at the moment, once its clear how much of my strategic reserve I'll have left I'll fill it out with new rifle divisions (also do this with the other armies with some command slots), but for the moment, prefer to retain some flexibility.
The 3 Armies linked to the Volga Front are covering quiet sectors and most have spare command capacity. Again I'll decide what to do once the summer battles are over but I suspect 2 of them will be allocated to the Voronezh Front.
12 and 26 Armies look incredibly strong, reason is that I have 'replaced' the divisions they have pocketed as part of rebuilding my defences around Kharkov. 61 Army is going to be a shell formation once the pockets are destroyed.
Not much to say about this. 4 BAK is supporting the operations of the Stavka reserve, rest are assigned to a single front. Most have 5-6 bases and around 500 planes.
Overall losses remained high. The Germans lost 30,000 men (10,000 killed), 170 tanks and 185 planes. Soviet losses were 195,000 men (22,000 killed, 130,000 prisoners), 300 tanks (mostly T-60 and T-70) and 500 planes.
[1] Partly due to the loss of a few Gds divisions in the south, mainly due to the July cap. This is handy as in winter a lot of the better Siberian divisions failed to make it to Gds as the Germans fell back from Kalinin and Western Fronts. So they were starting to slip into the situation of losing morale but retaining high experience levels. This should protect their morale.
[2] That was annoying, I forget to fill in a German controlled hex to the south of the initial attack so the Germans retreated there, effectively trapping 3 Gds Cavalry Corps. While the second victory did a lot of damage it also cost me a lot of movement points, so some units are exposed if the next target is Stalino.
[3] My hope is the losses in six weeks of constant combat means at least some of the Pzr formations are exhausted and unable to renew the main offensive for a couple of turns.
---------------------------------------------------------------------------------------------------------------
Sacha had rejoined his squadron (285 ShAP) and was involved in the bitter battles west of Kharkov. The pilots were exhausted by constantly having to both help our units fend off the Germans and support counter-attacks. Despite this, morale was high.

(Il-2s in action near Kharkov)
Vladimir was still serving with Malinovsky's 40 Army. They controlled the bulk of the mobile forces available to Bryansk Front so were constantly redeploying to deal with the German offensive. As part of the overall retreat on the Kharkov-Kursk sector they were briefly in reserve, but, of course, 2 Tank Corps was cut off deep behind the German lines. The inevitable price of the successful raid in the previous week.
